Law: Income Tax Act, 1922

Section: 15,15-GG(1)

Law: Income Tax Ordinance, 1979

Section: 107(1)

(a) Income-tax Act (XI of 1922)-- ---S. 15-G G(1)--Words "actual cost of a plant and machinery"-¬Interpretation--Expression "actual cost" to be ascribed meaning which it carries for business community. Challaepelli Sagar Ltd. v. C.I.T. (1975) 98 I T R 167 fol. (b) Income-tax Ordinance (XXXI of 1979)----S. 107(1)--Tax credit for replacement, balancing and modernisation of machinery or plant--Expression "any amount in the purchase of plant and machinery" used in S.107(1)--Interpretation and meaning-.-Expression has to be understood to carry same meaning which the business community ascribes to it--Assessing Officer, under circumstances of each case to determine as to which expense has been incurred for getting the plant or machinery and allow if it is added to the value of plant and machinery purchased -Travelling expenses of directors in purchase value of plant machinery being very remotely connected with purchase of plant not allowed. Though the legislature has not used the words "actual cost" which were used in Section 15-GG of the repealed Income-tax Act yet the intention appears to be the same. It has been decided as a matter of policy to grant tax credit to a Pakistani Company, which invests any amount in the purchase of plant and machinery for installation at any time between the relevant period. Since the legislature has put emphasis on investment of any amount in the purchase of plant and machinery and since such investment can be taken into consideration for tax credit purposes if such machinery or plant is purchased for installation purposes, therefore, the investment in. Purchasing would not be complete till the machinery or plant is received by an assessee for the purpose of installation. As such all those incidental expenses which an assessee invests in purchasing the plant or machinery and bringing it to the site of installation would be deemed to be the amount invested in the purchase of plant or, machinery and tax credit would be admissible thereon. The expenses which could be included would be C.I.F. value of the plant or machinery, the custom duty and sales tax if any, imports fees any, demurrage and wharfage, if paid by an assessee for reasons…

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