STATEMENT OF THE CAS

The reference application filed by the assessee speaks as follows:--"Applicant Chashma Sugar Mills Ltd. is a Public Limited Company quoted on stock exchanges in Pakistan. The industrial undertaking of the company is situated at D.I. Khan and enjoys exemption from income tax for a period of 8 years under Clause 118C of Part-I, of the Second Schedule to the Income Tax Ordinance, 1979 (the Ordinance). Assessments for assessment years 1998-99 and 1999-2000 were finalized accepting the declared results of loss of Rs.8,845,625 for the former and profit of Rs.211,651 for the latter year from the industrial undertaking. The assessments were made vide combined order under section 62 of the Ordinance by the Deputy Commissioner of Income Tax, Companies Circle 08, Peshawar on 9th February, 2001 allowing exemption from tax under Clause (118C) of Part-I, of Second Schedule to the Ordinance as, according to the Department, 6th and 7th years of exemption. It is pertinent to note that whereas the loss ...