| Citation(s) |
|---|
| 2025 SLG 3327 2025 SLD 3327 |
ITA No.5748/LB/2024 (Tax Year 2022)
(RAO MUHAMMAD NASIR JAMIL) (NASIR MAHMUD) Member
Appellant by : Mr. Saad Saeed, ACA.
Respondent by : Ms. Zil-e-Huma, D.R. Date of hearing : 16.07.2025 Date of order : 22.07.2025
M/s. Nishat Chunian Power Ltd, Lahore. …Appellant Reg No:2958445
VERSUS
The Addl. CIR, Zone-II, CTO, Lahore. …Respondent
Law: Income Tax Ordinance, 2001
Section: 122(5A), Clause (132) of Part I, Second Schedule, 39, 111
Summary of the Order:
Background: The taxpayer, a public listed power generation company, appealed against the Assessing Officer’s order (under Section 122(5A) of the Income Tax Ordinance, 2001) alleging wrongful taxation of certain incomes originally declared as exempt.
Main Dispute: The Assessing Officer treated 'other income' disclosed in audited accounts (such as scrap sales, insurance claim, exchange gain) as "Income from Other Sources" (taxable under Section 39), instead of treating them as exempt business income covered by Clause (132) of Part I, Second Schedule to the Ordinance which exempts profits and gains from power generation.