Law: Income Tax Ordinance, 1979

Section: 32,133,Clause(3) ofPart.IV of Second Schedule

Law: Income Tax Ordinance, 2001

Section: 3

Law: Banking Companies Ordinance, 1962

Section: 35,91A

Law: State Bank of Pakistan Act, 1956

Section: 46B,54A

Income Tax Ordinance, 1979 (XXXI of 1979) - Sections: 32 & 133 - Clause (3) of Part. IV of Second Schedule - State Bank of Pakistan Act, 1956, sections: 46B & 54A - Banking Companies Ordinance, 1962, Sections: 55 & 91A - Reference to High Court - Method of accounting - Provision for diminution in value of investment - Disallowance by Assessing officer and addition back in income of taxpayer - Treatment meted out by AO affirmed by CIT(A) in appeal - Tribunal held that sections: 46B and 54A of State Bank of Pakistan Act, 1956 and section 55 read with section 91A of Companies Ordinance, 1962 do not override any conflicting provisions of Income Tax Ordinance that word "or" appearing in clause (3) of Part IV of second schedule to Income Tax Ordinance 1979 between two distinct entities i.e. "Banking Company" and Financial Institution" is conjunctive - Tribunal applied section 3 of Income Tax Ordinance, 2001 on assessment completed under repealed Ord: 1979 wherein no such parallel provision was available while disposing of appeal of taxpayer - Validity - (1) Whether real question before Tribunal was whether asses see had made provision for diminution in value of investment and AO had disallowed it by slating that it was purely provision and therefore disallowance was made by AO and affirmed by CIT(A) - Held yes. (2) Whether this issue was not dilated upon by Tribunal and Tribunal adverted its attention to issue relating to special and general provisions and when one of the enactments would have over riding effect upon other - Held yes. (3) Whether in reported as 2014 SCMR 1557 effect of section 32 of repealed Ordinance was considered and it was held that respondent banks were justified in adopting method of accounting which was hybrid and had been consistently used by respondent Banks since long - Held yes. (4) Whether portion of impugned order of Tribunal on this issue is therefore, set aside and matter is remanded to Tribunal for determining on merits of case viz whether provisions made by assessee for diminution in value of investment ought to be allowed or not - Held yes. (5) Whether holistic reading of Part 3 of Second Schedule applied to banking…

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