ORDER SARDAR MUHAMMAD ANWAR A. KHAN, JUDICIAL MEMBER.- Four appeals pertaining to the assessment years 1987-88, 1990-91 and 1991-92 have been filed against the order of the CIT(Appeals) dated 18.12.1991 of the learned CIT(Appeals), Gujranwala to call question the legality of the same. The appeals filed by a private limited company are as under: -
1. A/year 1987-88 against order u/s. 62
2. A/year 1987-88 against order u/s. 156
3. A/year 1990-91 against order u/s. 62
4. A/year 1991-92 against order u/s. 62 Appeal under Section 156 (Asstt. Year 1987-88)
2. The appellant-company derived income from the manufacture and sale of laundry and toilet soap during the years under consideration.
3. The assessee-company to has come up in second appeal against the order dated 18.12.1991 of the learned CIT(Appeals). The learned CIT(Appeals) set aside order under section 156 of the Income Tax Ordinance, 1979 dated 4.6.1990. With the directions to the assessing officer to re- examine the claim of the assessee in respect of initial depreciation under the Rules. The assessee had argued before the learned CIT(A) that no initial depreciation had been allowed to the assessee by the assessing officer in the order under section 156 of the Ordinance. The same arguments were adopted before the Tribunal. It was argued that initial depreciation could not be claimed in the immediately preceding year as the machinery functioning during the assessment year 1987-88. Specific and definite directions have been given by the CIT(Appeals) to the assessing officer to look into the claim of the assessee to allow initial depreciation, if the assessee in forth entitled to under the circumstances of the case. The impugned order of the learned CIT(Appeals) does not suffer from any legal of factual lacuna. No ground for interference has been made out by the learned AR of the assessee. The assessee appeal fails.
APPEALS UNDER SECTION 62 (ASSESSMENT YEARS 1987- 88, 1990-91 AND 1991-92)
4. For these assessm ent years, the assessee-company have challenged the additions/curtailments out of the P&L account expenses to be totally un-called for or highly excessive. For the assessm ent year 1987-88 the credit for tax deduction at source u/s. 50 omitted by the to and non-allowance by the CIT(A) is also challenged, for the assessment year 1991-92 tax u/s. 80D levied at Rs. 131,596/- of the Income Tax Ordinance, 1979 has also been challenged.
5. The learned AR of the assessee confined his arguments to the point of dis-allowance made out of the P&L account expenses. We have heard the learned DR and the AR also perused the record. So far as the dis-allowances made out of the P&L Account expenses for the assessment year 1987-88 is concerned, the same have been made on seasonable grounds and do not call for any interference on our behalf.
The expenses under the head printing & stationery, were claimed at Rs. 33,284/-, the assessment year 1990-91. The to dis-allowed Rs. 12,000/- which were reduced by the learned CIT(Appeals) to Rs.
10,000/-. The same are slightly excessive and are reduced to Rs. 6000/-. The addition made on account donations for the assessme nt year 1990-91 is also deleted following the past history of the assessee.
For the assessm ent year 1991-92, the assessee claimed Rs. 43,572/- under the head. Repair and Maintenance, The to disallowed Rs. 12,000/- which addition was reduced by the learned CIT(A) to Rs. 10,000/-. For the assessm ent year 1987-88 under this head Rs. 56,963/- were claimed by the assessee and the to dis-allowed Rs. 15,000/- which additions was further to Rs. 10,000/- by the learned CIT(A). For the assessm ent year 1990-91 under this head the assessee claimed Rs. 61,543/- out of which Rs. 16,000/- were dis-allowed and the same addition was reduced to Rs. 12,000/- by the learned CIT(A). For the year under consideration addition as reduced by the learned CIT(A) is proper reasonable and is maintained.
The disallowance under the 'General Expenses' for the assessment year 1991-92 is on. The higher side last year expenses under this head were claimed at Rs. 39404. A sum of Rs. 10,000/- was added back. This year expenses are claimed at Rs. 15,000/- to added back Rs. 5000/- considering the amount of expenses claimed this year to be reasonable. The addition is deleted.
6. All other additions made for the assessment years 1987-88, 1990-91 and 1991-92 are according to the history of the assessee and do not call for any interference on our behalf.
7. All the- appeals of the assessee are disposed of to the extent and in the manner indicated above.