Law: Income Tax Ordinance, 1979

Section: 22(c)&Second ScheduleCl.(65)

(a) Words and phrases--- ----"Income"---Meaning. Concise Oxford Dictionary ref. (b) Income Tax Ordinance (XXXI of 1979)----S.22(c) & Second Sched., Cl.(65)---Exemption---Export award---Assessee claimed exemption of amount received on account of export award-Assessing officer taxed the amount treating the same as taxable income under S.22(c) of the Income Tax Ordinance, 1979---Order was confirmed by the Commissioner of Income Tax (Appeals)--- Validity---Such receipt being of a non-recurring nature was exempt under cl, (65) of the Second Sched. of, Income Tax Ordinance, 1979. (1981) 129 ITR 603 distinguished. I.T.A. No. 1039/LB of 1990-91 ref. ORDER INAM ELLAHI SHEIKH (ACCOUNTANT MEMBER).---A private limited company/deriving income from manufacture and supply of electricity meters has filed this further appeal against an order, dated 14-12-1991 recorded by the learned C.I.T. (Appeals), Zone-II, Lahore whereby the refusal of the assessing officer to treat export award received as exempt income was confirmed by the first appellate authority. 2. The relevant facts in brief are that the assessee supplied meters to WAPDA under an international tender arrangement and such supplies were treated as export. Such applies were said to have been made in the income year ended 30-6-1988 pertaining to the assessment year 1988-89. The assessee was awarded the export award of Rs.1,000,000 which was instituted by the Government of Pakistan vide a Notification No.3-15/88-P & C, dated 26-6-1988, The assessee was advised by the Export Promotion Bureau that it had been selected for receiving the export award on account of "Highest Engineering Goods Exports" during the year 1987-88, vide a letter, dated 19-2-1989. The assessee accounted for this award as income in the accounts and declared the same as exempt income in the return. The assessing officer confronted the assessee on this issue and thereafter, refused the claim of exemption treating the income as taxable under section 22(c) of the Income Tax Ordinance (hereinafter called the Ordinance). The learned C.I.T. (Appeals) confirmed this treatment. 3. The main issue decided by the learned C.I.T. (Appeals) is the assessees…

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