Law: Income Tax Ordinance, 1979

Section: 15(d),15(f),22,30,30(2)(b)

NOTES: Income from business or income from other sources, determination of-Question before High Court, was whether income of taxpayer company generated as interest on bank deposits amounted to "income from business" or "income from other sources"- Held, that in previous round of litigation between taxpayer and Department, Appellate Tribunal had held that income of taxpayer would be charged as "income from business " and not as "income from other sources", which order was not challenged by Department, and had attained finality and therefore no question of law was left to adjudicate in the present case-Reference was disposed of, accordingly. Lucky Cement Ltd. v. Commissioner Income Tax, Zone Companies, Circle-5, Peshawar 2015 SCMR 1494 distinguished. JUDGMENT: BABAR SATTAR, JUSTICE:---.--- Through this consolidated judgment, we will decide the instant Tax Reference and the Tax References listed in Annexure 'A' attached hereto. 2. In these Tax References the question of law before us is as follows: "Whither on the facts and in the circumstances of the case, learned ITAT was justified in law in holding that the assessee's interest income on the bank deposit is chargeable to tax as income from business or profession and not as income from other sources." 3. Learned counsel for the Department has relied on the judgment of the august Supreme Court in the matter of Lucky Cement Ltd, v. Commissioner Income Tax, Zone Companies. Circle-5, Peshawar (2015 SCMR 1494) to contend than income/interest yielded from placement of funds in bank accounts would be taxed as assessed "income from other sources" and not as "income from business" for purposes of the Income Tax Ordinance, 1979. 4. Learned counsel the respondent company states that Lucky Cement's case does not support the Department's contention as that case turned on the fact that the constituent documents of the company did not empower the company to engage in the business of investment and it was in view of the explicit prohibition in the constituent documents of the taxpayer company that the august Supreme Court held that income/interest from investment could not be treated as income from business and ought to be…

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