The Assessing Officer during the passing of an assessment order came across the certain amounts, which were shown to have been deducted under section 50(4) of the Income Tax Ordinance, 1979; the assessee claims the credit of this amount, which was disallowed against the above order, the respondent/assessee filed an appeal before the CIT (Appeals) and the CIT Appeals came to the conclusion "Thus there appears to be no justification to treat the sale/lease back of certain assets tax-deductible under section 50(4) of the Income Tax Ordinance, assessed under sections 62/80(e) simultaneously". Aggrieved of this the Department went in second appeal and the Tribunal has upheld the order of the CIT (Appeals) in the following words:-- "In support of his contention, learned A.R. Has relied on the decision of the I.T. A.T. Vide order dated 27-5-1998 in I.T.A. No,749/LB of 1997 and I.T.A. No,1823/LB of 1997 for the assessment year 1993-94, in the case of Messrs Chanab Fabric , Faisalabad, wherein it has been held that the transaction on account of buy and lease back arrangement does not attract the provisions of section 80(C) of the Income Tax Ordinance, 1979."
2. Learned counsel for the appellant by relying upon the provisions of section 54 of the Transfer of the Property Act, 1882, states that the sale has been defined and the supply of the goods, through the lease and buy-back agreement, is a sale in terms of the above. We are afraid that the section has no application to the lease agreement of the goods made by the Modaraba Companies to its client.
3. As regards the provisions of section 80(C) of the Income Tax Ordinance, 1979, it is argued that no exemption/ distinction has been allowed to the sale/purchase through buyback lease transaction.
But we find the contention as misconceived, as it has been rightly held to be otherwise by the Tribunal and the CIT (Appeals). This appeal has no force and is dismissed.