Law: Income Tax Ordinance, 2001

Section: 22(8),37,133(1),Cl.(21) ofPartII,Second Schedule

(a) Income Tax Ordinance (XLIX of 2001)--- ----Ss. 22 (8), 37, 133 (1) & Cl. (21) of Part II, Second Sched.---Presumptive tax---Capital gains---Depreciable assets, disposal of---Assessee company was engaged in shipping business and it contended that its income by disposal of assets fell within the `ambit of its income from business' and was covered under Presumptive Tax Regime---Validity---Depreciation was never been allowed to assessee, therefore, there was no Written Down Value (WDV) available for computation of the gain and such gain could not be computed under S. 22 (8) of Income Tax Ordinance, 2001, therefore, plea raised by assessee that such gain would be treated as income from business under S. 22(8) of Income Tax Ordinance, 2001, did not hold ground---Once assessee's income became liable to presumptive tax under Cl. (21) of Part-II of Second Schedule to Income Tax Ordinance, 2001, then entitlement to depreciation deduction under S. 22 of Income Tax Ordinance, 2001, in respect of any property of such person would cease to exist and therefore, such assets did not fall within the ambit of S. 37(5)(b) of Income Tax Ordinance, 2001---Such income would fall within the definition of `capital assets' and had to be assessed as `capital gains' and not `business income' and therefore, would not be considered to be `income from business' of shipping of assessee company and was not covered by presumptive tax collected in accordance with provisions of Cl. (21) of Part-II of Second Schedule of Income Tax Ordinance, 2001---Income Tax Appellate Tribunal was justified to hold that gain on disposal of vessel was chargeable tax under the head "capital gains" and was not covered by Cl. (21) of Part-II of Second Schedule to Income Tax Ordinance, 2001---Reference was decided accordingly. Genertech Pakistan Ltd. and others v. Income Tax Appellate Tribunal of Pakistan Lahore and others 2004 PTD 2255 ref. (b) Income Tax Ordinance (XLIX of 2001)--- ----Ss. 37 & 133(1)---Capital assets---Cost of stores---Assessee company claimed certain amounts received against cost of stores and spares on board, cost of bunker with vessel and brokerage paid on disposal of vessel but the…

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