Law: Income Tax Ordinance, 2001

Section: 113(1)(c),113(3),113(4),120(1),122(5A)&1 22(9)-Clause102A ofPartI2nd Schedule-Clause11A ofPartIV of2nd Schedule&clause132 ofPart1 of2nd Schedule

Income Tax Ordinance, 2001 (XLIX of 2001) - Sections----113(1)(c), 113(3), 120(1), 122(5A) & 122(9) - Clause 102A of Part I 2nd Schedule - Clause 11A of Part IV of 2nd Schedule & clause 132 of Part 1 of 2nd schedule - Amendment of assessments - Filing of return by electricity supply Company declaring losses which constituted deemed assessment ids 120(1) of Ordinance - Assessment found erroneous as well as prejudicial to interest of revenue - Show Cause Notice issued for amendment of assessment - Appeal filed by appellant challenging Show Cause Notice decided against appellant by CIR(A) declaring that appellant was liable to minimum tax - Exemption from subsidy paid by government to power distribution companies disallowed. Validity (1) Whether case law relied upon by AR is in context of chargeability of sales tax on amount of subsidy which represented subsidy was also not charged from consumers - Held yes. (2) Whether issue arising from appeals and pleadings at the bar is whether subsidy received by appellant as tariff differential is characterizable as "gross receipt" within meanings of phrase "turnover" envisaged in sub-section (3) of section 113 of Ordinance - Held yes. (3) Whether careful analysis of expression "turnover" used in subsection (3) of section 113 has transpired that "turnover" means gross receipts, gross sales derived from sale of goods - Held yes. (4) Whether from given definition of "turnover" it follows that subsidy received by appellant is essential component of gross receipts from appellant Company's sale of electricity to consumers and be that as it may, constitutes integral part of turnover which is chargeable to minimum tax in terms of section 113 - Held yes. (5) Whether appellants whose gross receipts of subsidy which is otherwise exempt from tax under clause (102A) of Part I of 2nd Schedule would attract application of minimum tax because of appellant's declaration of loss - Held yes. (6) Whether appellant Company is not qualified for exemption from minimum tax because criteria for exemption under clause (11A) of Part IV of 2nd schedule is applicability of clause (132) of Part 1 of 2nd schedule - Held yes. (7) Whether clause…

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