Commr. Of Income Tax-I, Chd. v. Usha Saboo
! "
# $ #% !" #
! "
# &''% #% !" $ (
! "
# )*#% !" % +
! "
# !#% !" & (
! "
# - . ! #% !" ' (
! "
# / 0 ! #% !" ( ((
! "
# )*#% !"
1) 213456)-$# 6#-.78) 9 268-$# 6 213456)-$# 69##2:5-$96
ITA No. 557 of 2006 : 2 :
) *
+,+ --."
!/ .0!
+ * "+,12 ,.2,!
"
!/ 3, + * ,1 +,4."
!/ .0!
+ 5555 #-.78) 9 268-$# 6)6 + -, +!
" +/!78 ,9 !3,- !" : -, + !
" !0 !77,,! !0 /!7 8 ;< , !/",- ,,- !
!0 7 !
" " " / ,!%$;$<!0 +/!78/ .=',
/ +7 4 ==%6=& # + 7, > ,!!0 3 +7 , + + > ,!!00/ ,!//! +7
/ ,!+ 0/ 7!
," ,/" ,4 , /!/ "?. 0!
.",! !0 +94 +,/!77!!
" "@ "-7 ?3,0!
/! ,/. +!3 . 0 +0/ ,!&&(!0#AA' $ + / , 6+ , +, + !" , + 9!
779 +29!!- ! !B/1
29!!C "3@!,
9 3 !" " *D +!"!
!B 2!+ /1
"09 ,1!77", /+0 .
+,0, 7, 74 ; !B/1
- ! <+29!!- ! " !B/1
- ! +"%AE" 'AE + !0 + > , 4 /, !0 !B /1
29!! C " / 4 , !9 3 3!- ! ",- +29!!- ! 0,,- ,! 0!
! ,! " 7,7-7 " / ,! $=( " $=F !0 !7,/ .=&'+ ,!3",7,"+29!!- ! 0," " / ,!A +!7,/ .=&'90!
+,,-+!
+ 7
3 ,7 4
" , 7 !0 2+
/+ - " "#A==$ %AAD63 !9 +/!," ,!0!
+!0
ITA No. 557 of 2006 : 3 :
++ +"94 +29!!- ! + !B/1
- ! +- ! /! ,"
,/ D- /!
-, 94 + 29!! - ! +
!" /! "" +43 " !!
,! 7!0 AAD6!
!0 %AAD6/!," ,!0!
+- /!
+,/,73 @/ 94 +,- 00,/ " +;<9 3!3"94 +!
" ,9 ,7 -", +, % ? + +" +! -+ + - ","!
9,0 / /!," ,! !3 " ,! /!
, +- . +3 " !9,0 / +7"!
,!
!0 !3 " +- /!
+7
,!
,3,/!
", !" :0 94 @ "-7 +2 7!
+,,! ,3 194 !
,-+ !
0/ 3 + +" + 7! !0 AAD6 !
!0 %AAD6!
,!" !3 " +- D
,/ /!
3,0/ !
+/!
,"
,- +/!/ ,!3+ !" 3, + /
,!
, &.&&.#FAD6 + & + !" 0,"
!0 ,/!7 !0 ,- 00,/ " !" : ,/!7 %.##.A#AD6 +
!" /+-" + !
" 90!
+ !77,,! !0 /!7 8 ;<! ,! - ! ",/ ",- +! + 9@/ 7
+;<",7," ++ ,9 !3"
!" :-, +,!
" ' +3"7,
"! +0!!3,- 9 ,> ,!!0 3)6 G?+ ! + 0/ " /, / 7 / !0 + /. !:9 , @ ,0," , 3 ,
,- 7 !0
AAD6 + /, /, !
/+ -9 8
ITA No. 557 of 2006 : 4 : 9/ ,,!!02/ ,!%F. + /, !!0+ /+ -9 8HI ( =&=. ! J29!! +" !9 ," 0 !7 + !
7 !0 ",,"
,,//0!
+7 0/
!0+!, 4"0,/, " /!9!
,! - 3 " , ! 9 3 J29!! " *D +!"!
!B2!+ /1
"09 ,1!77", /+0 .
+,0, 7, 744
" "#=&=. +!
7 !0 ", + /!9!
,! - + ," J29!! " !B/1
- ! ", !- !0!
7" !7!
/!74 ,7, ". 94 + , ", //!
",-4. ! &A='A. !B /1
29!! C " 3 ,/!
!
" 3+,/+ 9/7 "7" 9,/ ,7, "/!74 " / ,!%$6!0 +!7,/ .=&'+ !B /1
- ! +"'AE+ " +,"29!!- ! , !" +"%AE+ !0 +> , 4/, F !
9!
+4 =FF", "",00 / !9 3
+ !B/1
- ! " +29!!- ! ##A==#. +29!!- ! 0," ,! " / ,!$=("$=F!0 +!7,/ .=&'-,
+ !B/1
- ! 0!
7,7-7 "! ,!!07,!
4+ 6 +!" 90!
+ !74 C3 ! " 3 +, + !74 C3 ! " 94 !
" " " ##A==# @/ + ,! " ", / 29!! - ! ! , %AE + , !B/1
29!! C " + !B /1
- ! !9" 7,"94*D2,,7!
,!74. +
"//! + 29!! - ! 0," " / ,! A;
< !0 !7, / . =&' 90!
+, ,-+ !
, 3+,/+ , ,7 !
"
4,- +! ,!!0 +!
