Law: Income Tax Act, 1922

Section: 13(1)(d),13(2),267,Sched.I,PartIV,91

(a) Income-tax Act (XI of 1922)--Ss. 13(1)(d) & 13(2)--Addition on ground of unexplained investment--Approval taken from I.A.C. with regard to the amount to be added to the income is sufficient. (b) Income-tax Ordinance (XXXI of 1979)- --Sched. I, Part IV, para. A(2)(a) & S. 267--Export rebate-¬Entitlement to availability of rebate--Extent--Exporter, a registered firm--Export rebate, held, was available to the firm as well as its partners. Per Abrar Hussain Naqvi, Judicial Member, Mian Abdul Khaliq, Judicial Member agreeing--[Majority view]-- Export rebate is available where the total income of an assessee includes any profits and gains derived from export of goods manufactured in Pakistan. Now the question is where a firm has derived income from export of goods manufactured in Pakistan, what would be the nature of income of the partners of that firm? In order to answer the question one has to revert back to various heads of income enumerated by section 15 of the Ordinance, one of which is income from business or profession. The assessee had to be assessed under any one of the heads of income. There is no dispute that the assessee has income from business or profession and is assessed under clause (d) of section 15 which dell: with income from business or profession. Thus the total income of the individual partner includes, the profits and gains derived from export of goods manufactured in Pakistan. It is immaterial whether the business has been conducted as individual or through the firm. Therefore, every partner's income has to be held to be profits and gains derived from export of goods through the firm. In clause (a) the words "income-tax and super-tax" are significant. It has not been said income-tax or super-tax. This means that both income-tax and super-tax is to be reduced by an amount equal to 55% of the amount of income-tax and super-tax. Had the word 'or' instead of 'and' between 'income-tax' and 'super-tax', been there, it could be said that the relief could be given in either of the tax. The use of the word 'and' further supports the contention that both the income-tax and super-tax are to be reduced by way of export rebate. Clause (a)…

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