ORDER

These appeals have been filed by, the assessee as well as by the Department for tax years, 2003, 2004 and 2005 against combined orders of learned CIT(A), Zone-I, Islamabad passed on 17-6-2006.2. As per facts original assessments in the case of this assessee deriving income from micro finance business were made under section 120 by accepting the declared loss. These assessments were rectified and loss was assessed at Rs.8,39,65,982. Rs.30,33,886 and Rs.3,66,37,543 for tax years 2003, 2004 and 2005 respectively. Subsequently Additional Commissioner (IAC-Audit) noticed that all these assessments are erroneous insofor as being prejudicial to the interest of Revenue because:(i) for the purpose of tax rates status of banking should have been assigned in the assessments instead of public limited company as claimed by the assessee, as the assessee is engaged in banking business;(ii) interest on government securities and bank deposits earned by the assessee should have been subjected to tax bec...