Law: Income Tax Ordinance, 2001

Section: 108,109,122,122(1),122(5),122(5)

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001)--Sections: 108, 109, 122, 122(1)(5) 122(5): - Amendment of assessments - Transactions between associates - Agreements for avoidance of double taxation and prevention of fiscal evasion - Snow Cause Notice - Addition on account of interest as per market rates on advances/disbursement to SSGC in the Bank where there are common directors in the Respondents Bank SSGC - Annulment by the CIR(A) deletion of addition by the Appellate Tribunal and confirmation of annulment - Reference to High Court - FACTS Through this Reference Application, the Applicant has impugned Order dated 25.11.2015. passed by the Appellate Tribunal, Inland Revenue. Karachi in ITA No. 936/KB/20I3 (Tax Year 2009) arising out of an mended assessment order under section 122(1)(5) of the Income Tax Ordinance, 2001, proposing the following questions of law:- i. Whether under the facts and circumstances of the case the learned Tribunal was justified to delete the addition on account of interest as per market rates on the advances/disbursement to SSGC in the bank where there are common directors in the respondents Bank and SSGC? ii Whether under the facts and circumstances of the case the learned Tribunal was justified to confirm annulment instead of remanding back the case? ARGUMENTS Learned counsel for the Applicant has read out the relevant finding of the learned Tribunal as well as of the Assessing Officer and submits that the forums below have not appreciated the law, as according to the officer the respondent had failed to charge interest on amounts disbursed to the associates while it paid profit on debt on the amount received from them; and lastly, per learned counsel, the matter ought to have been remanded for an appropriate treatment instead of annulling the same. DECISION (A.) No question of law arises out of order of Appellate Tribunal - Application dismissed in limine - There isnt any question of law apparently in this matter, whereas, the Applicant has not been able to justify its treatment as above; hence, it appears to be merely a factual question and does not require interference by us in our Reference Jurisdiction. Accordingly, this Reference…

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