Law: Income Tax Ordinance, 2001

Section: 2(29C),148,148(1),148(7),148(7),148(a),1 48(b),148(8)

Law: Income Tax Ordinance, 1979

Section: 80C(2)(ii)

ORDER The titled miscellaneous application has been preferred at the instance of the taxpayer seeking rectification of the ATIR's order recorded in ITA No.581/LB/2013 dated 22.12.2015. 2. The issue involved is the import of an Air Craft by the applicant and then claiming its depreciation alongwith adjustment of Income Tax that was deducted u/s 148 of the Income Tax Ordinance 2001 By deciding ITA No.581/LB/2013 (tax year 2010) 50% of total depreciation claimed at Rs.24,902,066/- was allowed to the applicant However, adjustment of Income Tax amounting to Rs. 19,459,904/- paid/deducted on import of Air Craft was not allowed in view of Section 148(7)(a) of the Income Tax Ordinance, 2001 read with Section 2(29C) of the ibid. Now the applicant, through its miscellaneous application states that tax collected u/s 148 could only be treated as final tax on sale of imported goods in the same condition in which those were imported The applicant is engaged in the construction and sale of commercial and residential Societies and Plazas. Before we proceed further Section 148(7)(a) is reproduced hereunder for facilitation:- S, 148(7) the tax required to be collected under this Section shall be final tax except as provided under sub-section (8) on the income of the importer arising from the imports subject to sub-Section (1) and this sub-section shall not apply in the case of import- (a) Raw material, plant, machinery, equipment and Parts by an industrial undertaking for its own use;" Definition of industrial undertaking as laid down in Section 2(29C) is reproduced hereunder for ease of reference:- Section 2(29C) "Industrial undertaking" means - (a) an undertaking which is setup in Pakistan which employs, - (i) ten or more persons in Pakistan and involves the use of electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal energy; or (ii) twenty or more persons in Pakistan and does not involve the use of electrical energy or any other form of energy which is mechanically transmitted and in not generated by human or animal energy and which is engaged in, - (i) the manufacture of goods or materials are the subjection…

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