Law: Income Tax Ordinance, 1979

Section: 50(4),62,65,80C,80D,132,143B,135,53,72,8 1,50(4)(a)

ORDER As per Rasheed Ahmad Sheikh, Judicial Member. - By this single order we propose to adjudge these seven appeals, six by the assessee, which are directed against the consolidated order passed by the CIT (A), Zone-II, Lahore dated 5-9-2001 for the assessment years 1993-94, 1995-96 to 1999-2000 and one by the Department against the order of the first appellate authority dated 8-8-1994 for the assessment year 1992-93. 2. The assessee's appeals for the assessment years 1993-94, 1995-96 and 1997-98 have been instituted against the order made u/s 62/65 of the Income Tax Ordinance, 1979 while for the assessment year 1998-99 pertains to the order passed u/s 62/132 of the Income Tax Ordinance, 1979. So far as the assessment year 1999-2000 is concerned, the order appealed against has been passed u/s 62 of the Income Tax Ordinance, 1979. 3. The question, which has been posed for our consideration is as to whether the provisions of section 80C read with section 143B of the Income Tax Ordinance, 1979 are attracted to the facts of the present case or not. Relevant facts leading for disposal of these appeals are that the assessee-company sells its products through sale agreements executed with National Fertilizers Marketing. Ltd. (hereinafter referred as NFML), which is an Organization, owned and controlled by National Fertilizers Corporation (Pvt.) Ltd. (hereinafter referred as NFCL). It is pertinent to mention that separate and independent agreements are being executed year after year in between NFML and the Pak Arab Fertilizers (Pvt.) Ltd. (PAFL) the present assessee. For the year under appeal, statements u/s 143B of the Income Tax Ordinance, 1979 were filed which stood accepted by the department. Subsequently, the case was re-opened in respect of assessment years 1993-94 and 1995-96 to 1997-98 rejecting the agreements executed between the parties. Assessment year 1998-99 was the final year in which the department had rejected the claim of the appellant regarding relationship of seller and purchaser between the two companies i.e. PAFL (the assessee) and NFML Accordingly, the assessment was made u/s 62/135 of the Income Tax Ordinance. The basis advanced for assessing…

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