' NASIR ASLAM ZAHID, C.J.---In this reference application under section 66(1) of the Income Tax Act, 1922, the following questions have been referred by the learned Income Tax Appellate Tribunal for our opinion: Question for the years 1972-73.1973-74 and 1974-75.
"Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in ordering deletion of the addback of Rs,1,23,856 (Rs,76,692 and Rs,81,360 for the years 1973-74 and 1974-75) claimed by the assessee-company on account of provision for taxation or taxation reserve?"
Question for the years 1972-73 and 1973-74 "Whether on the facts and in the circumstances of the case, the learned Appellate Tribunal is justified in deleting the addition of outstanding Trading liability of Rs,59,185 (Rs,82,754 for the year 1973-74) under section 10(2A) of the Income Tax Act on the grounds that section 10 is not applicable in the case?"
2. We have heard Mr. Shaik Haider, Advocate for the Department. The questions referred to for our opinion are already covered by reported decisions of the Supreme Court and this Court. The first question relating to the addback claimed by the Assessec Insurance Company on account of provision for taxation is covered by the decision of the Supreme Court in the case of Commissioner of Income-tax v. Phoenix Assurance Company. Limited, reported in 1991 PTD 1028. The second question relating to add back of outstanding Trading liability under section 10(2A) of the Income Tax Act is covered by the decision of this Court in the case of Commissioner of Income-tax, Central v. Mercantile Fire and Central Insurance Company Limited, (1989 PTD 142). Both the decisions have been against the Department.
3. In the circumstances, following the aforesaid decisions, the questions are answered in the affirmative. There will be no order as to costs.