HUB POWER COMPANY LTD., ISLAMABAD versus COMMISSIONER INLAND REVENUE (AUDIT), ZONE-III, LTU, ISLAMABAD
Second Schedule, Part I, CL () 74), Sections 2020 ((1), 122 (5A) and 122 (9)) Waiver Term Deposit Taxpayers claimed that profits attributable to the call and period. The tax was exempt from the profit on the loan by treating the same. Deposits similar to those outside the scope of the exemption; and the total exemption under Part 1 of the Second Schedule to the Income Tax Ordinance 2001 (74) was substantial. Revenue claimed that term / call deposits were generally held deposits - a financial institution for a fixed period; which could include both profits on loan from bank accounts as well as bank deposits. Also, when the Term Deposit / Call Deposit is opened, the lender (Consumer) understands that the money can be withdrawn only after the expiry of the period or by giving notice for a predetermined day. As the timeframe is specific, the funds in such reserves were not used in the company / project process and the profit received was not exempt from the claim and the entire interest was exempt from claiming income. In the second section of the Income Tax Ordinance 2001 Second Schedule to Taxes ((74)), interest and misrepresentation did not cover the deposits for the purpose of exemption from income tax because the accumulated period was not straightforward. Was not connected with financial transactions relating to the operations of the project and was removed from the scope of Part 1 (74) of Part 1 of Schedule 1 of the Second Schedule to the Income Tax Ordinance 2001, provided by the Income Tax Ordinance 2001 Company Regarding the usual business practices, only bank deposits will not be exempt from long-term deposits nor strictly exempt provisions
