Income Tax Ordinance (XXXI of 1979)---

----Sched. 1, Part III, para. A, Explanation (a) [as substituted by Finance Ordinance (II of 1978)]---"Retained income"---Tax payable could be treated as "retained income" for purposes of levy of surcharge.

Commissioner of Income-tax v. Pakistan Tobacco Company Ltd. 1988 PTD 66 and Commissioner of Income-tax v. Grindwheel (Pak.) Ltd. 1991 PTD 859 fol.

Shaikh Haider for the Department.

Rehan Hassan Naqvi for Respondent.

Date of hearing: 21st October, 1991.

JUDGMENT

NASIR ASLAM ZAHID, J.---On the application under section 136(1) of the Income Tax Ordinance filed by the department the following question has been referred by the Income-tax Tribunal for our opinion in respect of the assessment year 1979-80 of the assessee:--

"Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the tax payable could be treated as retained income for purposes of levy of surcharge?"

Learned counsel for the respondent points out that similar question has already been considered and answered by this Court in the case of Commissioner of Income-tax v. Pakistan Tobacco Company Ltd. (1988 PTD 66) and that in other references the said decision has been followed including the case of Commissioner of Income-tax v. Grindwheel (Pak.) Ltd. (1991 PTD 859). Mr. Shaikh Haider, learned counsel for the department concedes to this position but informs that the department has taken the matter before the Supreme Court where appeals filed by the department are pending.

Following our earlier decisions, the question referred to us by the present reference application is also answered in the affirmative. There will be no order as to costs.

M.B.A./C-244/K. Reference answered in the affirmative.