Law: Income Tax Ordinance, 1979

Section: 22,80D,23(v),ThirdSched

(a) Income Tax Ordinance (XXXI of 1979)---Ss.22 & 80-D---Income from business---Company---Expenses regarding vehicles used by Directors---Levy of turnover tax under S.80-D, Income Tax Ordinance, 1979---Assessee was burdened with levy of turnover tax by including excise duty and sales tax under S.80-D of the Income Tax Ordinance, 1979---Validity---Assessee had failed to supply details of excise duty paid---Turnover tax under S.80-D was rightly levied. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.23(v) & Third Sched.---Depreciation---Claim of depreciation on vehicles used by Directors of Company was rightly disallowed. (c) Income Tax Ordinance (XXXI of 1979)--- ----S.22---Income from business ---Assessee returned trading results---Results being better than earlier years were upheld in circumstances. ORDER ASHFAQ AHMAD (ACCOUNTANT MEMBER). ---These cross appeals for the assessment year 1994-95 filed by the assessee as well as by the Department against the order of the CIT(A). The assessee has contested the order of the CIT(A) on the following grounds: (1) That the learned CIT(A) erred in confirming the following additions: (1) Selling and distribution expenses Rs.700,000. (2) Administrative expenses Rs.250,000. (2) That the learned CIT(A) grossly erred in ignoring the depreciation allowance which is a statutory allowance. (3) That the learned CIT(A) grossly erred in confirming the levy of turnover tax by including excise duty and sales tax. On the other hand the Department is in appeal on the following grounds; (1) Rejection of declared results. (2) Relief in profit and loss account: (i) selling and distribution. (ii) Administrative expenses. 2. The brief facts of the case are that the assessee a private limited company, derives income from running a beverage company taken on lease. Return was filed to declare a loss of Rs.1,126,405. In response to notice under section 61 the A.R. of the assessee produced the books of account. The assessee declared sales at Rs.58,513,456 yielding G.P. rate of 30.58%. The Assessing Officer for a number of reasons mentioned in the body of the assessment order rejected the declared version and estimated the sales at…

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