Law: Income Tax Ordinance, 2001

Section: 15(6),113,113(1),113(1)(d),113(2)(b),113 (2)(c),113(3),120,122(3),122(5A),131,Par tI,DivisionII oftheFirst Schedule

Income Tax Ordinance (XLIX of 2001)- -Ss. 113, 120, 122(3)(5-A), 131 & First Schedule-Charge of Minimum Tax on aggregate turnover from rent of property and all the sources of taxpayer-Amendment of Income Tax Return-Income Tax return filed by the taxpayer declaring income, was treated to be an assessment order in terms of S.120 of the Income Tax Ordinance, 2001-Return was revised declaring loss, which was treated to be an amended assessment order in terms of S. 122(3) of Income Tax Ordinance, 2001-Adjudicating Authority, on scrutiny of record, noticed certain discrepancies which rendered the amended assessment order as erroneous and prejudicial to the interest of Revenue and warranted further amendment under S.122(5-A) of Income Tax Ordinance, 2001 and the same was further amended accordingly by making certain additions-Taxpayer being aggrieved, filed appeal before Appellate Authority, which upheld the treatment with regard to taxability of income from property on yearly basis and proration of expenses while on the issue of calculation of Minimum Tax Liability, Appellate Authority directed to charge minimum tax on turnover from all sources after giving the effect of tax paid on property income- Principal argument of the taxpayer, accepted by the Appellate Authority, was that rent was also a "source" to be included in "turnover"-Validity-Appellate Authority had fatally erred in accepting the argument by reading the word "sources" used in the last line of subsection (1) of S.113 of Income Tax Ordinance, 2001, in isolation, instead of reading it in conjunction with the definition of "turnover" given in subsection (3) of S.113 of the Income Tax Ordinance, 2001-"Sources" referred in the last line of subsection (1) of S.113 had been specified in cl. (a) through (d) of subsection (1) of S.113, and any amount, not listed therein, could not be treated as "turnover" for the purpose of S.113-Legislature had logically and consciously confined the "sources" to a single 'Head' i.e. 'income from business'-Person would pay "Minimum Tax" instead of "actual tax" payable under Division II of Part 1 of the First Schedule, and not tax payable under Division VI, Part-I of the…

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