The COMMISSIONER INLAND REVENUE ZONE-I, REGIONAL TAX OFFICE, QUETTA vs QUETTA ELECTRIC SUPPLY COMPANY LIMITED,

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The COMMISSIONER INLAND REVENUE ZONE-I, REGIONAL TAX OFFICE, QUETTA VS QUETTA ELECTRIC SUPPLY COMPANY LIMITED, QUETTA Ss.113, 133, Second Schedule Part I clause (102A) & Part IV---Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997), S.31(2)---Reference---Minimum tax on income---Subsidy on tariff---Question was with regard to subsidy on tariff as part of turnover, given by respondent taxpayer to its consumers---Validity---Electric supply companies were exempt from minimum tax under S.113 of Income Tax Ordinance 2001 from the date of their creation upto the date of completion of process of corporatization i.e. till the tariff was notified---Since such period had already lapsed hence under Part IV of Second Schedule to Income Tax Ordinance, 2001 no exemption from minimum tax under S.113 of Income Tax Ordinance, 2001 was available to electric supply companies---Amount received / receivable by electric power supply companies from Federal Government on account of difference between lower than NEPRA Tariff rate charged to consumers and rate notified by NEPRA was not subsidy---Such was balance price of electricity which was paid by Government on behalf of electricity consumers to provide relief to such consumers---Electric power supply companies received their full price of electricity sold to consumers partly from consumers and partly from Government---Such total amount constituted gross revenue on account of sale of electricity and such revenue was liable to minimum tax under S. 113 of Income Tax Ordinance, 2001 unless specific exemption was brought into Part IV of the Second Schedule to Income Tax Ordinance, 2001---Appellate Tribunal Inland Revenue erred in holding TDS as subsidy and exempt from minimum tax under S.113 of Income Tax Ordinance, 2001---Appellate Tribunal Inland Revenue also erred in treating TDS as trade discount because trade discount although mentioned on sale invoices was not charged from buyers---In case of electricity bill no such trade discount was mentioned which was not received from consumers---Appellate Tribunal Inland Revenue erroneously referred to Cl. (102A) Part I of the Second Schedule to Income Tax Ordinance, 2001, while discussing exemption from minimum tax under S.113 of Income Tax Ordinance, 2001---Part I of the Second Schedule to Income Tax Ordinance, 2001 provided exemption from total income only and it had no concern with exemption from specific provision which was covered in Part IV of the Second Schedule to Income Tax Ordinance, 2001---Reference was allowed accordingly.

The COMMISSIONER INLAND REVENUE ZONE-I, REGIONAL TAX OFFICE, QUETTA vs QUETTA ELECTRIC SUPPLY COMPANY LIMITED, QUETTA Ss — 2022 PTD 1844 QUETTA-HIGH-COURT-BALOCHISTAN

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