" +!74C3! "3"
ITA No. 557 of 2006 : 5 : = + 779 !0 + 29!! - ! " + !B /1
- !
" +7
, 7!02+
/+- " "#A==$ + !B /1
- ! , 0
, + K /+ : " 779 +29!!- ! 0
, +K :/+!0 779 !0 29!! - ! - " ! .
0 . ,- " ", /+ , + !B/1
- ! +, + + ,-!7, !0 AD6 + + ,/!0 %AAD6 + -- - ,- ('A/ + ,/!0 ++ 3,/ , !0", ,"" ,-+ '!0 +- ,"" , 30 "7 /!", ,! " / !0 + /!
/ + 3! " 9 !0 + %%A.AAAD6> , 4+ !3"94 +29!!- ! + ,,!!0
+2+
/+- " )6
!
! !
!! "
!
#
!
!
ITA No. 557 of 2006 : 6 :
# ! ! !
! !
!
!
!
!
#
! $
!
!
#
!
!
# ! ! !
! !
!
!
% #
! &
!
! ' !
!
#
!
(
!
)!
* "+ ,
- !
.
/ .
0
/123441
5!
-6 -
!
(
7!
ITA No. 557 of 2006 : 7 :
230!!3442
! !
8 0
* A + !" /! "" !
!0 + 7 !0 %AAD6 . 7!0 AAD6! -+ !9!
,!"/!," ,!!//!
+ - /!
, " , + 2+
/+ - +4 /! "" +," 7!0 AAD6 + 3! "9!//! !0/,
/, 0!
- ,- + - /!
" + 2+
/+ - " +79,-/, ,
3!
/+ -9 8! @ ,04 + 9, " + > 7 !0 +, /,7 0!
!
,!7 .
!" 0," ,! !
++
"//! *DL,+ !/, 3+,/+ " + + =$# 9 16 ! $A$==$ + //!
",-4 /,7" "" / ,! !0 AAD6 !
!0
7!0 %AAD6 + +,- 00,/ .+!3 .",!3"
+7+" !" D3!
" !, 6
!0 + + , " , + 2+
/+ - + ,- 00,/ +" 3!, 6 !0 + ,/!0 %AAD6, 2+
/+ - " 3 ! "!/ 7 4 !!0 AAD6!
%AAD6 + 3 !3 " +- /!
+,- 00,/ !
+@ "-7 +2 7!
" + *"
,-+ !
" !9
, +! / + !0 9 , "
0 !0 7-7 !
7, ,! !0 -/4 " /!7 ,!0!
,
0 " 0 ,,-0 !7/!7 ,!3
" /, /, ,! 4.+!3 .++" +/, ,,!!0 /!78/ .74/ ,!("#F;,,< " + ,/,.
ITA No. 557 of 2006 : 8 :
0!
. 0 " !0!!3 +@ "-7 ?3,"3, +/ ,!#F;,,<!0
+/
0
,- + 9!
,,! !0 + 2+
/+ - .++" + !B/1
- ! 0 4,- %AAD6 + 3! " + 9 0!!,+ !
1 + / /! ," , + 9!
,,! 3/! "" 90!
+ ,,!3 ,, !94 + !B/1
- ! !4!
!09 " / ,!+,- 00,/ ! +" ! 0/ + 9,0 / ,! ! //! !0 + - /!
+"!
9 9,+"+,/! ,!3 , "90!
" 3 3, ! " 3, + + 7 0
+" + ,/ !0 %AAD63 + ,/!0/++ " +- /!
7 4 0!!3" ! + !B /1
- ! 1,- !
+ 7-7 !9
,0 3 !9!
,!7 +/!," ,!. , / 3+! ,> ,+"!00,/ 3! "- +,-+ 7! + +!
779 +29!!- ! 3/! ""90!
,0/ 3 !!
,!7 # +;<+" !" ,!&&(!0#AA' 3, , / !
7!4!0 +/!74M +3!
/+,/ 8
M + !0 + + /! " !
+ 7 !0 7- ,/!
! 3+" !" 3!
, / !
7!4 !0 + /!74. + /! " !
+ 4 7 !0 7- , /!
!" +","!
+ 48
,
,7, ! 94 + /+ !0 + + , !B /1
- ! 0
/!/ ""
,/ /!
3!
,/9 !" , !&&(!0#AA' 3. 0!
.+" + 7! %AAD6 + 3 /, "-, +!0 ++ " +,- 00,/
ITA No. 557 of 2006 : 9 : +" ,-+ 4
+ 7!
+/, /, ,90!
/, -, $ ,!
/ 4 +, - 0 +!
" + ,9 3+,/+3+ +"?3, 0 +7 % *+ --. "/! ,-!9+0!0 + 97,
"0!!3)6 < + 9,-!9,0 / ,!, +- 9 3 !0
+ + " !0 + - /!
.
!" D3!
" !!
,!7 !00!
+ !!07 " +/!78/ < + 3 ,0/ ! /!," ,! 49 , / !0 - /!
< +!
" ,
L< 4 . +/!," ,!0!
+- /!
" &&,9 8 " / ,!#F!0 +/
& * + --:. 9! !!, ,! + , !
" ! 1 9,0 / ,! !0 + /!," ,! , " , + 2+
/+- 7 49/ +- "!!
,"0!
7 , !
3 0! "" !
,3. , " ! 1 9,0 / ,!!0 +/!," ,!7 ,!", +- ?+
+ /!," ,! 3 ," , / !0
,/ !7, !
!
