Law: Finance Act, 1997

Section: Preamble

Law: Finance Act, 1995

Section: Preamble

Order 1. The appellant through this appeal has assailed the order of the learned IAC dated 08-04-2000 passed u/s 66A of the Income Tax Ordinance 1979 on the grounds that the learned IAC has erred:- (i) in observing that the interest income has not accrued on the instruments issued by the payer Company and has not attracted the provision of Section 50(7D) of the Ordinance, (ii) in directing that assessment be made afresh under the normal provisions of the Ordinance in respect of interest income of Rs.1,560,368/- (iii) in adjudicating that the order passed under section 62 of the Income Tax Ordinance, 1979 is erroneous and prejudicial to the interest of Revenue. 2. Brief facts leading to this appeal are that return showing a loss of Rs.29,923/- was filed alongwith computation of income, tax liability and other documents. The assessing officer sent a notice in accordance with law u/s 61, in response to that notice representative of the assessee attended and furnished the necessary details asked by the assessing officer. The assessee declared income from the following sources:- i) Dividend from N.I.T and other limited companies ii) Interest /mark-up income. iii) Property income. The assessee also furnished before the assessing officer proof of Zakat, Wealth Tax. The assessee claimed following incomes u/s 80-B of the income Tax Ordinance, as a separate block of income for which statement u/s 143B has also been filed. Divident from:- 1. NIT Rs. 38,300 2. Sana Industries Ltd., Rs. 20,00,000 Total dividend income Rs. 2,048,300 Mark-up from Taqees (Pvt) Ltd. Rs. 1,560,368 Total income declared u/s 143B Rs. 3,608,668 Tax payable on above @ 10% Rs. 360,867 Less tax paid Rs. 360,867 Balance payable Rs. NIL The assessing officer has computed the income as follows:- TAXABLE INCOME 1. Property income Rs.58,560 Less: 1/5th for repairs Rs. 11,712 Property taxes paid Rs. 5,138 Wealth tax Rs. 13,583 Rs. 30,433 Rs. 28,127 Less: Zakat deducted Rs. 58,050 Total loss Rs.(29,923) The learned IAC issued a show cause notice u/s 66A which was replied by the assessee in detail but the assessing officer after considering the reply found that the reply is unconvincing for the following…

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