ORDER

The Order was passed by Khawaja Farooq Saeed, Judicial Member.- The assesses a Public Limited Company is engaged in the business of power generation through its unit located at Faisalabad. His income is exempt under clause 176 of the Second Schedule of the Income Tax Ordinance 1979. However, the department found that the assessee imported power-generating machinery for a consideration of Rs. 150.995 (millions) for installation in his factory. The said machinery later was sold to National Development Leasing Company and M/s. Orix Leasing Company, Faisalabad and was leased back to the petitioner. This transaction was considered as a supply by the department and the assessee was asked to file statement u/s 143-B of the Income Tax ordinance, 1979. The assessee challenged the treatment however, the assessing officer considered the transaction as supply chargeable to tax u/s 50 (4) and consequently assessable u/s 80C. The assessment in this case was finalized on 30-05-1996 while the order wa...