, > ,!!00/ 3+,/+7 / ,4""! +0/ !0/+/
ITA No. 557 of 2006 : 10 : ' *2 ,: ,/ ! +@ "-7 !0, ,,!/+!0 !794,-+!
,
! " #$%&.,3 0! "" /. +*-,--/4!0 @ !
!*,C "3 +"94 +0, 7!02+ ,+-3"!"94- " F + 4. =$F + ," 0, 7 ,-" + 7-,- -/4 " %.($' !0 +/!74 !2+ + 7+
9+ @0!
(.&.AAAD64 - " "A(A==%'. 7, "+ !- " ,> ,+
+, 7-,--/4 ,-+ " !- *D+
72!!, *-,- - " ! '&.A# + !0 + /!74 + ,/ !0 '&D6 + +3
, 7, "+ !"
+8,-
7 ! -+ !+,7 8, / !0/, -, 0!
+7 4 =%F6%=/! ",- + ,/!0/++ +! " 9 1 '&D6 , + ,/ 7 ,!" , + - + /! "" + 7 1 ,/ !0 + + ! + " !0 - 3 %'D6 + ", , ,/3+,/+! -+ !9 1, /!," ,! 0!
" 7,,- + /, -, + ,9 // "
7 :/! ,!3+,/+" 0 /90!
+, ,,!/+ +,0 ,/+-1,-0!
+!
+")6 G/ , ! !
! ! 7
7
$
34+" !
, , ! !
!
!
!
9
ITA No. 557 of 2006 : 11 :
: "
;
31<'1# !
! ! !
( ! 5!
= ! !
>
!! ! !
!
! , ! !
! !
!
!
!
-
(
( :+"
,
(
!
,
!
? : "
!
5!
! !
31<'1# 0 : "
, ! !
( !
:+"
!
!
!
! @!7
A
B ! !
(
,
( !
!
,
! !
!
!
!
!
5! <!
( !
(
!
ITA No. 557 of 2006 : 12 :
!
!
C 9
!
:"
!
!
! / , .
!
,
!
,
!
!
! !
B !
!
( ! .
0!
!: :3D
!
!
! .
!
!
!
!
( !
> ,
,
! !
!
!
( !
0
!
! !
! !
!
!
!
5!
;
! !
!
31<'1#
! ( :+"
:"
* '
!
# ? , / 0 - 3, + +@ "-7
,/ 3- +
,!
+ ,-!
,!" +/!," ,!9 3 3!
ITA No. 557 of 2006 : 13 : 7!
/71!",00 / ,-+ + !1 !
,!7 +/!," ,!, / !0/+!0 +7 ( ?! !, ,/, ! +0 !7"!,- !+ !9/ ,9" !/+
/ ,!7 !9 ,! 4"" !
+ ,"/" +0/ ,/+/+ 8!03+
.7 9 ," ! + 9, !0
!0 + !0
/ ,! " !
7 4! +9,!0 / ,9" !, 94 +"". ,3
+/!
4/! "/ @ ",/ , 0!// /! ,!3! "9 !/ ,9
,0,/, ! 9,-
+7 ! !," 8 F !
" 94 + , ,,! /+ , ,@ + +
9+ @: /.
+- ,",/ 3!", ,/ 74 ++ " +7-,- -/4 + / 90!
+ - /!
" + + ,"" " ", ,/ 3 !,9 ! + " ,"" - , / !0/+!0 +7+- , 7!0
+ - /!
/! ," , && "," !
0!3 !
!0 - ! ++ /+!0 +- /! "+ 9
,"" +!
/+!0 +- /! "+ 9
" 3, +!
" , +9/!0 +!
+- /!
/! "+ 9- " !94 +779 +29!!- ! 3, +!
+ ,-!" +, " + 779 !0 + 29!! - ! /! " + !" +, + 3, +!
- ,- + - /!
3 0!
!
!4 7,,99 / 4 !!
,! +/!," ,! !3 "/+!0 ,""!0/!
, ,!,9 !/
, !0/+!0 + = /+ !0 + " "- !0 + 2 7 !
, ' "( # )
$$
ITA No. 557 of 2006 : 14 : ! "$*#
" 3, + +, 4, ,-0! "
!7 -, ,- + -/4. +
, +" ! " ,
,/ /!
. +2 7!
+")6 EEEEE=
! !
!
!
(
!
9
=
!
, 5!
(
!
, ! !
!
!
!
!!
!
!
,
!
! * ' !
# +@ "-7 ,/!7 3 !*+ --: 97,,! #A *2 ,. + ," !@ "-7 +, ,,!/+!0 *"
,-+!
,(
) +!
,**% ! /. +3 --",
",-"
,// ,/,-"0!
3 ",-- /
ITA No. 557 of 2006 : 15 :
! /
, - . /!74 7" ** C " --" , ,-- ,/!0", !" / +- 3
3" +
,. +!3 . " , ! - 0!
67
7, ,! !0 + ,- -/4D",
,9 ,!
-7 + ** C " - " !4/
,7! ,, 7 ,/!," ,!!0 +: // ,- + 67
7, ,! !0 + - /!," ,!
!0. + - - " !
! // !
-- , 0 , 4 ,-D",
,9 ,!
-7 !04 !" / !04!
7 0/
3! " /!7 3, + + ," 0!!" !" / "D!
+ ," !,
, + +"!- " !!
/ /+/!0," ,, 4/ + /, +7! " " +- +,-!00,/
+7 /, 3+,/+3 89+!77,,! /!7 8 /!0, 7" + !
