Income-tax Act (XI of 1922)--

----S.42(1)---Interest earned by .assessee from securities deposited outside Pakistan was not liable to tax under S.42(1).

General Bank of Naderland Limited v. Commissioner of Income-tax PLD 1991 SC 675 ref.

Ibrahim Pishori for Applicant.

Nasarullah Awan for Respondent.

Date of hearing: 16th September, 1991.

JUDGMENT

NASIR ASLAM ZAHID, J.---This reference has been made by Income-tax Appellate Tribunal at the request of the applicant/assessee for seeking opinion of this Court on the following question:--

"Whether in the facts and circumstances of the case, the Appellate Tribunal was right in holding that interest earned from securities in question, deposited outside Pakistan in each of the four years under reference, is liable to tax under section 42(1) of the repealed Income Tax Act, 1922?"

2. We have heard Mr. Ibrahim Pishori, learned counsel for the applicant/assessee and Mr. Nasarullah Awan, learned counsel appearing for the Department. Mr. Ibrahim Pishori, learned counsel for the applicant, pointed out that in a recent decision by the Supreme Court of Pakistan in the case of General Bank of Naderland Limited v. Commissioner of Income Tax reported in PLD 1991 SC 675, a similar question was considered and decided against the Department. Mr. Nasarullah Awan, learned counsel for the Department, concedes to this position. The matter stands concluded by the decision of the Supreme Court.

3. In the circumstances the question referred to us in this reference is decided in the negative.

There will be no order as to costs.

M.BA./A-1163/K Reference answered in negative.