Law: Income Tax Ordinance, 2001

Section: 120(1), 122(5A),

O r d e r NASIR MAHMUD (Member) : These appeal have been preferred by the Department/Revenue against the consolidated order dated 27.09.2016 passed by the Commissioner Inland Revenue (Appeals), “CIRA” in the appeals for the tax years 2010, 2011, 2012 & 2013.  2.   The brief facts of the case are that M/s Altern Energy limited “taxpayer” is a public limited company, involved in generation and supply of electric power to WAPDA. The taxpayer filed its return for the tax year 2010, 2011 and 2012 and declared Income from the other sources beside business Income and also claimed the same as exempt from tax Act clause 132 of part-I of the Second Schedule. The return was filed by the taxpayer were taken as deemed assessment order in terms of Section 120(1) of the Income Tax Ordinance, 2001 “Ordinance”. The deemed assessment order was considered erroneous in so far prejudicial to the interest of Revenue. Therefore, show cause notices were issued on 03.06.2016 for the respective tax year. These notices were contested by the taxpayer on factual and legal plane that the invocation of Section 122(5A) is not lawful. The adjudication proceedings culminated into order dated June, 15, 2015 in tax years 2010 & 2011, and on 30-03-2016 for the tax years 2012 & 2013. 3.    Being aggrieved, the taxpayer preferred appeals before the learned CIRA who vide consolidated orders dated 27.09.2016 was determine the appeal issue wise/grounds wise as under;- On the issue of gain on sale of fixed assets/sale of scrap for the tax years 2010, 2011, 2012 & 2013, the learned CIRA relied upon a judgment reported as 108 Tax 39 where the similar issue was decided by the Tribunal in favour of the taxpayer. On the issue of ground No. 8 and 9 (interest of delayed payments for the tax year 2010), the learned CIRA while relying on a judgment reported as 2006 PTD 2056 held the findings of the learned officer Inland Revenue is not sustainable. On the issue of minimum tax on other Income, the learned CIRA on the issue of capacity payment and supplement income for the tax years 2010 to 2013 disapproved the findings of the OIR…