Law: Income Tax Ordinance, 2001

Section: 122,122(5A),67,221

[Income Tax Ordinance (XLIX of 2001)]........Sections 122(5A), 67, 221,,. Rectification/Re-call,, Mistake,, The instant Miscellaneous Applicant was filed by the department seeking rectification/re-call of order dated 13.04.2011 passed by this Tribunal in I.T.A. No. 652/LB/2010 for the tax year 2004 and certain grounds were raised by him,, Since the issue raised by the department had already been dilated upon in the said order of the Tribunal and the department could not point out any mistake from that order, therefore, the miscellaneous application of the department was rejected,, ORDER This miscellaneous application is filed on behalf of the Revenue/department. The Revenue/applicant seeks rectification/recall of order dated 13.04.2011 passed by this Tribunal in ITA No. 652/LB/2010 for the tax year 2004. The following grounds have been raised by the revenue:- 1. That the facts in brief which became the basis for addition by the taxation officer are that during the course of amendment proceedings u/s 122(5A) of the Income Tax Ordinance, 2001 it was discovered that a sum of Rs. 1,252,380/- was receivable from the associated company by the respondent/taxpayer company also claimed an amount of Rs. 93,080,179/- as expenditure under the head financial charges for availing the bank finance facility, so in terms of section 67 of the Income Tax Ordinance, 2001, the respondent/taxpayer was confronted as to why the proration of financial expenses to the extent of Rs.1,252,380/- being advanced as loan, may not be made, for adding back or in other words for disallowing out of total financial expenses for the reason that these are not the expenses for the purposes of business a specified under section 67(1)(b) of the Income Tax Ordinance, 2001. 2. That the honourable Tribunal has erred to uphold the findings of the learned Commissioner (Appeals) who have failed to dilate upon the issue of proration of expenditure, as well as, why the receivables from the associated companies, being the amount advanced as loan, do not come within the statute wordings "to some other purposes" (Reference is to be section 67(1)(b) of the Income Tax Ordinance, 2001). 3. That learned Tribunal as a…

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