ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

I.T.A. No.99 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.

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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”.

(C) Whether the leaned Income Tax Appellate Tribunal misdirected itself in law by holding that interest credited to suspense account was income chargeable to tax under the Income Tax Ordinance, 1979.

Learned counsel for the appellant at the out set has contended that questions Nos. (A) & (B) are covered by the 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) and question No. (C) is covered by the Division Bench’s judgment of this Court in the case of M/S AMERICAN EXPRESS BANK LTD. V/S COMMISSIONER OF INCOME TAX (2009 PTD 1776).

Learned counsel for the respondent does not dispute such fact that above questions are covered by aforesaid two reported judgments of this Court and states that questions may be answered accordingly and this appeal may be disposed off in terms thereof.

Consequently, the questions raised in the appeal are answered in accordance with aforesaid two reported judgments 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