C.I.R. (LEGAL), LTU, ISLAMABAD versus AL GHURAIR GIGA PAKISTAN (PVT.) LTD.
Compensating other income expenditures other than expenses, sections 56, i 57 (iii), 21 and 39, the officer assessing the second income observed that the loss was settled only after adjusting for expenditure in respect of business income. It may be that the main proportion of income was that there was no such thing. Until now, business income received by Assissee cannot be claimed as a deduction recognized under Section 21 of the Income Tax Ordinance 2001 if no income was received at the initial stage and expenses are incurred, The same goes for negative income. In earnings, expenses will be ineligible for deduction only if such expenditures do not result in any income in a particular estimated year, but if some income, small or nominal, will be eligible for deduction Otherwise the appropriate expenses could not be stopped. Just because there was no revenue collection, whatever reasonable expenditures should be deducted through expenses, must be debited regardless of whether or not the income was collected and there was clearly a need for proper accounting and income tax. The interpretation of the Ordinance 2001 cannot be different from Section 57 (iii). The business loss was correctly counted by the taxpayers earning or earning income and was available for exemption against income received from other sources under section 566 of the Income Tax Ordinance 2001, which included the balance business loss. Adjustments against future business income should be taken forward. In terms of section 577 of the Income Tax Ordinance, 2001
