Law: Income Tax Ordinance, 1979

Section: 12(9A),14,22,30,31(1)(b),38(6),52,86,80C (2)(b),Second SchedulePart-ICl.(176),

Law: Protection of Economic Reform Act, 1992

Section: Preamble

(a) Income Tax Ordinance (XXXI of 1979)----Second Sched., Part-I Cl. (176) and S.30---Protection of Economic Reforms Act (XII of 1992), Preamble---Power Policy of 1994---Power generation---Exemption---Interest received by the assessee on unutilized balances lying in the bank---Taxation---Validity---Exemption was only and strictly to profit and gains on sale of electricity and it did not in any way provide room for auxiliary or ancillary item either---Interest income from unutilized regular business accounts for the matter was not even an ancillary income to the power generation---Protection of Economic Reforms Act, 1992 was available to the persons who were notified in the Schedule to the said Act. Genertech Pakistan Ltd. v. ITAT (2004) 90 Tax 33 (SC Pak.) = 2004 PTD 2255 distinguished. (b) Income Tax Ordinance (XXXI of 1979)--- ---S. 14---Protection of Economic Reforms Act (XII of 1992), Preamble---Notification No.1283(I)/90, dated 13-12-1990---Exemption---Protection of Economic Reforms Act, 1992 provided that the exemption was provided specifically under Notification No.1283(I)/90, dated 13-12-1990 which had been issued under S.14 of the Income Tax Ordinance, 1979---Protection of Economic Reforms Act, 1992 applied only on those projects which were specifically mentioned in its Schedule. (c) Income Tax Ordinance (XXXI of 1979)--- ---Second Sched: Part-I CI. 176 & S.30---Protection of Economic Reforms Act (XII of 1992), Preamble--Power Policy of 1994---Power generation---Exemption---Interest income---In pre-production period when the actual work had not started, there was no question of exemption either on the main produce or other sources but it did not hold that after setting up of the industry its income from all sources shall be exempted---In statutory construction the provisions with regard to exemption were subject to strict interpretation---Unlike charging provisions doubt was to be resolved in favour of the department---Since law was very clear and exemption was only from power generation, appellate Tribunal did not subscribe to the view that interest income was covered with the protection. Genertech Pakistan Ltd. v. ITAT 2004 SCMR 1319 = 2004 PTD…

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