I.T.A. No.2166/LB of 2004, decided on 21st June, 2006. VS I.T.A. No.2166/LB of 2004, decided on 21st June, 2006., 2006 PTD-INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN 2827 (2006)

Income Tax Ordinance (XXXI of 1979)---

----S. 80D---Minimum tax on income of certain persons---Assessment order---Charge of tax under S.80-D of the Income Tax Ordinance, 1979 only on the basis of I.T. 30 and without any assessment order, was illegal.

A.D. Ashgar for Appellant.

S. Ashraf Ahmad Ali, D.R. for Respondent.

ORDER

The instant appeal has been filed by the assessee against order, dated 17-1-2004 passed by the learned CIT(A), Zone II, Lahore relating to the assessment year 1998-99 to agitate the charge of tax under section 80D to be unjustified. '

2. The learned AR on behalf of the appellant agitated the action of the First Appellate Authority as per grounds. In further support to appellant's grievances the learned AR referred to reported case of this Tribunal cited as 2003 PTD 622. As per this reported decision a Division Bench of the Tribunal has held:--

"In the explanation to section 80D it is clarified that turnover means the gross receipts, exclusive of trade discount rendering, giving or supplying services of benefits or from execution of contracts. The provisions of section 80D does not exclude the turnover and tax paid under section 80C for the purpose of working out minimum tax liability under this section. Order of the First Appellate Authority being fully justified is hereby held. The appeal of the Revenue fails."

On the other hand, the DR on behalf of the Revenue defended the order of the learned CIT(A) Zone II, Lahore.

3. We have heard both the sides and perused the available record. We find force in the arguments of the learned AR for the assessee appellant, and we have further observed that the tax under section 80D has been charged on the other sheet. There is no order recorded by the Revenue. In view of this situation we have no hesitation in holding that the charge of tax under section 80D of the Income Tax Ordinance, 1979 only on the basis of I.T.-30 and without any assessment order is illegal. We, therefore, annul the assessment on this score. The appeal filed by the assessee is accepted.

C.M.A./125/Tax (Trib.)Appeal accepted.