Law: Income Tax Ordinance, 2001

Section: 113

[Income Tax Ordinance (XLIX of 2001)]......Section 113-.- Income Tax Ordinance (XXXI of 1979), Section 80D-.- Appeals filed by department against consolidated order, identical issue was involved-.- Turnover-.- Levy of Tax-.- Gross Income-.- It was held by the Tribunal in case vide order dated 04/10/2010 that turnover for the purpose of levy of minimum tax would comprise exchange income of the exchange company-.- Tribunal decided not to interfere with the impugned order-.-Appeals preferred by the department were dismissed-.- 1994 PTD 758 quoted. ITA No. 456/IB/2010 decided on 04/10/2010 ref. ORDER By this common order, we intend to dispose of both the titled appeals preferred at the instance of Revenue, since the two appeals arise out of a consolidated order dated 18-06-2009 and also because the identical issue is involved therein. 2. Summary of the relevant facts, as obtaining on record, is that the respondent is agent of M/s Unilever Pakistan Ltd. and sells its product on commission basis. For the two years under consideration net loss was returned at Rs.(1,210,594) and Rs.(1,413,268) respectively and liability u/s 113 of the Income Tax Ordinance, 2001 (the Ordinance) was calculated, on declared margin/gross profit. The learned assessing officer disagreed with the method of calculation of minimum tax u/s 113 of the Ordinance. He noted that the respondent/taxpayer was entitled to commission at the rate of 8% of sale value. The respondent-taxpayer had declared his gross profit at Rs. 13,493,351 and Rs. 19,382,573/- for tax years 2003 and 2005 respectively. The assessing officer worked back to arrive at the figure of gross receipts at Rs. 173,098,099 and Rs.242,282,163/-respectively to which rate of 05% was applied.…

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