ORDER SHEET

HIGH COURT OF SINDH, KARACHI

ITRA NO. 46/2012

Date Order with signature of Judge

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1. For katcha peshi.

2. For hearing of CMA 25/12

30.05.2012

Mr. Agha Zafar, Advocate for applicant.

Mr. Tariq Masood.

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We have reconsidered the questions of law proposed by the Applicant and are of the view that only following questions of law proposed by the applicant need to be answered.

1. Whether on the facts and circumstances of the case, the learned Tribunal was right to hold that the receipt of Rs.399,892,319/- being the sales for the Ist quarter (1-7-2004 to 30—9-2004) does not fall under Final Tax Regime (FTR).

2. Whether the learned Tribunal was justified to hold that tax provisions of 153(6) does not apply on sale of goods by a manufacturer who has filed option for taxation under PTR/FTR under clause (4)) of the 2^nd Schedule of Part IV, a position which according to the learned Tribunal emerges if clause (41A) of the 2^nd Schedule of Part IV is read in conjunction with sub-section (6A) of Section 153 of the Ordinance 2001.

3. Whether on the facts and circumstances of the case, the learned Tribunal was right to hold that the judgment in the case of Fauji Oil Terminal vs. CIT (2006 PTD 734) (HC Kar), which case states that action under section 122(5A) cannot be taken in cases where statement under section 115(4) of the Income Tax Ordinance, 2001 is filed, is distinguishable for the reason that it pertains to clause (9C) & (42) of Part IV of the 2^nd Schedule of the repealed Ordinance, 1979 and does not pertain to clauses (4) of the 2^nd Schedule of Part IV of the Ordinance, 2001.

4. Whether on the facts and circumstances of the case, the learned Tribunal was right to uphold that Scientific Research Expenditure of Rs.3,783,000/- does not fall under section 26 being an expenditure within the meaning of ‘intangibles’ as defined under section 24(11) and thus only amortization deduction under section 24 of the Ordinance, 2001 is permissible.

For the reasons to be recorded later on all the above questions are answered in affirmative against the Applicant and in favour of the Department. Let 50% of the liability be paid by the applicant within a week and the balance amount be paid within 60 days.

JUDGE

sharif