Law: Income Tax Ordinance, 2001

Section: 113,131,154,154(4)

Income Tax Ordinance (XLIX of 2001)----Ss. 113, 154(4) & 131---Chargeability of minimum tax---Addition made on account of reversal of provisions for bad debts---Chargeability of tax on rebate---Department in appeal against Commissioner (Appeals) had challenged the order on three grounds: First ground related to chargeability of minimum tax under S.113 of Income Tax Ordinance, 2001; second ground related to addition made on account of reversal of provisions for bad debts and third ground related to the chargeability of tax on rebate given to the taxpayer on export---First two grounds had already been decided by Appellate Tribunal in favour of the taxpayer---Departmental Representative conceded that said two issues had already been decided in appeal relating to other tax year---Regarding third ground, Representative of the department had submitted that the rebate received by the taxpayer in a relevant tax year, being an income was liable to be taxed---Validity---Rebate in question had arisen from the export by the taxpayer---Provisions of subsection (4) of S.154 of Income Tax Ordinance, 2001, very vividly spoke in support of the arguments made by representative of taxpayer---Representative of department could not dispute that rebate had arisen from a transaction's export, which was covered under S.154 of Income Tax Ordinance, 2001---Income of rebate, in circumstances, would fall within Final Tax Regime and had already been taxed---In presence of very clear language of law, there was no need to take any support from a Circular or S.R.O.---Appeals by the department on that ground also failed. PTR No.218 of 2005 dated 28-5-2009 and ITA No.124/IB/2007 dated 4-8-2009 ref. THIS ORDER PASSED BY: Department is in appeal against Commissioner (Appeals) Orders Nos. 21 and 22 dated 31-12-2009 relating to tax years 2004 and 2005. Department has challenged the order on three grounds. 2. First ground relates to chargeability of minimum tax under section 113 of the Income Tax Ordinance, 2001. The Appellate Commissioner has relied on the judgment by Lahore High Court, Lahore in PTR No. 218 of 2005 dated 28-5-2009 and allowed the appeal. Second ground relates to addition made…

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