" + ,9 +" #AE !0 /!7 ,!
,9 9
,/ /!
" !9,- ,! " ", / +7! 9 1/, /, "!
,9 8 ,/!7 " / ,! #F;,,<;/< !0 + / " " + "", ,! 8 +> ,!, +: +,-+!
33+ /!7 ,! 3! "
,/ + /, /, !
/, + ,-+!
+" +/!7 ,!3,/!," ,!!0 + 67
7, ,!!0 +,--/4D",
,9 +,- "!, / !0
,/ /!
4,- ! +@ "-7 +2 7!
, +/!0 () .
$$/$*
"0 # +, ,,! /+ +" +!
,!7 # *2 ,! ," ! +@ "-7 +, ,,!/+!0
,-+!
, 1
2 01
ITA No. 557 of 2006 : 16 :
3% ! %% ?3, 0 +,@ "-7 +!
43+,
0
,- !@ "-7 /, "94*+ -- ## + 97,,! +,!
" !!
,!7
!3 " + ,/!0 ++ " ,/!0
,/ /!
7 4 9/ + 2+
/+ - , 0 "," !
9,0 / + 7. ,
@/ "?+ +- 9 3 +
,,",/ + 76 7 /!," ,! 3 , / !0 3! !
7!
!7,. , , ,9 ! 9 9,0 / " " !
,!" 9 3 /+ !0 + ,7 9,0 / ,! ! , 0 !0 + " ,7 , 0 !0 3+!0 , ! ,,
/+/. +/!," ,!7 9 !
,!" !3 "/+!0 + ,0, ,!,9 !"!! #$ * + -- ! + !
+" ," ! + @ "-7 !0 , ,,! /+ !0 *"
,-+ !
, 45 "' # ,***",%&# &$' +> ,!90!
+,-+!
" 0 /33+ 4
+/!," ,!
/, "94 +0!
+!0 +, + 3 !98/ ""0 !7 /!7 ,! !0 + !-6 7 /, -, ! + - ! "
!0 /!," ,!"!!
!0 ++ !"9 /!
/!," ,!0!
+!0 ,-+ !/!
! +/!743, + +,"!0 !" , 3! /!7,6-!
/+ 8 , C " " ! ;
!",/+
4<
C "++ 3 +"94 +3+!9!-"
+707,4++ 3 !", 3!/!7, !0 'AD6 + " =$&D6 + . +! -+ + ,,-7 1 !0
+! + 3 #= " F& + + /!7 8 00,/ /!7 + ",00 / 9 3 !0 + + /, " 94 " +- " +/!
!0/> ,, ,!!0 ++ "
ITA No. 557 of 2006 : 17 :
+7!-6 7/, -,"//!
",-4" 7
8+/!78 00,/ @/ +:/! ,! + ,/","!
3+!4
, !0 ++ +"94 +7"
+7! /, "94 +73 +/!," ,!0!
0
+/!
!,-, +!/!7, "3+,/+3 ,"/" 94 +0/ +3+!3 , / 3! " ,-0 !7 +9! " !0 3! /!7, " ," /" " /!7, * + -- ," ! +0!!3,-!9
,!!0 +, ,,!/+)6 ,
!
! ,
!
!
! !
,
5! !
!
(
!
( A
)
- !
!"#!$ !%! & ''(
!
!
!
!
!
* +@ "-7 "!!
!
*+ --:/! ,! ,0 " +- /!
+ ,/!0 ++ ,+,-+ ., ,,
"/!
+ ,/!0 ++ ",!
,"" !0
ITA No. 557 of 2006 : 18 : +/!
!,-, 7439
!0 ++ 0!
7 " , "" ! + + +7 +" 94 , ,,!/+. +/!
!,-, ,,/,"/!0 ++ +!",-" +!,"" 8, /?+ "4+" +- /!
3", ,/ ,-+ ,"" ,-+ !0!3 +,!0 ++ + /,. 0!
./ 4", ,- ,+90 !7 +!90!
#% +, ,,!/+ + 0
+@ "-7 ,-+ !
, 1
2 01
3% ! %%3+ ,, 3+" + ,/ /, "94 "!
3+! +" ! 9 + *-,- , / " 3+! +" - " " - !"- +,!3 "3!
+/!," ,!0!
!0 ++ !"
+/!," ,!3 + ,/0!
"- ,!!0 +!3 " 0!
.3!
!9 1, !//! 3+, /!7 ,- +/, -,!0 ++ +, ,,!/+",00 "3, +
,3!0 ,-+!
+00/ +!3 +*-,- , / /! "9!", /+7 "+" /+,-3! " !
+ !/,787 ,!!0 8!/, -, ,,-0 !7
+!0+ ? !
/!/ "3, + /+/ " 0!
. "!!
8 4!,,! - ",- +72 00,/, !!
.+!3 .
+ , ,,! /+ !0 + *"
,-+ !
"," !
+!" /!," ,!/!
9!
,!" ,0 +!
/!7 +/!/ ,!
3!", ,/ !"+, ,,!/+!0 ,-+!
"!
+ ,/,!09,0 / ,!"!
,!7 #& * + -- + ," ! + 0!!3,- !9
,! !0 *"+4
"+,-+!
,0' 6 '(
! 4- & %% )6
ITA No. 557 of 2006 : 19 : / , ! !
:3DD
5!
(+1DDD
, ! !
(
:$"<! 5!
( +1DDD
5!
: 3DD
5!
: 3DD, , !
!:3DD
5!
!
5!
!
