Law: Income Tax Ordinance, 2001

Section: 12(2)(e)(iii),21,24,120,122(5A)

Income Tax Ordinance, 2001 (XLIX of 2001) - Sections 24, 120 & 122(5A)-Amendment of assessments - Income Tax Return filed by appellant declaring net loss was treated as assessment order u/s 120 - Addl. Commissioner (Audit) on finding that assessment already completed u/s 120 was erroneous as well as prejudicial to interest of revenue issued notice to taxpayer - Reply to show cause notice was not found satisfactory and total income of appellant - Company was adopted at higher pedestal - On appeal, Addl. Commissioner condoned delay in filing appeal and treated voluntary separation scheme expense as intangible asset - Validity - Whether concept of intangible as mentioned in Section 24 of Ordinance has not been property construed and emphasis of forums below remained on advantage or benefit of expense ranging over period of more than one year - Held yes - Whether expenditure incurred for purchase of any of kind of properly mentioned in first part of Section 24 and has a useful We of more than one year is to be treated as intangible and expression "and any expenditure" is not independent part of definition - Held yes - Whether expense under voluntary separation scheme being included in amounts, received by employee on termination of employment whether voluntary or under agreement including any compensation under golden handshake scheme payments falls within definition of term salary, as contained in Section 12(2)(e)(iii) of Ordinance, carries weight and such salary expense is allowable deduction and can be disallowed only if it is hit by mischief of Section 2l of Ordinance viz for non-deduction of tax there from or its payment above specified threshold - Held yes - Whether attempt for dragging expense incurred in VSS into amortization would be far fetched interpretation of law which cannot be accepted - Held yes - Whether condonation of' delay which has been agitated by Department before Tribunal does not require any interference as discretion so exercised by Appeal Commissioner is unexceptionable - Held yes - Whether forum below are not justified in treating Voluntary Separation Scheme expense to be intangible u/s 24 0f Ordinance - Held yes. The very concept of…

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