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Petitioner: COMMISSIONER OF INCOME TAX, CENTRAL ZONE KARACHI VS Respondent: Messrs MAY & JUDGMENT
Court Name: Sindh High Court Judge(s): Nasir Aslam Zahid, Muhammad Hussain Adil Khatri Title:COMMISSIONER OF INCOME TAX, CENTRAL ZONE KARACHI vs Messrs MAY &
JUDGMENT
Reported As: 1992 PTD 760 Result: Reference answered Judgment JUDGMENT ' NASIR ASLAM ZAHID, J.---On an application under section 136(1) of the Income Tax Ordinance, 1979, moved by the Department, the Income-tax Appellate Tribunal has referred the following question for our opinion:-- "Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the amount of tax liability falls within the purview of the expression "income as has been retained for the purpose of capitalisation or for meeting working capital requirement" as used in Para. 'A' of Part III of the First Schedule to the Income Tax Ordinance, 1979, read with section 10 of it and hence it was to be excluded from the total income for levy of surcharge?" 2. The matter refers to assessm ent year 1980-81 of the assessee. We have heard Mr. Sheikh Haider, learned counsel for the Department. Lu earlier decisions, this Court has decided this question against the Department. Detailed decision of the Court is given in the case of Commissioner of Income Tax v. Pakistan Tobacco Company (1988) PTD 66. Mr. Sheikh Haider concedes to this potation but submits that the Department has taken the matter to the Supreme Court where the appeals filed by the Department are pending. 3. Following our earlier decisions, the question referred to us in the present reference application is also answered in the affirmative.