(
, , !
!
5!
=
7!
!
!
5!
!
5!
!
5!
(
!
!
(
5! (
!
(* ,
! , ! < 7 !
!7 ,F34$G23,:"+2'<# !
/ !
!
!
5!
ITA No. 557 of 2006 : 20 :
!
H
H 5!
!
!
!
!
5!
!
(+1DDD
: 3DD
: 3DD ! !
5!
!
5!
! A /+3334$"
* #' +!9
,!"!!
!
*+ --: 97,,!+ , ,,!/+!4+" +/!
!,-, ,,/,"/ ,,- !7 +!",-
,/ 79 !0 + , + /!74 " /!
9 4/> , "!
0
" ,,/,"/!
/!> /!0 +!",-!0 +,"+ 0/ . +@ "-7 ,-, *+ --: 97,,! , ,,! /+ // ,3 1 94 + , ,,! /+ !0 !794 ,-+!
,
7; <+, ,,!/++" " )6 ,
! ! < 7 !
!7 ,F34$G23,:"+2 '<# !
/ !
!
!
5!
!
H
H 5!
!
!
!
!
5!
!
( +1DDD
:3DD
:3DD! !
5!
ITA No. 557 of 2006 : 21 :
!
5!
! A /+3334$"
* +, ,,!/+. 0!
.,0/ // ,3 , + / !0 /!7!, /!," ,! / 9 !
,!7 ,""
3!", ,/ /+/9!09,-/> , "!
0
" 4 !"!
/+" #( C 4.*+ -- ," ! +0!!3,-!9
,!!0 2 7 !
, 4 - 8- 1 4 6 ",* ,#$0 $ &)6
0
@)
-! !!
0
!
( (
!
( !
!
!
! ! '
) * + ,
F0:343 +3 '34D#3 :&"4G- . F'1DDD#1+2 ,: 2"$ 'A #G F'34&3# 323 ,: ++ 'A)#G #
-
!
!
!
! ! ! !
I
- !
!
J-
5!
! (
(
ITA No. 557 of 2006 : 22 : ,
(
!
! ! !
!
!!
32
!
!
A
!
! (
* /
, - !
; K33D& !
-,B
,
( ,
!
@)
- !
* ' !
! !
# ,! :
!
!
,
' * #
!
! !
=
!!
!
!
( !
!
!
)<
5!
!
,
!
! !
F
ITA No. 557 of 2006 : 23 :
'I8 .1&3 1DD2# 7!
!
,0 1 0, F0: 34"" D '34"# $ ,: 144G G ,!
. *
!!
!
-! 0 20
!
!
* #F +!9
,!, +4 -8- 14 6 ; </!
9 ",,! ,!*!
!
. + !9
,!"!!
!
*+ --: 97,,! 7 49/
- " , ! 9 3 +
, "! !
9,0 / /!," ,!"!
,! +7. + +!
,"D!
+ / "" 0 !7 "!,- ! "". + , . , , 90!
. 3 !
/!," "94 +2 7!
+2 7!
/!," +/ , 4 ",00 /! 8 ! "
" + !9
,!. , 3! " 9 / 4 " + @ "-7 , 4 - 8- 1 4 6 " #3+!+", +/> ,, ,!94 L!"0! ,! !",- ;L< !0 + + /, !0 7 ;!",-< C,7, " ; < 94 - " " A##AA( + /! "" + !!0 +- 3 !/> , '(E /!
!,-, ,!
/!74. /+,! C ";C< ,
,", / 4 +" + ! -+ !
"!3
7 /!7, + , C 3 !
,-+ . /+ . ! ,! ! /> , 0
+ , C + 7
/!/ "2/ ,!=;<;,<.74.
0 !0/, , , ", , ,7!
!!
+" @ "-7 ", "94 + +,0 ,/ "4 !
" " +" , / + !
3 /!/ " 3, + +!0+ "!
3, + +!0 , 763,+!
" 3, +/+!0 +, 7 /! ""+"9/> , "94
ITA No. 557 of 2006 : 24 : L 3 +" ,-+ "," !
0!3 0 !7 + + 6 /+ - M !7 !0 ,-+ . /+ . ,-+ !0 ,0 /D ,! /!
9 /!
" ,-+ , + - , /. +! -+ +!",-/!743! ".94
!0, + +!",-.+ , 00/ , / +7-7 !0, "!3
7 9,", ,., ","!
+ 0!
/9 ,-+ !"!!, ,3!0 + ,/,!0/!
!
-!
/, - +6 3+" - ! +!",-/!74+"!- ,-+ ", / , "!3
7 /!7, , + 7
!0 ,-. !7, ,! !0 ", / "7-7 ,-+ 3+" ,! !
,-+ +"9 /> , "94L + ! -+ +/> ,, ,!!0 + + "!
+ ! -+ 8/ ,!!0 ++ 6 /+- 0 + ,-4B"/+!0 ,- ", . 3+,/+ 3 -" ! + 9 4
0
". 2 7!
+") !"
!
-,B !!
344+ -,B !
!
L !
5!
.
,
L
0 ' !
: :L,0: !
#
@)
,
J- ! '
@)# 5!
!
:
!
* !
, 7 /! "" +" 9
0
43 +! ,!> ++ !0 ,! /!7, 3+" ",- 8 /, !0 + ! ,!. + 7 ! ,! "," !
/!
7-7 ,-+
ITA No. 557 of 2006 : 25 : #= +@ "-7 " . +!794,-+!
+"/!7
+/!/ ,!
