Law: Income Tax Ordinance, 2001

Section:

[Income Tax Ordinance (XLIX of 2001)]........Appeal-.- Assessment-.- Appellant was a public company, running a Sugar Mill-.- Addition-.- Validity-.- Market Committee Fee-.- Claim-.- Deduction-.- Add back-.- Case was remanded to Taxation Officer with the directions that the details provided by the tax-payer may be verified and if any item is found not to have been paid since last three years, the same may be disallowed after providing a reasonable opportunity of being heard to the tax-payer-.- Assessee's appeal in regard to the remission of loan was rejected-- (b) Income Tax Ordinance (XLIX of 2001)--Appeal-.- Assessment-.- Addition-.- Deletion-.- Claim-.- Depreciation of machinery and plant-.- Deduction-.- contention of the D.R is that this amount of Rs,5,813,322 is of revenue nature and liable to be disallowed-.- The A.R of the taxpayer vehemently contested this issue on the ground that the amount recoverable was for interest capitalized and it cannot be subjected to tax-.- The departmental appeal was rejected-.- ORDER These cross appeals have been filed at the instance of the 'Public Company' running a Sugar Mill and by the department relating to assessment year 2000-01 against order No. 18 dated 26.03,2011 of the learned Commissioner (Appeals), On behalf of the taxpayer's A.R Mr, Manzoor Hussain Mir, FCA attended the hearing while the department was represented by Mr Muhammad Tahir. The case was discussed with them and appeals are decided as under: TAXPAYER'S APPEAL OF TAX YEAR 2000-01 2. The first issue raised by the learned AR is that learned Commissioner (Appeals) was not justified to confirm addition of Rs.4,450,804 made by the learned Additional Commissioner for the reason that 'market committee fee' was not paid within three years from the year in which expenditure was claimed as deduction. The A.R of the taxpayer contended that both the Taxation Officers and the learned Commissioner (Appeals) have not properly appreciated facts of the case and the amount added-back is unjustified. He placed before us year-wise breakup of 'market committee fee' payable which is reproduced below and allegedly the same was also produced before the authorities below who…

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