I.T.A. NO.3928/LB OF 2000 VS I.T.A. NO.3928/LB OF 2000
2001 P T D (Trib.) 2564
[Income-tax Appellate Tribunal Pakistan]
Before Khawaja Farooq Saeed, Judicial Member
I.T.A. No.3928/LB of 2000, decided on 10/03/2001.
Income Tax Ordinance (XXXI of 1979)---
----Ss.50(7E) & 59---Deduction of tax at source---Self-Assessment-- Contention that tax deducted after 30th of June and before filing of return had to be calculated for qualifying the return under Self-Assessment Scheme---Validity---Deduction made on bills after 30th of June could not be allowed for adjustment against demand of the taxes for the relevant assessment year---Case did not fall within the purview of Self-Assessment Scheme.
Muhammad Imran Rashid and Ch. Abdul Ghafoor, .T.P. for Appellant.
Javed-ur-Rehman, D.R. for Respondent.
Date of hearing: 3rd February, 2001.
ORDER
Selection of the case for normal law assessment on default of payment of tax by Rs.440 is being assailed by the assessee.
The assessee says that the payment of tax deducted by the authorities after 30th of June and before filing of return was also to be calculated to which I cannot agree in view of the provisions of section 50(7E). The said provision in unequivocal terms speak of giving effect to the deductions made within the financial year. Such deduction can also be treated as a substitute of advance tax under section 53, against tax demand of such assessee. In this regard the judgments referred by the assessee are also respectfully being ignored. The language of section 50(7E) is clear in its application. I, therefore, hold that the deduction made on bills after 30th of June cannot be allowed for adjustment against demand of the taxes for the Assessment year which starts on 1/7 i.e. next following the said financial year. For readyreference the section is reproduced as follows:
"At the time of preparing electricity consumption bills in respect of any commercial or industrial consumer, the person responsible for preparing such bills, shall charge tax oh the amount of the electricity bill at the rates specified in the First Schedule, and the credit for the tax so collected in any financial year stall subject to the provisions of section 53, be given in computing the tax payable by such consumer for the assessment year commencing on the first day of July next following the said financial yep, or in the case of an assessee to whom section 72 or section 81 applies, the assessment year in which the 'said date' as referred to therein falls, whichever is the later.
In view of discussion as above, I disagree with leaned A.R. that his case is covered within the purview of Self-Assessment.
As regards his second argument that estimate of receipts is bald and the I.T.O. should have applied G.P. on the estimated receipts, his contention is correct. The assessee is involved in manufacturing of machinery parts. However, since before me facts of the case regarding consumption of electricity units assessee stock, nature of accounts etc. is not available, I am not in a position to calculate the taxable income of the assessee. The matter, therefore, is referred back to the Assessing Officer for this purpose only. The issue regarding Self-Assessment Scheme, however is decided against the assessee.
The appeal is accordingly finalized.
C.M.A./M.A.K./86/Tax (Trib.) Appeal disposed of accordingly.