| Citation(s) |
|---|
| 2012 SLG 10 2012 SLD 10 (2012) 105 TAX 264 2011 PTD 2440 |
Income Tax Appellate Tribunal
I.T.As. Nos.838/LB and 857/LB of 2009, decision dated: 1stDecember, 2010, hearing DATE : 29-04-2010
SHAHID, JAMIL KHAN, JUDICIAL MEMBER AND ABDUL RAUF, ACCOUNTANT MEMBER
M. Iqbal Khawaja for Appellant (in I.T.A. No. 838/LB of 2009). Zulqurnain Tirmizi, D.R. (LTU) for
Respondent (in I.T.A. No. 838/LB of 2009). Zulqurnain Tirmizi, D.R. (LTU) for Appellant (in I.T.A. No. 857/LB of 2009). M. Iqbal Khawaja for
Respondent (in I
I.T.As. Nos.838/LB and 857/LB of 2009, decision dated: 1stDecember, 2010, hearing DATE : 29-04-2010
SHAHID, JAMIL KHAN, JUDICIAL MEMBER AND ABDUL RAUF, ACCOUNTANT MEMBER
M. Iqbal Khawaja for Appellant (in I.T.A. No. 838/LB of 2009). Zulqurnain Tirmizi, D.R. (LTU) for
Respondent (in I.T.A. No. 838/LB of 2009). Zulqurnain Tirmizi, D.R. (LTU) for Appellant (in I.T.A. No. 857/LB of 2009). M. Iqbal Khawaja for
Respondent (in I
Messrs SHAMS TEXTILE MILLS LTD., LAHOREvsC.I.T., L.T.U., LAHORE and another
Law: Income Tax Ordinance, 2001
Section: 39,18,21,34(5),153,67,
Law: Income Tax Rules, 2002
Section: 13
Law: Income Tax Ordinance, 1979
Section: ThirdSched.,Part-I,107AA
(a) Income Tax Ordinance (XLIX of 2001)----Ss. 39 & 18---Income from other sources---Deposit of surplus fund in bank account---Interest income---Income from business---Interest income was claimed to be an integral part of business income on the ground that surplus funds deposited in the bank account were generated from business of the company; and logically interest income could only be treated as an integral part of business income because the amounts which were deposited in the bank account from time to time were generated from the business activities of the company---Validity---Interest income earned from investing the surplus funds in bank deposits was distinct and separate from the business income and had rightly been ,assessed as income from other sources.I.T.As. Nos. 4696, 5467/LB of 2003; 2009 PTD 331 and C.I.T. v. Liquidator Khulna Bagerhat Railway Company 1962 PTD 415 ref.Genertech Pakistan Limited v. I.T.A.T of Pakistan 2004 PTD 2255 and Uchpower (Pvt.) Limited and others v. I.T.A.T. of Pakistan ' 2010 SCMR 1236 = 2010 PTD 1809 rel.(b) Income Tax Ordinance (XLIX of 2001)-------Ss. 18 & 39-:-Income from business---Other income---Sale of scrap-Assessee contended that sale proceeds of scrap were an integral part of the business income and should have been clubbed with the local sales or credited to the cost of goods sold--Validity---Taxation Officer had treated sale of scrap as "other income" which was not 'either fair or according to law---Sale of waste, goods of sub-standard quality produced during the manufacturing process and drums containing dyes and chemicals etc. and fixed assets were the activities which were inextricably linked to the main manufacturing activity of the company---Sale proceeds of such items were the business receipts of the company and an integral part of the business income---Appellate Tribunal directed that sale proceeds of scrap be treated as business income of the company instead of "other income".2005 PTD (Trib.) 1208 and 2006 PTD 499 rel.(c) Income Tax Ordinance (XLIX of 2001)-------S.21-K --Punjab Employees' Special Allowance Payment Act, 1988 (II of 1989), Preamble---Employees' Cost of Living Relief Act, 1973 (I…
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