Law: Income Tax Ordinance, 1979

Section: 80D,80C

Income Tax Ordinance (XXXI of 1979)]......Ss. 80 D & 80 C Minimum tax on income of certain persons First Appellate Authority directed the Assessing Officer to take into consideration the amount of tax paid by the assessee under S.80 C of the income Tax Ordinance, 1979 at the time of working of tax under S.80 D of the Income Tax Ordinance, 1979 and turnover under S.80 C of the Income Tax Ordinance, 1979 should also be included in the total turnover for purpose of working Validity Department failed to establish that the tax paid under the provisions of S.80 C of the Income Tax Ordinance, 1979 was excluded from the total tax payable under the provision of S.80 D of the Income Tax Ordinance, 1979 In the provision of Explanation to S.80 D of the Income Tax Ordinance, 1979 it was clarified that turnover meant the gross receipts, exclusive of trade discount shown on invoices or bills, derived from sale of goods or from rendering, giving or supplying services or benefit or from execution of contracts Provisions of S.80 D of the Income Tax Ordinance, 1979 did not exclude the turnover and tax paid under S.80 C of the Income Tax Ordinance, 1979 for the purposes of working out minimum tax liability under said section Order of First Appellate Authority being fully justified was upheld by the Appellate Tribunal and appeal of the Revenue failed. ORDER KHALID WAHEED AHMAD (JUDICIAL MEMBER). This departmental appeal pertaining to assessment year 1996 97 is directed against the order, dated 17 8 1998 of CIT(A) Zone II, Lahore. 2. D.R. is present on behalf of the Revenue while the assessee is represented by the A.R. 3. The brief facts of the case are that assessee is a private limited company which derives income from contracts. The Assessing Officer levied working of minimum tax under section 80D of the Income Tax Ordinance on company's total turnover. On appeal before the First Appellate Authority the assessee contested the action of the Assessing Officer on the ground that amount of tax paid at Rs.32,363 under section 80C should also be considered while working out tax under section 80D of the Ordinance. After finding the contention of the assessee to be legally justified,…

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