Law: Income Tax Ordinance, 1979

Section: 13

[Income Tax Ordinance (XXXI of 1979)].....Second Sched. Cl. 6(H) & S.13...Exemption...Pre-conditions for exemption from S.13 of the Income Tax Ordinance, 1979 stated. (b) Income Tax Ordinance (XXXI of 1979)---Second Sched. Cl. 6(H) & S.13...Exemption...Requirement of the management and control of the Federal or Provincial Government is in respect of only DFI and not in respect of a banking company... Properties purchased from banking companies and from DFls managed and controlled by some government were exempt from application of S.13 of the Income Tax Ordinance, 1979. ORDER KHAWAJA FAROOQ SAEED, CHAIRMAN.---This appeal on behalf of the department says that the ,CIT(A) was not justified to hold that property purchased by assessee in the auction of the Citi Bank is entitled to exemption under clause 6(H) of the 2nd Schedule. 2. The D.R. supporting his claim said that Citi Bank is not a Government and is only a financial institution. It is neither owned by the Federal Government nor by the Provincial Government. The same, therefore, does not apply on the facts of the case. The provision of law relevant to the issue is as follows: Clause (6H): The provisions of section 13 or Chapter XI or Chapter XII shall not apply in respect of any amount invested in the purchase of assets auctioned or sold as a consequence of a court order or decree in a case filed by a banking company or a DFI whose management or control vests in the Federal or a Provincial Government. 3. The above provision speaks of exemption from section 13 on the basis of following pre-conditions: (i) That the amount should be invested for purchase of assets auctioned or sold in consequence of a court order or decree, and; (ii) That the said auction should be by a banking company or DFI controlled by Government. 4. This obviously means that a banking company is very well covered if the other condition that the sale of the asset by…