1997 PLP (Trib (PTD)

SARDAR MUHAMMAD ANWAR A. KHAN (JUDCIAL MEMBER).

Four appeals pertaining to the assessment years 1987-88, 1990-91 and 1991-92 have been filed against the order of the CIT (Appeals), dated 18-12-1991 of the learned CIT(Appeals), Gujranwala to call questions the legality of the same. The appeals filed by a private limited company are as under:- (1) A/year 1987-88 against order under section 62. (2) A/year 1987-88 against under section 156. (3) A/year.1990-91 against order under section 62. (4) A/year 1991-92 against order under section 62._ APPEAL UNDER SECTION 156 (ASSESSMENT YEAR 1987-88)

2. The appellant-company derived income from the manufacture and sale of laundry and toilet soap during the years under consideration.

3. The assessee-company has come up in second appeal against the order, dated 18-12-1991 of the learned CIT (Appeals). The learned C.I.T. (Appeals) set aside order under section 156 of the Income-tax Ordinance 1979, dated 4-6-1990. With the directions to the assessing officer to re- i examine the claim of the assessee in respect of initial depreciation under the Rules. The assessee had argued before the learned CIT(A) that no initial depreciation had been allowed to the assessee by the assessing officer in the order under section 156 of the Ordinance. The same arguments were adopted before the Tribunal. It was argued that initial depreciation could not be claimed in the immediately preceding year as the machinery functioning during the assessment year 1987-88. Specific and definite directions have been given by the CIT (Appeals) to the assessing officer to look into the claim of the assessee to allow initial depreciation, if the assessee in fact entitled to under the circumstances of the case. The impugned order of the learned CIT(Appeals) does not suffer from any legal or factual lacuna. No ground for interference has been made out by the learned A.R. of the assessee. The assessee's appeal fails.

4. For these assessment years, the assessee-company have challenged the additions curtailments out of the P&L account expenses to be totally un?called for or highly excessive. For the assessment year 1987-88 the credit for tax deduction at source under section 50 omitted by the I.T.O. and non-allowance by the C.I.T.(A) is also challenged, for the assessment year 1991-92 tax under section 80-D levied at Rs.131,596 of the Income-tax Ordinance, 1979 has also been challenged.

5. The learned A.R. of the assessee confined his arguments to the point of disallowance made out of the P&L account expenses. We have heard the learned D.R. and the A.R. also perused the record. So far as the disallowances made out of the P&L Account expenses for the assessment year 1987-88 is concerned, the same have been made on seasonable grounds and do not call for any interference on our behalf. The expenses under the head printing and stationery, were claimed at Rs.33,284, the assessment year 1990-91. The I. T. O disallowed Rs.12,000 which were reduced by the learned C.I.T.(Appeals) to Rs.10,000, The same are slightly excessive and are reduced to Rs.6,

000. The addition made on account donations for the assessment year 1990-91 is also deleted following the past history of the assessee. For the assessment year 1991-92, the assessee claimed Rs.43,572 under the head repair and Maintenance, the I.T.O. disallowed Rs.12,000 which addition was reduced by the learned CIT (A) to Rs.10,

000. For the assessment year 1987-88 under this head Rs.56,963 were claimed by the assessee and the I.T.O. disallowed Rs.15,000 which additions was further to Rs.10,000 by the learned C. I. T. (A). For the assessment year 1990-91 under this head the assessee claimed Rs.61,543 out of which Rs.16,000 were disallowed and the same addition was reduced to Rs.12,000 by the Teamed C.LT.(A). For the year under consideration addition as reduced by the learned C.I.T.(A) is proper reasonable and is maintained. The disallowance under the General Expenses for the assessment year 1991-92 is on. The higher side last year expenses under this head were claimed at Rs.39,

404. A sum of Rs.10,000 was added back. This year expenses are claimed at Rs.15,000 I.T.O. added back Rs.5,000 considering the amount of expenses claimed this year to be reasonable. The addition is deleted.

6. All other additions made for the assessment years 1987-88, 1990-91 and 1991-92 are according to the history of the assessee and do not call for any interference on our behalf.

7. All the appeals of the assessee are disposed of to the extent and in the manner indicated above. M.B.A./186/T????????????????????????????????????????????????????????????????????????? Order accordingly