COMMISSIONER OF INCOME-TAX VS PAKISTAN OXYGEN LTD.
1991 P T D 914
[Karachi High Court]
Before Nasir Aslam Zahid and Muhammad Hussain Adil Khatri, JJ
COMMISSIONER OF INCOME-TAX
Versus
PAKISTAN OXYGEN LTD.
I.T.R. No. 465 of 1990, decided on 30/05/1991.
Finance Ordinance (XXV of 1980)---
----Sched. I, Part III, para. A---"Retained income"---Provision for taxation being "retained income" as requirement of working capital was not liable for surcharge.
Commissioner of Income-tax v. Pakistan Tobacco Co. Ltd. etc. 1988 PTD 66 and Commissioner of Income-tax v. M/s. Sindh Alkalies (Pvt.) Ltd. I.T.C. No. 374 of 1990 fol.
Nasrullah Awan for Applicant.
Khalifa Salahuddin for Respondent.
Date of hearing: 30th May, 1991.
JUDGMENT
MUHAMMAD HUSSAIN ADIL KHATRI, J.---The Income-tax Appellate Tribunal has referred the following question under section 136(1) of the Income Tax Ordinance, 1979:
"Whether under the facts and circumstances of this case the surcharge is leviable on amount of taxes payable?"
The aforesaid question was considered by a Division Bench of this Court I in the case of Commissioner, Income Tax v. Pakistan Tobacco Co. Ltd. etc. 1988 P T D 66 and was answered in affirmative and after considering authorities on the subject it was held that the provision for taxation is retained income as requirement of working capital and is not liable for surcharge. The aforesaid authority was followed by this Bench in I.T.C. No.374/90 (Commissioner of I Income tax v. M/s. Sindh Alkalies (Pvt.) Ltd.)
Following the earlier decision the question is answered in affirmative.
M.BA./C-218/KOrder accordingly.