Income From Business Chapter- 09
(ii) Non-adjustable rent
(iii) Speculation business
Q.NO. 2 (a) Autumn 2007 What do you understand by the concept “apportionment of expenditures” as
explained in the Income Tax Ordinance, 2001?
Q.NO. 3 (a) Spring 2006 Explain with reasons, as to whether or not the following expenses are admissible
business expenditures:
(i) Penalty paid by a banking company on contravention of State Bank of Pakistan’s regulations.
(ii) Freight charges to forwarding agent amounting to Rs 60,000 paid in cash.
(iii) Payment of salary to employee from which tax was not deducted by the employer. However, the
employee paid the tax himself.
(iv) Tax deducted u/s 153 from payments received by a resident person on account of services rendered.
Q. NO. 3 (b) Autumn 2006 One of your clients, Japan and Company, a partnership having three partners,
has sent you its financial statements for the year ended June 30, 2006. Following items are appearing
under the head ‘Other income’:
(i) Accounting profit on disposal of fixed assets.
(ii) Reversal of provision for doubtful debts related to year ended 30- 06 - 2004
(iii) Dividend received from a listed company.
(iv) Profit on debt.
You are required to explain with reasons as to how the above items will be treated in the computation of
taxable income.
Q.NO. 3 (c) Spring 2006 Explain the provisions of section 29 with regard to the recovery of bad debts in
subsequent years.
Q.NO. 4 (b) Autumn 2006 Describe conditions mentioned in ITO, 2001 under which a loan will be
classified as a ‘consumer loan’.
Q.NO. 5 (a) Autumn 2006 Any income arising from any asset transferred by a person to his spouse is to be
treated as income of the transferor. Describe the circumstances under which this rule shall not be
applicable.
Q.NO. 3 Spring 2005 Describe any five types of expenses that are not allowed to deducted under the head
“income from business”.
Q.NO. 7 Spring 2005 Discuss under what circumstances an expenditure incurred by a person are required
to be apportioned for the purpose of claiming a deduction under the Income Tax Ordinance, 2001?
Q.NO. 4 Autumn 2004 Describe the expenses which are allowable as a deduction on account of
employees training & facilities?
Q.NO 5 Autumn 2004 Discuss the conditions required to be fulfilled for claiming a deduction on account of
‘bad-debts’?
Q.5 Spring 2002 Explain whether the following are admissible as business expenditure under the Income
Tax Ordinance 1979:
(a) Repayment of principal amount of lease rentals of plant & machinery.
(b) Sales tax paid on the purchase of raw material to be used in the production of exempt supply.
(c) Dividend
(d) Provision in respect of doubtful debts.