Income Tax Ordinance (XXXI of 1979)---

----First Sched., Part III & S.4---Provision/liability for tax falls within the purview of the expression "income as retained for meeting working capital requirements" as used in First Sched., Part III of the Finance Ordinance, 1978 read with S.4 of the said Ordinance and is to be excluded from the levy of surcharge.

Commissioner of Income Tax v. Pakistan Tobacco Co. Ltd. 1988 PTD 66 fol.

Sheikh Haider for Applicant. Iqbal Naeem Pasha for Respondent.

Date of hearing: 18th November, 1991.

JUDGMENT

NASIR ASLAM ZAHID, J.---On an application filed under section 136(1) of the Income Tax Ordinance filed by the department in respect of assessment year 1978-79 of the assessee the following question has been referred to us by the Income Tax Appellate Tribunal for opinion:--

"Whether on the facts and circumstances of the case the Appellate Tribunal was justified in holding that provision/liability for tax falls within the purview of the expression income as retained for meeting working capital requirements' as used in Part III of the First Schedule to the Finance Ordinance, 1978 read with section 4 of the said Finance Act and hence it is to be excluded from the levy of surcharge."

We have heard Mr. Sheikh Haider, learned counsel for the department, and Mr. Iqbal Naeem Pasha, learned counsel for the assessee.

2. Similar questions have been considered previously in various earlier decisions and decided against the department. A detailed judgment of this Court has been given in the case of Commissioner of Income Tax v. Pakistan Tobacco Co. Ltd. 1988 PTD 66. Mr. Sheikh Haider concedes to this position but submits that the department has taken the matter before the Supreme Court where appeals filed by the department are pending.

3. Following our earlier decisions, the question referred to us in the present reference application is also answered in the affirmative.

There will be no order as to costs.

M.B.A./C-261/K Reference answered.