Income Tax Ordinance (XXXI of 1979)---

----S.80-C---Contractors and importers---Amount paid as sales tax cannot be deemed to be the income of the assessee and as such, cannot be subjected to payment of income-tax---Tax liability of the assessee shall be worked out after deducting the sales tax paid.

Mian Ashiq Hussain for Petitioner.

Muhammad Ilyas Khan for Respondents.

Date of hearing: 15th February, 1994.

JUDGMENT

In this petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, the grievance of the petitioner is that while computing tax under section 80-C of the Income Tax Ordinance, 1979, sales tax paid on goods supplied by the petitioner has also been included in the income of the petitioner, though it was not permissible for respondents under the law to do so.

2. Mr. Muhammad Ilyas Khan, learned counsel appearing for respondents on instructions from respondents has conceded that while charging income tax under section 80-C of the Income Tax Ordinance, 1979, the amount paid as sales tax cannot be deemed to be the income of the petitioner and as such, cannot be subjected to payment of income tax. He submits that tax liability of the petitioner shall be worked out after deducting the sales tax paid.

In this view of the matter, the petition fructifies and is disposed of accordingly.

M.BA./R-128/L

Order accordingly.