0 + + 3!
"> ,, 0
!/+, +!9@/ !0/! 77 ,-
/ ,!9 3C"L " ,
,,/
/ ,! 3
0 !0 !
G 1 -I3+,/+ ,-+ " 7 /!
", +7 G/, I3, +, +7,-!02/ ,!#;%<!0 +/ +,-+!
+"
L/> , + + 3, +!
,-+ " 7 +L ! +!
+"/! "" , +"/> , " ,-+ + ! -+ + ! 3! +/!," ,!!0 +0/ / 2 7 !
/!7 +/!/ ,! +7
/!/ G -9 - 3. 0!
. 0! " 7
!0 0/ 3 !
0 !0K/, :!
+9434!0
0 + + + 2 7!
","!
+!" ,0, +"/!7 +/!/ ,! //!/ !0+ "!
. /! "9!9,0 / ,!" !
,!7 !0 + /!," ,! , " 7 4 9/ + 2+
/+ - "," !
, 0 9,0 / + /!," ,! > ,"" /!7! $A
,3 ,. 0!
. !
,/!, 3, + + @ "-7 , 4 7" #3!
" , . +,, ,3!0/+!0
+ " "- !0 + 2 7 !
, ( ) " #3+,/+" 3, + 4!, ,, 90!
? . 0!
. ,4 9! "94 +@ "-7 , 4 () " # $ + 0,
/! ,! 0!
" @/ " + ,9 3
,-+ ,/!7,- +/!/ ,! +/!," ,!! -+ !99,0 / "
!0!
,!" !3 "
,/ /!
ITA No. 557 of 2006 : 26 : ) ;<
!
$# *+ --/! "" ,4 , + / 3 ,0/ ! /!," ,! 49 0!
4 !0 + /!
, " , / 6&,/ ",-0!
+- /!
/! ,",/ && && !+,9, + , 779 !0 + 29!! - ! " + 0, 7. /!7,"!
,!3""/!
!"94 +70 !7", / 4!
,", / 4 --,- 43+ , ", , 4 9 , ,7, ! !
, /!7 ,!3, + +9 ,!0 +/!74, !B/1
29!!C "!
!7+ ,-4, .", / 4!
,", / 4.,4 /+9 , $$ !
!0 +, /! ,!. * + -- /! "" 779 !029!!- ! ","!
+ /+,/8
, !/
4! /+ 9 ,,/!7 ,!3, + +9 ,!0 !B/1
29!!C " +,
- ".+ ," ! +!
" +!74C3! "" "##A==#
/!
",- + 97,,!!9+0!0 +29!!- ! , 6, +00/
" !!6/!! ,!!0 + !B/1
- ! 100/ 0!
K,",-,B ,! !0 3 7 , 4 "
0 !0 /+!!-4 /!74. + !! !0 + 29!! - ! 7!
7 0/
!0 3 7 ,+! "9/! / "3"0 "+,//!
",- !+ ,",/ "7,,!!9+0!0 +29!!- ! , 3 + !B/1
- ! 3,!,!!0 /+!!-4" +29!!- ! ","!
+
/+!!-4 / 4 ! /!" / /+ 9 ,
. +, 97,,! //!
",- ! + . 9,+" + 29!! - ! +" !
/> ,
/+,/8
,0!
, , +, !3/ + !B/1
- ! +"!
0
+ 7 ! !B /1
29!! C " 2+ ! ," ! !9
,!, +!
" +!74C3! " +00/ "
ITA No. 557 of 2006 : 27 : / ,! #= !0 ,- 8/+- - ,! / . =($. /!74 , 3+,/+ + !6 ," +!",- , 7!
+ %AE ; , + / !0 !B /1
29!!C "3+ , + !B/1
- ! +"'AE+ +!",-< 3! " > , + 7,,!!0
1!0", !/
4!9 , , ", =($6(%. + !
7 > , + !B /1
- !
" /, > , 4!3 +,, +/!749 /!," ,- +
!0
/+!!-4.
1 !0 ", 7,
+ !B /1
- !
, 'AE !0 + > , 4 " + 29!! - ! !
+ 7 +, //!
",- !*+ --,",/ /+!!-43!0+,-+ "
9" , , + !B/1
- ! 3,!,!!0 7 2+ ! ," ! + !9
,! , + !
" !0 !74 C3 ! " , + ,! + 29!! - ! -" + ,7!
3 7 ,"/! 79"7!
+,7!
"7/+, 43 /+" 94 +/!74, + !B/1
29!!C "0 !7 + !B/1
- ! + !B /1
- ! +" ! 00/ 3 1 0!
,",-,B ,! !0 3 7 , 4 " + !B /1
- ! +"
1 ! + 29!! - ! 7," 4 "" ! ,7!
" , $% ? 3, 7 + 779 !0 + 29!! - ! "," !
! /+,/8
, ,7, 9 , +7 + "! !
" / &&7,- ,!0 ,7!
/ !!
/ && + 779 !0 + 29!! - ! 0 !7 ", / 4 !
,", / 4 --,- , ,7, 9 , !
, /!7 ,! 3, + + 9 , !0 !B /1
29!! C " + !,! !0 /+,/ 8
, > , 7 0/
!" / ,!
/ 4 !--,49 ,,7, !!
, /!7 ,! 3, + + 9 , !0 !
+ 7 K--: , !0 3,"
ITA No. 557 of 2006 : 28 : ,7!
+779 !029!!- ! !
