ORDER

This appeal has been filed by the Department against the order of learned CIT(A), Zone-III, Karachi, under section 122 of the Income Tax Ordinance, 2001. The following grounds have been raised as under:--"(1) The CIT(A) has passed order without application of her conscious judicial mind and evaluating the stance taken by the Department and is devoid of reason 2005 PTD 165.(2) The grounds of disallowances of Sales Tax paid for the previous year assessment year 2002-2003. Tax year 2003 is based on the principles that the assessee liable to pay sales tax deliberately did not pay the same in the relevant year, i.e. Tax year, 2004, so it cannot be claimed as an expense in the subsequent years.The amount of Sales Tax has to be related back to the past years and not to the Year when the payment was actually made (1973) PTD 442 (Lah.).The CIT(A) is totally misguided in this context and has created a biased situation not sustainable under law.(3) The relevance of quoted case-law refers to the p...