Law: Income Tax Ordinance, 1979

Section: 30,30(2)(b),136,136(1),Clause(176)Second Sched.

Income Tax Ordinance (XXXI of 1979)- -Ss.30, 136 & Second Sched.-Reference to High Court-Income from other sources-Interest income-Applicability of S.30 of the Income Tax Ordinance, 1979 to "interest income on business activities"-Scope-Question before the High Court was whether "interest income earned by taxpayer on security deposit which was held with a Bank for purpose of obtaining Bank guarantees was part of the business income and exempt from tax and accordingly not taxable under S.30 of Income Tax Ordinance, 1979"-Held, that S.30(2)(b) of the Income Tax Ordinance, 1979 dealt with "income from the sources" and was only applicable where investment of money by a company had not been made as part of its business activity but where such money had been invested by a company in its business, as in the present case, profit generated on such investment, for all intents and purposes, would be considered to be profit earned from business and not from any other source-Reference was answered, accordingly. Luck Cement Ltd. v. Commissioner Income Tax 2015 SC MR 1494 rel. THIS ORDER PASSED BY: AYESHA A. MALIK, JUSTICE:---.--- This is a Reference under section 136(1) of the Income Tax Ordinance, 1979 ("the Ordinance"). 2. Following questions of law are pressed for our opinion, which are asserted to have arisen out of order dated 20.11.2003 passed by the Income Tax Appellate Tribunal, Lahore Bench, Lahore ("Appellate Tribunal"): QUESTIONS OF LAW 1. "Whether on the facts and circumstances of the case, the learned ITAT was justified to hold the interest income earned by Appellant in question on security deposit held with bank for obtaining guarantee is part of assessee's business income and exempt from tax whereas interest income is the income under the head income from other source assessable under section 30 of the Income Tax Ordinance, 1979?" 2. Whether on the facts and circumstances of the case, the learned ITAT was justified to delete the charge of Worker Welfare Fund on interest income as well as presumptive whereas the same is chargeable on the total income as per section 2(f) of WWF Act, 1971?" 3. Notice was issued to the Respondents and in pursuance of which…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492