4!!0 +7/! "--, /+ 9 ,7 4, +4/! ",
/> , /+,/8
, !7!
4 +4/! " , !@!,
3, +!
4
+ /+,/ 8
, ! !" / ,7, -!!" " ! -- , ,7, /!7 9 ,+7 0/ !!0 +779 29!!- ! +" /+,/8
, +7 !7 0/
+-!!" , 4,
+, 9,, 4 !--, /+9 ,,!
"" ! +, !,- /+,/8
, > , "0!
,- /+9 , $& && "," !
+ 779 !0 + 29!! - ! 7 4 0 !7 ,- +, /+,/ 8
, 0!
+ ! !0 --,- 43+ , ", , 4 9 , ,7, ! !
, /!7 ,! 3, + 9 , !0 !B /1
29!! C " +7 0 !7 --,- 43+ , ", , 4 9 , ,7, ! !
, /!7 ,! 3, + 9 , !0 !B /1
29!! C " !
! + 4 , ", / 4 !
,", / 4,4 /+9 , , 3! "03, +, 79, +/ 0 +779 +29!!- ! !
4!0 +7, , /+9 ,. +4/! "+ 9 "0 !7"!,-!, ,3!0 / && $'
/" 3, + +,. * + -- 97,
/ && "," !
,"0!
4 40!
9 /+ !0 $( +,, 4,
"!!
,",/ / &&, 7,-!
3, +!
4 0 39 /+!0/ &&. + !B /1
- ! !
+/!74, !B/1
29!!C "/! "+ 0," / ,! ! +7 0 !7 "!,- ! 94 0!
/,- + - /!
+4 /! " ! + ! -+ "7- 0!
+ 9 /+ !0 + /!
+ /! ,! / &&,7,-"!0! ,. 0!
. @/ "
ITA No. 557 of 2006 : 29 : $F *+ --0
97,
,0/ 39 /+!0
+- /!
+779 !029!!- ! +" 1!
D!/+" !7!0 +7!4!0 !B/1
29!!C " $= +,,!,
7,- 39 /+. 94 0 3! " !
,",/ + / 3 +7 !
9!- !
3 , "" !9/ " !* 49/ !B/1
29!!C "74!
0,"4/ ,! !0!
/ +- /!
, "!!
/ ,4 0!!3 + /!
3 +7 " 3 !
, "" ! 9 / " ! +474+ 0 ,"0 !7"!,-!0!
, 4!0 ," ! %A +/! ,! +/!
D- /!
3 +7. 9!- "3 7 !9/ " !.,9,"94 !0/ !
" , + !
" !0 + !74 C3 ! ". ", +" , 9 3 +
,,/ ",- - " +8,! !- 77.
0
/+!!-4. 0, !0 + !B /1
- ! ! -, /!77, 7 ! 9 4 9/1 + " , " ,/. 0 > !0 / ,- 94 +, 7. ,- ,7!
!0
,0 " /!
+ ! -+ + !B /1
- ! " + 0, !0 + !B /1
- ! 1 0!
,",-,B ,! !0 3 7 , 4 "
0 !0 /+!!-4 ! !B /1
29!!C " ,7!
", + !0
"7 1 !B/1
29!!C "+"8/ , ,//0!
/!", ,! !0
" 7 1 G N6J I "
"7 1D
"7 0!
8!
" "!7 ,/ + 29!! - ! -"4 3, + + 1!3"- " /! !0 + !B6/1
- ! .
-, ", !3
"7 1G N6/1
2 C*;C9<I,
/ !0"0,-,/#'"
"7 137,4 ", "!7 ,/ //!
",- + !B /1
- ! . + ,/ ,! 0!
ITA No. 557 of 2006 : 30 :
-,
,! !0
" 7 1 3 7" 3, +!
,!
/! ,! " , !9@/ -,
,! !0 !B /1
29!! C " ,7 4 3, +"
3 , ,/ ,! ! + /!", ,! !B /1
- ! 3! "
-, ,
"7 1,, !37" !B/1
29!!C "3! "9 7,
!/! , !
"7 1,",//!
",-4.34 !B/1
29!!C "3, +"
3 +,/ ,!0!
-,
,!" +,"
J29!!/!0, 7" +7 % + 3 !!-"-!
, ,!, +, - "+ ,!
+,-
!,",/ 3! /+", 0/ . !9 ,! 43 ", +,,/ 0 !7 +0/ +", , 0/ ", + ,! 0,"90!
+!74C3! "3+ +2+
/+- 3 ", !7 /+ 740 + " 2/ ,!A6 90!
+ +, ,-+ !
, !9 ,! 4 , ,3 !0 + ,! ",
,! / 3 ,
!" /" 94 +
, , + 2+
/+ - 4!07,, 3, + /+7
3! "1!3 +- ,/!, 3, +8 /,0!
! ,!!0 /+", ,/!
!
7
+- /!
, !
, /+/ + ,!
+,- !,",/ +43 ,
!" /" ! !," 8 %# + 97,,! 3!/!," ,!0!
+- /!
, 0!
@/ " ) %$ *+ --0
97,
+!
" ,
,7 /+ + ,9 0," 1, !/!," ,! 7,- 7 !0 AAD6 /! " 9 /!," ! 9 + /!," ,! 0!
+ - /!
/! ," , + 2+
/+ - . 3 ! 0
9,0 / ,! " !
,!7 !0 + /!," ,! !3 " /+ !0 +
ITA No. 557 of 2006 : 31 : /!
D- /!
/! ," , ,! / !0 + 2+
/+- 2+ 97,
7 +9
,9 !
