Law: Income Tax Ordinance, 2001

Section: 60A,113,120,122(5A)

(a) Income Tax Ordinance (XLIX of 2001)--- ----Ss. 113, 120 & 122(5-A)---Amendment of assessment---Levying and charging minimum tax---Taxpayer, an Airline, filed income tax return for relevant year on due date and declared loss---Department initiated proceedings under S.122(5-A) of Income Tax Ordinance, 2001 and issued show-cause notice to the effect that taxpayer had not charged on the 'turnover', which had rendered the self-assessment erroneous---Adjudication Officer proceeded to amend the assessment and raised demand against the taxpayer---Appellate Authority on appeal remanded the case to Adjudicating Officer for de novo consideration---Taxpayer had declared a net turnover in his audited account on account of fare from passengers, cargo freight and excess baggage---Taxpayer submitted that minimum tax could only be charged or levied on the turnover under S.113(3) of Income Tax Ordinance, 2001 and any item not covered under the definition of "turnover", would be outside the ambit of minimum tax; that tax-payer was not subject to minimum tax because the fare and freight received by him fell outside the definition of 'turnover'---'Turnover' could only be applicable where the 'gross fees' was for the rendering of services and used in a very restricted manner---All such receipts which did not fall within the meaning or ambit of "gross fees" or "fees" were not subject to minimum tax---Department had conceaded that receipts of the taxpayer were for "fare and freight", which were subject to terminal taxes on goods and passenger---All the revenues of a company were not subject to minimum tax, but only those which fell under the definition, would be liable to minimum tax under S.113 of the Income Tax Ordinance, 2001---Gross amount received by the Airline under the head "fare from passenger", 'cargo freight' and 'excess luggage' did not fall within the ambit of "gross fee" for rendering services for giving benefits including commission as postulated in the definition of 'turnover' under S.113(3)(b) of the Income Tax Ordinance, 2001---Appeal of…