ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

I.T.A. No.97 of 1999

                                                                                                                   Date                       order with signature of Judge                            

FOR REHEARING.

13/10/2009.

Mr. Iqbal Salman Pasha, Advocate for the appellant.

Mr. Jawaid Farooqui, Advocate for the respondent.

>>>>>>>> <<<<<<<<

          The following questions of law have been raised in this appeal.

(A)     Whether the learned Income Tax Appellate Tribunal misdirected itself in law by ignoring provisions of section 50 of the Income Tax Ordinance, 1979 whereunder “interest on securities” alongwith a portion thereof deducted as tax is deemed to be income of the payee when it is “paid” to him.

(B)      Whether “interest on securities” is chargeable to tax under the Income Tax Ordinance, 1979 on “receipt basis”.

          It is contended by the learned counsel for the appellant that the above two questions of law are covered by a Division Bench’s judgment of this Court in the case of HABIB BANK LTD. KARACHI V/S COMMISSIONER OF INCOME TAX, KARACHI (2009 PTD 443). Learned counsel for the respondent does not dispute such fact and states that this appeal may be disposed off in terms thereof.

Consequently, the questions raised in the appeal are answered in accordance with aforesaid reported judgment of this Court and this appeal is disposed off accordingly.

Copy of this order be sent to the Registrar, Income Tax Appellate Tribunal.

       J U D G E

                                                                            J U D G E