1998 PLP (Trib (PTD)
N/A
| Citation | 1998 PLP (Trib (PTD) |
| Forum / Court | Income-tax Appellate Tribunal Pakistan |
| Bench Members | Iftikhar Ahmad Bajwa, Accountant Member |
| Parties | N/A |
| Primary Law | (a) Income Tax Ordinance (XXXI of 1979), (b) Income Tax Ordinance (XXXI of 1979) |
Q1: What are the key laws and sections cited in 1998 PLP (Trib (PTD)?
This judgment primarily cites: (a) Income Tax Ordinance (XXXI of 1979), (b) Income Tax Ordinance (XXXI of 1979) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1998 PLP (Trib (PTD)?
The case was heard and decided by the Income-tax Appellate Tribunal Pakistan bench comprising: Iftikhar Ahmad Bajwa, Accountant Member.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1998 PLP (Trib (PTD) (N/A). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- M.R. Farooqi, I.T.P. for Appellant.
- Abdul Rashid, D.R. for Respondent.
- Date of hearing: 11th March, 1995.
Headnotes / Summary
Ss.22 & 32
Estimate of sales
History of case- Additions in trading account
Assessee returned sales applying his own G.P. rate
Assessing Officer, rejecting Sales and G.P. rate declared by assessee estimated both sales and G.P. rate at higher figures despite the fact that assessee had the history of acceptance of his accounts
Held, addition in trading account being contrary to the history of the case, was unwarranted in circumstances.
S. 24 (cc), proviso [as added by Finance Act (VII of 1992)]
Director's remuneration as claimed by assessee was reduced by I.T.O. to 40% in pursuance of S.24(cc) of the Income Tax Ordinance, 1979
Held, provisions of S.24(ec), Income Tax Ordinance, 1979 [as added by Finance Act, 1992] being not applicable to assessment year 1991-92 in view of proviso to cl. (cc) of S.24 of the Income Tax Ordinance, 1979 to the addition so made by the Department had no sanction in law.
Judgment & Decree
Abdul Rashid, D.R. for Respondent. Date of hearing: 11th March, 1995. Appellant, a Private Limited Company, deriving income from manufacturing and sale of Electric Stabilisers, Regulators, Rectifiers, etc. is contesting certain additions in trading as well as P&L Account for assessment year 1991-92.
2. For the year under appeal, declared GP rate of 33.625/on sales of Rs.7,84,560 was not accepted and G.P. Q 35% was applied on sales estimated at Rs.8,00,
000. This resulted in addition of Rs.13,411 in the trading account. Though the appellant has a history of acceptance of accounts and position of accounts and other circumstances during the year under appeal were the same as in the past, the CIT(A) upheld the addition for being on nominal nature. Some relief in respect of P&L expenses was also allowed but on the point of treatment of director's remuneration, he directed to I.T.O. to rectify the order in accordance with the amended law. Appellant's Authorised Representative does not contest additions under other heads of P&L Account but addition in the trading account as well as under the head director's remuneration are vehemently disputed.
3. Addition in the trading account indeed was contrary to the history of the case and unwarranted by the circumstances of the case. The CIT(A)was, therefore, not justified to maintain the addition even if it was of a nominal nature. The addition being unwarranted and unjustified is hereby deleted.
4. An amount of Rs.1,08,000 had been claimed as director's remuneration. The I.T.O. had allowed Rs.33,742 representing 40% of the total income in accordance with clause (CC) of section 24 of the Income Tax Ordinance. The amendment in question was not applicable to assessment year 1991-92 as per proviso to the said clause inserted vide Finance Act. 1992. The addition under this head was without any sanction in law and is accordingly deleted.
5. The appeal succeeds as above. M.B.A. /401/Trib. Appeal allowed.