Law: Income Tax Ordinance, 1979

Section: SecondSched

(a) Income-tax Ordinance (XXXI of 1979)---Sched. II, C1. 120-A--Assessee, a corporate body exclusively owned by Provincial Government--- Income of such a Body attributable to the sale of timber exempt from tax-Income flowing from interest on bank deposits is income and is taxable like any other income, unless specific exemption extended to it. (b) Income-tax Ordinance (XXXI of 1979)-- ---Sched. II, C1, 120-A--Expression "attributable to" wider in import than expression "derived from"--Assessee, a corporate body exclusively owned by Provincial Government deriving income from felling and sale of trees Receipts from rental charges registration fee, sale of scrap and workshop charges being part of sale of timber, income of assessee on such activities, held, was, exempted-- Assessee's income flowing from interest on bank deposits however was not, exempted. Cambay Electric Supply Industrial Company Limited v. Commissioner of Income Tax Gujerat II. dated 11 April, 1978 arid Chamber's Twentieth Century Dictionary New- Edition, 1964 ref. ORDER The assessee, a corporate body exclusively owned by the Government of NWFP, has lodged this appeal against the order of learned CIT (Appeals), dated 26-1-1987 in respect of the charge year 1983-84, by which he declined to exempt it from payment of tax. The assessee derives income from the telling and sale of trees as also from deposits in bank by way of interest and rental charges, registration fee, sale of scrap and workshop charges. It submitted return for the year 1983-84 declaring nil income, claiming complete exemption under clause 120-A of the Second Schedule of the Income Tax Ordinance, 1979 as, according to it, whole of the income was attributable to the sale of trees. The ITO accepted the contention, but only in regard to the income relatable to the sale of trees. The rest of the income declared, he held liable to tax and determined the same as under: (1) Interest on investment as declared. Rs.4,49,552/- (2) Registration fee as declared. Rs.2,620/- (3) Rental charges as declared. Rs.1,30,839/- (4) Sale of scrap as declared. Rs.1,900/- (5) Workshop income as declared. Rs.26,699/- Total Misc. income... Rs.6,11,610/- Less…

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