Law: Income Tax Ordinance, 1979

Section: 134,FourthSched,5(c)

Law: Insurance Ordinance, 2000

Section: 26(2)

Law: Insurance Ordinance, 2000

Section: Preamble

Law: General Clauses Act, 1897

Section: .8(2)

Income Tax Ordinance (XXXI of 1979)------S.134, Fourth Sched., R.5(c) General Clauses Act (X of 1897), S.8(2) Insurance Ordinance (XXXIX of 2000), Preamble Addition -Confirmation of addition of excess management expenses Insurance Act, 1938 which imposed restriction of incurring management expenses to a limit had been repealed by new Insurance Ordinance, 2000 and said new Insurance Ordinance did not impose any such restriction -As per S.8(2) of General Clauses Act, 1897, reference in R.5(c) of Fourth Sched. to Income Tax Ordinance, 1979 with effect from assess-ment year 2000 2001, would be construed to be Insurance Ordinance, 2000 Since newly promulgated Insurance Ordinance, 2000 contained no saving vis a vis S.26(2) of repealed Insurance Act, 1938, R.5(c) of Fourth Sched. to Income Tax Ordinance, 1979 was not applicable for assessment year under review Addition made under R.5(c) of Fourth Sched. to Income Tax Ordinance, 1979 was not maintainable which was ordered to be deleted. PTD 1985 (Trib.) 255 and Mocsa Kazimi v. K.M. Sheriff AIR 1959 Mad. 542 ref. ORDER The captioned appeal has been filed by the assessee for the assessment year, 2001 2002 against order, dated 13 8 2002 passed by the learned CIT(A), Zone 1, Lahore. The assessee has agitated the confirmation by the learned Commissioner of Income Tax (Appeals) of addition of excess management expenses at Rs.26,260,445 only. The AR did not press grounds Nos.3, 4, 5 and 6 as re assessment was made by the DCIT under sections 62/132 on 21 12 2002 in consequence to order of CIT(A), dated 5 8 2002. The A.R. placed on file order passed under sections 62/132 by the Assessing Officer. 2. The brief facts of the case are that the assessee, a public limited company, derives income from the business of insurance. Return for the year under consideration was filed to declare income at Rs.26,260,445. Necessary books of accounts were produced in support of the declared version. The Assessing Officer from the perusal of record observed that management expenses were not claimed in the ratio to gross premium as allowed under Rule 40 of the Insurance Rules, 1958 governed by section 114 of Insurance Act, 1938. The assessee was…

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