Law: Income Tax Ordinance, 1979

Section: SecondSched.,PartI,Cl.(176),87,22

(a) Income Tax Ordinance (XXXI of 1979)----Second Sched., Part I, Cl. (176)---Exemption---Power generation business---Interest income on advances made to sister concern--Taxability--Interest on advanced made to sister concerns were not related to the business of Power generation---Interest .earned on such advances was properly brought to tax by the Assessing Officer and rightly confirmed by the First Appellate Authority. 1999 PTD (Trib.) 708 ref. (b) Income Tax Ordinance (XXXI of 1979)--- ----Second Sched., Part 1, Cl. (176)---Exemption---Power generation business---Interest income on advances made by way of guarantee through Bank to ensure supply of gas by Gas Company to Power Generation Project---Taxation---Validity---Exemption was allowed to the interest earned from account, opened with the Bank for facility of providing guarantee to gas company---Interest was part of income of Power Generation Project and addition made by Assessing Office on this count was deleted by the Appellate Tribunal. I.T.A. No. 136/KB of 1998-99 rel. (c) Income Tax Ordinance (XXXI of 1979)----- ----S. 87---Additional tax for failure to pay advance tax---Levy of additional tax under S.87 of the Income Tax Ordinance, 1979 for non-payment of advance was proper. ORDER JAVAID IQBAL (JUDICIAL MEMBER).---This order will disposed of the appeal filed on behalf of assessee against the order recorded by learned CIT(A), dated 15-9-2001, raising the following objections:-- That the learned CIT(A) has erred in confirming the action of learned Assessing Officer in bringing in to tax interest on advance and return on deposits amounting to Rs.6,364,954 by ignoring the claim of exemption of income of the appellant under clause 176 of the Second Schedule to the Income Tax Ordinance, 1979. That the learned CIT(A) has erred in confirming the action of the learned Assessing Officer for charging additional tax amounting to Rs.303,382 under section 87 of the Income Tax Ordinance, 1979. That the learned CIT(A) has erred. in confirming the action of the learned Assessing Officer for charging additional tax amounting to Rs.1,152 under section 88 ,of the Income Tax Ordinance. 2. However, last objection, which…

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