Law: Income Tax Ordinance, 2001

Section: 15,15A,113,113(1),113(3),113(3)(a),113(5 ),169

INCOME TAX ORDINANCE, 2001, (XLIX OF 2001)---Sections: 15, 15A, 113, 113(1), 113(3), 113(3)(a), 113(5) & 169 - Finance Act, 2012 - Minimum tax on the income of certain persons - Gross sales or gross receipts - Income from property - Deductions in computing income chargeable under the head “income from property” - Tax collected or deducted as final tax - Computation of minimum tax liability - Levy of tax from income from property u/s 113 - The contention of the counsel that income from property, identified u/s 15 of Ordinance must be treated as separate head of income and needed to be taxed independent of the minimum tax regime dispelled by the Appellate Tribunal - Appeal of taxpayer allowed while appeal of Department, dismissed - Reference to High Court - FACTS This and connected Income Tax Reference Application No. 2683/2023 are directed against consolidated order dated 02.12.2021 of learned Appellate Tribunal Inland Revenue, Lahore, whereby appeals preferred by Taxpayer, relating to Tax Years 2014 and 2015, were allowed. And appeal preferred by the department, bearing ITA No.3825/LB/2018, was dismissed. ARGUMENTS Learned counsel contends that income from property, identified under section 15 must be treated as separate head of income, and needed to be taxed independent of the minimum tax regime. Learned counsel states that rental income raised from the property does not form part of the turnover of taxpayer but comes within separate head of income. DECISION (a) Income from property and its exclusion from Explanation to Section 113(1) - Learned counsel failed to convince us that how income from property be brought within the exclusions provided through Explanation to sub-section (1) of section 113 of the Ordinance, 2001 - inserted through the Finance Act, 2012. Legislative intent cannot be defeated by effecting exclusion of income from property, otherwise calculable as part of gross receipts for the purposes of turnover under section 113 of the Ordinance, 2001. (b) Expression “gross sales” and “gross receipts” - Definition - Expression ‘gross sales’ and ‘gross receipts’, employed in clause (a) of sub-section (3) of section 113 have had to be construed…

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