2.      Income Tax Ordinance
3. Proviso- The basic requirement of law is that so long as the assesses

Proviso- The basic requirement of law is that so long as the assesses

1. Update Time : May, 4, 2018, 12:49 am
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Proviso– The basic requirement of law is that so long as the assesses is  capital for the purpose  of its business and paying interest thereon, he is entitled to get allowance of deduction for the interest paid by him. The only exception is in respects of the categories of use in favor of an entity whose income is exempted from payment of tax. In giving interpretation to a relevant provision, proviso , if any thereto, should also be interpreted. At least it should be said that the proviso is not relevant for deciding the case concerned – Commissioner of Taxes Vs Transfin Trading Ltd.  (Statutory Original), 67  DLR  (HCD)  (2015)  367 Section 29

Section  29(1)  clause  (iii) – The proviso excluded the benefit from the assessee for deduction of interest paid in respect of the three categories of uses of the borrowed capital by transferring any part of it to an entity whose income is exempted from payment of tax.Only in such uses, the assessee is not entitled to allowance of deduction of interest paid on the borrowed capital.this being the apparent meaning of the proviso to clause -(iii) of sub-section of section 29, this proviso does not have any application at all.-  Commissioner of Taxes Vs Transfin Trading Ltd.  (Statutory Original), 67  DLR  (HCD)  (2015)  367.