Law: Income Tax Ordinance, 2001

Section: 33

Law: Income Tax Ordinance, 1979

Section: 15,15(d),22,22(a),26(c),30,Part-IIof5thS chedule

JUDGMENT The Judgment of the Court was delivered by Abid Aziz Sheikh, J. - This judgment will decide instant reference application as well as PTRS No.68, 69, 70, 71, 72, 73, 74, 75 and 76 of 2004 as common questions of law and facts are involved therein and the reference applications are also against the same consolidated order between the same parties. These applications by way of reference are filed u/s 133 of the Income Tax Ordinance, 2001 ("Ordinance") against the order dated 27-2-2003 passed by the erstwhile Income Tax Appellate Tribunal, Lahore Bench, Lahore ("Tribunal") regarding assessment years 1990-91 to 1999-2000. 2. The following common questions of law are urged at the time of arguments by learned counsel for the applicant:- i). "Whether on the facts and circumstances, Income Tax Appellate Tribunal was justified to direct that interest income of the applicant was to be assessed under section 30?? ii) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was justified to direct that interest income be assessed under Section 30 whereas section 26(c) of the Income Tax Ordinance, 1979 lays down that income of the applicant is to be assessed in accordance with Par-II of 5th Schedule? 3. Brief facts are that the applicant is a statutory corporation under the management and control of the Government of Punjab and is engaged in exploration and extraction of mineral deposits in the Province of Punjab. For the relevant assessment years, the assessing officer assessed the interest income earned by the applicant/assessee from financial institutions u/s 30 of the Income Tax Ordinance, 1979 ("repealed Ordinance"). In appeal before the Commissioner Appeals, the applicant/assessees stance was that income earned as interest from financial institutions during the course of and incidental to business of developing, operating mines and selling of mineral products is not income from other sources but actually it is income from business. Therefore, the same was to be assessed in accordance with Part-II of 5th Schedule read with section 26(c) instead of section 30 of the repealed Ordinance. The Commissioner Appeals on 11-02-1998 set aside…

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