Law: Income Tax Ordinance, 1979

Section: 136,136(1),(2)

Income Tax Ordinance (XXXI of 1979)----S.136(1) & (2)---Reference to High Court---Question of law--­Amount deducted by the Highway Department out of total contract receipts on account of supply of material to its contractor could not be included in the gross receipts of the contractor/assessee for determining his total income chargeable to tax---Amount being price of supply made by the Department was an expense and could not form part of the gross receipts---Said amount having never reached the hands of the assessee, he had all the justifications to reduce his receipts by that sum. Re: Commissioner of Income-tax v. J.S. Serwarey (1978) 38 Tax 57 rel. ORDER NASEEM SIKANDAR, J.---The Lahore Bench of the Income­tax Appellate Tribunal, at the instance of the assessee. Messrs Mian Contractors, Lahore has referred following question of law under section 136(1) of the Income Tax Ordinance, 1979 which is said to have arisen out of their order, dated 27-9-1990:--- "Whether on the facts and in the circumstances of the case, when the assessee has declared net receipts following the instructions contained in C.B.R.'s Circular No.1 of 1950, dated 10-11-1950 followed by Circular No.11 of 1961 and after holding that it was not a case of concealment to hold that the re­opening of the case was justified and correct?" 2. Earlier before the Tribunal assessee had proposed following three questions under section 136(1) of the Income Tax Ordinance, 1979:--- "(1) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the income of the assessee chargeable to tax could be determined in a manner violative of the Circular of the C.B.R. for the determination of that income, and whether the sum of Rs.2,75,241 for cost of material was rightly included in the gross receipts of the assessee chargeable to tax? (2) Whether in the facts and circumstances of the case the I.T.A.T. Tribunal was right in holding that the Tribunal was not obliged to see whether C.B.R.'s instructions which are binding on the I.T.O. as provided in section 8 of the Income Tax Ordinance. 1979, are followed by the I.T.O. or not? (3) Whether in the facts and circumstances of…

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