+/!
D- /!
/+, &'.&("&F !
, %% +, 97,,! 7 9 @/ " 0!
3! !. /!"7!
,7!
+ +0,
%&
4. ,-+ 4!, "!
94*2 ,. +,/! ,!3!
," 94 + ,- !00,/ !
3 , ," 90!
+ ;< !
90!
+ ,9 *+ --/! "" +,, > ,!!03 " +
7 . 0!
.! -+ !9!3" , +!, 90!
+! -+ , 3 !
," 90!
+ ;< " + ,9 * 2 ,: !9@/ ,!,30! ""+ ,!@ ,0,/ ,!0!
!3,- +
, +,!, 0!
+0,
,7, +90!
" +/! ,! 9 ,"90!
+;<!
90!
+ ,9 . !" /! " /!/, 94+ +" 3 !, 03!3 + ,
+, /! ,! 90!
3 3! " 9 " ,- !" !!
, 4!0"" /,- ,"/ !"3, + +7+,3! "9 0,
!" %' 2/!"4."7!
,7!
., +0/ +,/., 3! " 71!",00 / ,033 !// *+ --: 97,,!* + --749 ,-+ +8 ,!
+,- !,",/ +!
/!
D- /!
3! " 9 7! ,4 3!
+ " !7 7! 4 ! -+ !9
,9 +7!3 . +,3! "!
9 9
/ > ,!!03!
7 ,0 / !3+,/+ /! "9! 3 + ,9 // !0 ++ 'A#% + + ,9 . 0!
. ,-+ 4+" !0 AAD6!
,!" !3 "
ITA No. 557 of 2006 : 32 :
+- /!
3!
/+ !3
, 0 /?- + +
"//! " ++ , + ",00 34+ ,! A'=A + 3
" ! +9,!0 %!02/+" 6!0
+? +8/ .=&(M!0 +9 ,3+!. F=A + !
+4,"9," =$#! +9,!0 !02/+" !0 ? + 8 / , 9 1 + , !
+,- ! ,",/
,! !
3 ",+! !
70," 0!
4 ! !
, 4 +,- !,",/ , , ,90!
4 ! ,,7!
!
, ! - ! " !0 90!
-, + ,9 : // /!0 ,! !
+ +7 + !
"
++ %( 7,- !7 ,!, !9
,9
+ /!
D- /!
/! ," , + 2+
/+ - !
+ &&. , 3! " 71 ! ",00 / + !
,!7 !0 7!0 AAD6!
%AAD6 !3 "/ &&3! ", 4 9 !9 ? - 3, + + 0,",-!0 + ,9 ,
,3 !0 + 9!
0/ + !
,!7 !0 #&E !0 !0 +
!3 " +- /!
3!/!
9, %F +/, / 7 /.3"!!
/!," , ! , !, 0 3, + +"/,,!!0 + ,9 ! +,- ! "!
"!3 +,1, / 4
7, +7
+ ,9 0!
0
!
,!7 ) .
! " ## $% %= 2/ ,! #F;,,<;< ;9< !0 + / ," ! 94 * + --
" " )6
ITA No. 557 of 2006 : 33 : + 0 2 02
, 34 0 2,
/ 0 2, + + 2 , 0 , / , 2 / 2 + 0 0 + ,2 +
+ 0 0 6 2/ 2 + 0 0 + ,2 +
+ 0 M &A 2/ ,!#F;,,<;<;9< ,,/9 +0/ +,/ +779 +29!!- ! +"!4%AE!0 +> , 4+ , !B /1
29!!C "+, + +!",- !- ","!
-, +7
,-+ ! 7- + 3+! !
9 ,4 + 3+! !0 + 00, !0 !B /1
29!! C "+ 7 !0 + /!9!
,! - ,7!
" + /!9!
,! - . + - "7,,
,! " 7-7 !0 !B/1
29!!C "3 !9, ++"!0 3! *-,-D8/ , / 3, +> !3 .! !9!7, "94 !B/1
- ! " +!
!9!, "94 +29!!- ! !
+ - ! 3 " !!7, + , / /+ ,,7!
!!
++, 7!0 +! "!0, / 334 !9!!
+ !7, !0 + !B /1
- ! " + +, 7 3 !+ / ,-
, / /,0,"7
.!"/,,!/! "9
ITA No. 557 of 2006 : 34 :
194 +! "!0, / !
94 +/!748/ 94 + ,7! /! !0 +, / /!
9,". 0!
. +29!!- ! 7-" +3+!!0 +00, !0 !B/1
29!!C " & +, ,3!0 +7
., ,!
/ 4 !/!," 3+ / ,!#F;,,<;<;9<!0 +/ ,, ,3!0!
/
,/ ,"94 *2 , &# * + -- ,-+ 4 - " / ,! #F;
< /7 , ! 0!
/ 3, +00/ 0 !7AA%#AA$" 0!
."!!
4 + / 3+,/+
, +7 4 ==%6=& &$ +/! ,!. 0!
. +/!," ,!0!
+- /!
,&&!0 +2+
/+- ,9 8 " / ,!#F!0 +/ ,. 0!
. @/ " &% + > ,! !0 3. , 0!
3 " -,
D ",0 !" D+ //!
",-4",7,"9 3, +!!
" !/!
(S.J.VAZIFDAR) ACTING CHIEF JUSTICE (G.S.SANDHAWALIA) JUDGE 15th May, 2015 Whether to be referred to the reporter or not. √ Yes No.