I.T.As. Nos.537/KB and 538/KB of 2002, decided on 23rd May, 2002. VS I.T.As. Nos.537/KB and 538/KB of 2002, decided on 23rd May, 2002., 2002 PTD-INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN 2670 (2002)

Income Tax Ordinance (XXXI of 1979)‑‑‑

‑‑‑First Sched. , Part I. Cl. CCC(a)(i)‑‑‑Rate of tax‑‑‑Value of contract or contracts‑‑‑Five per cent. tax to be charged where value of single contract did not exceed Rs.30 million while six per cent. where aggregate value of‑ number of contracts exceeded Rs.30 million.

I.T.A. No. 1555/KB of 1999‑2000 rel.

Abdul Tahir, I. T. P. for Appellant. Sajjad Ahmed, D.R. for Respondent.

Date of hearing: 23rd May, 2002.

ORDER

SYED KABIRUL HASAN (JUDICIAL MEMBER).‑‑‑In these appeals, there is a dispute of application of rate of tax only. According to learned A. R. of the assessee, the rate of tax applicable is 5 % whereas the Department's contention is that the rate of deduction is 5 % under section 50(4) of the Income Tax Ordinance, 1979. The assessment years involved are 2000‑2001 and 2001‑2002.

2. We have heard Mr. Abdul Tahir, learned A.R. of the assessee and Mr. Sajjad Ahmed, learned D.R. We have also perused the orders of learned CIT (A) as well as the Assessing Officer.

3. The main contention of learned A.R. is that clause CCC (a)(i) of Part 1 of the First Schedule to the Ordinance clearly spells out that "where the value of contract does not exceed Rs.30 million", the rate of tax deduction under section 50(4) shall be 5 % .

In support of this, he has relied upon the order of the Tribunal in I.T.A. No. 1555/KB of 1999‑2000 (assessment year 1999‑2000) dated 30‑4‑2002.

4. Mr. Sajjad Ahmed, learned D.R., on the other hand, has submitted that the provision of the section clearly mentions that 6 % tax will be applied on the total value of contract not on the basis of single contracts as envisaged in the provision.

5. In our view, the finding of the Tribunal cited above in the said order, clearly spells out as under:‑‑‑

"We have heard learned .representatives of both the parties and have also perused the impugned order of the learned CIT (A) and the order under section 59(A) of the Income Tax Ordinance, 1979, passed by the DCIT. We are of the view that the learned CIT (A) has rightly directed to delete the tax @ 6 % against 5 % charged by the assessee as there were separate contracts, tender of whom were publicized on the various dates, and the locations of the projects is also of the different places."

6. We respectfully following the order of the Tribunal, direct the Assessing Officer to charge tax @ 5 % .

7. These appeals are disposed of as above:

8. The interim stay granted by order dated 11‑4‑2002 is also disposed of alongwith these appeals.

C.M.A./M.A.K./372/Tax(Trib.)

Order accordingly.