| Citation(s) |
|---|
| 1989 SLG 168 1989 SLD 168 1989 PTD 1204 (1990) 61 TAX 14 |
Income Tax Appellate Tribunal
I.T.As. Nos.111/LB, 112/LB, 1904/LB/1987-88 and I.T.A.No.205/LB/ of 1987-88 and 619/LB of 1986-87, decision dated:30-01-1989, hearing DATE : 17th July 1988
MIAN ABDUL KHALIQ, JUDICIAL MEMBER AND MIRZA MUHAMMAD WASIM ACCOUNTANT MEMBER
Sikandar Kaleem for Appellant. Iqbal Naeem Pasha with E.U. Khawaja for
Respondent
I.T.As. Nos.111/LB, 112/LB, 1904/LB/1987-88 and I.T.A.No.205/LB/ of 1987-88 and 619/LB of 1986-87, decision dated:30-01-1989, hearing DATE : 17th July 1988
MIAN ABDUL KHALIQ, JUDICIAL MEMBER AND MIRZA MUHAMMAD WASIM ACCOUNTANT MEMBER
Sikandar Kaleem for Appellant. Iqbal Naeem Pasha with E.U. Khawaja for
Respondent
Law: Income Tax Ordinance, 1979
Section: SecondSched.Cls.98,122,23(1),FirstSched, PartII,para.A(1)(2),134
(a) Income-tax Ordinance (XXXI of 1979)---Second Sched. Cls. 98 & 122----Assessee deriving income from assembly-cum¬manufacturing of tractors--Income Tax Officer was of the view that assessee was not entitled to claim exemption of profit and gains from his Dera Ghazi Khan unit as Second Sched., C1.122 envisaged exemption from tax by an assessee from an industrial undertaking engaged in the manufacturing of goods or material but assessee was not engaged in the manufacturing of tractors rather its nature of business was assembly of tractors--Held, both Cls.98 & 122 of Second Schedule were independent of each other and the Income Tax Officer erred in refusing the assessee's claimed exemption under C1.122. Notwithstanding the fact that clause 122 was inserted in 1980 i.e. 12 years after the notification issued under section 60 of the repealed Income-tax Act, the expression used therein was not-adopted in the special provision. The other distinction is that in clause 98 after mentioning the word 'manufacture' word-not assembled" was mentioned within brackets. The very fact that notwithstanding the awareness of the rule making authority that the words "not assembled" appeared after the word "manufactured" in clause 99, these words were not included in clause 122, indicates the intention of the legislature that the expression "subjecting the goods or material to manufacturing process included the process of assembly". Both the provisions are thus independent of each other. The words "not assembled" having not been adopted in clause 122 the department misdirected itself in law by reading the expression used in clause 98 in clause 122 also. The department officers erred in refusing the assessee's claimed exemption under clause 122. (b) Income-tax Ordinance (XXXI of 1979)-- ---Second Sched., Cl. 122--Word "manufacture" used in C1.122 is wide enough to include the process of assembly. 1986 PTD 384; PLD 1965 SC 16; PLD 1959 SC 103 (1968) 68 ITR 325 I.T.A. No. 688 (PB) of 1981-82 ITA Nos. 688/B of 1981-82 dated 6-1-1986 No. 197/198 PB 1986 PTD 384; 1987 PTD 362 and 1971 S T C 573 ref. (c) Income-tax Ordinance (XXXI of 1979)-- ---S.23(1)--Interest on private basis for…
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