1. SALEEM AKHTAR, J.--The respondent is a General Insurance Company. During the relevant assessm ent year respondent claimed an amount by way of provision for taxation, which was allowed and maintained by the Tribunal. On an application filed by the applicant the following question has been referred:- "Whether, on the facts and in the circumstances of the case, the Income--tax Appellate Tribunal was right in deleting the amount of add-back claimed by the assessee-company on account of provision for taxation or taxation reserve."
2. Both the learned counsel have referred to Commissioner of Income-tax Central Karachi v. Messrs Mercantile Fire and Central Insurance Co. Ltd. 1989 PTD 14% which was followed by an unreported judgment in Commissioner of Income-tax v Phoenix Assurance Co. Ltd. ITR No. 38 of 1982 decided on 31-10-1989. In the case of Commissioner of Income-tax Central Karachi v. Messrs Mercantile Fire and Central Insurance Co. Ltd. Reliance was placed on C.I.T. v. Alpha Insurance Co. Ltd. PLD 1981 S.C.
3. 293 where it was observed.
4. "Rules contained in the First Schedule to the Income-tax Act completely, exhaustively and to the exclusion of every other provision not expressly incorporated, govern the computation of profits and gains of insurance business."
5. Thus the Tribunal was justified in applying Rule 6. Following the aforesaid judgments we answer the question in the affirmative.