Law:

Section:

ORDER Through this misc. application petitioner has asked rectification of mistake in the order of the Tribunal vide ITA No. 384 (IB) of 2011 dated 12.08.2014 on account of addition of brokerage and commission and apportionment of expenses. Briefly the facts leading this application are that taxpayer filed return which is deemed assessment order under the term of section 120 (1) (b) of the Ordinance 2001, the assessment was amended. On account of addition for non-deduction of tax on commission and brokerage amounting to Rs. 58,74988/- has been added for the reason recorded in the amended order, while also apportionment of expenses were made. Application u/s 221 was filed for rectification of treatment on both the above issues which was rejected. The taxpayer then filed appeal before the first appellate authority, which failed then 2nd appeal before the Tribunal which also received the same fate. Now through this misc. application taxpayer has asked for the rectification of the mistake. The L/AR contested that amount of Rs. 5874988/- pertaining to charges paid to Pakistan Stock Exchange Limited (Formerly Karachi Stock Exchanged Limited) on Account of LAGA (Investor Protection Fund, Clearing House Charges, SECP Act. There expenses were added back to the income on the pretext of non-deduction of withholding tax, while no tax was deductable as SECP is exempt from taxation. The L/DR supported the impugned order. About apportionment of expenses it was pointed out that the Tribunal has taken the amount of Rs. 2,281,955,024/, which represent the amount of shares actually transacted during the period instead of total receipts on account of capital gain amounting to Rs.58,282,479/-, which resulted of wrong calculation at Rs. 187,916,562/- resulting into 90% allocation of common expenses to exempt revenue. After having heard the arguments of the parties and from perusal of the relevant order, the contention of L/AR on both the issues has been found correct for the reason discussed as under:- On account of brokerage and commission in the impugned order of the Tribunal vide ITA No. 384 (IB)/2011 dated 12.08.2014 at para-5 the brokerage and commission with the remarks that…

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