COMMISSIONER OF INCOME TAX, COMPANIES-I, KARACHI VS Messrs EASTERN SERVICES (PVT.) LTD., KARACHI
2005 P T D 2429
[Karachi High Court]
Before Muhammad Mujeebullah Siddiqui and Khilji Arif Hussain, JJ
COMMISSIONER OF INCOME TAX, COMPANIES-I, KARACHI
Versus
Messrs EASTERN SERVICES (PVT.) LTD., KARACHI
Income Tax Case No. 52 of 1992, decided on /01/.
th
August, 2005. Income Tax Ordinance (XXXI of 1979)---
----Ss.59(3) &136 --- Reference to High Court---Question as framed for reference was whether profit on sale of plot was capital gain and was exempt from tax or not, when the assessee was a contractor and a builder and plot in question was stock-in-trade---.Questions proposed had not arisen out of the order of the Tribunal---Tribunal had not given any finding on the point as to what was the nature of income---Only finding given by the Tribunal was that the adjustment sought was to be made in exercise of powers under S.59(3) of the Income Tax Ordinance, 1979 was beyond the purview of the provisions---Tribunal had rightly found that the jurisdiction of Assessing Officer under S.59(3) of the Ordinance was confined to minor adjustments and was not extended to making a probe on a disputed question of fact---Reference application being without substance was dismissed by the High Court.
(1986) PTD 380 ref.
Jawaid Farooqi for Applicant.
Muhammad Farogh Naseem for Respondent.
ORDER
After rejection of reference application under section 136(1) of the Income Tax Ordinance, 1979 by the learned ITAT, the Revenue has submitted this application with a prayer that the following questions of law arising out of the order of Tribunal may be admitted for consideration.
(1) Whether on the facts and in the circumstances of the case the learned Tribunal was justified in rejecting the departmental appeal relying on the case-law reported as 1986 PTD 380 which is not at all identical to this case.
(2) Whether on the facts and in the circumstances of the case the question arises whether profit on sale of plot is capital gain and is exempt from tax or not, when the assessee is a contractor and builder and plot in question was stock-in-trade.
We have heard Mr. Jawaid Farooqi, learned counsel for the applicant and Mr. Muhammad Farogh Naseem, learned counsel for the respondent.
After perusal of the Tribunal's order, dated 5-5-1991, we find that the questions proposed do not arise out of the order of Tribunal. The Tribunal has not given any finding on the point as to what was the nature of income. The only finding is that the adjustment sought is to be made E in exercise of powers under section 59(3) of the Income Tax Ordinance was beyond the purview of provisions. Even otherwise, there is no cavil to the proposition that the Tribunal has rightly held that the jurisdiction of Assessing Officer under section 59(3) is confined to minor adjustment and is not extended to making a probe on a disputed question of fact.
The Reference application is without substances, which stands dismissed accordingly.
M.B.A./C-34/KApplication dismissed.