(2) If, on an application made under sub-section (1), the Appellate Tribunal refuses to state the case on the ground that no question of law arises, the assessee or the Commissioner, as the case may be, may within one hundred and twenty days from the date on which he is served with notice of the refusal, apply to the High Court and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, frame a question of law and the provisions of sub-sections (5), (6), (7) and (8) shall, so far as may be, apply as they apply to a reference made under sub-section (1).

(3)    If on any application made under sub-section (1), the Appellate Tribunal rejects it on the ground that it is time-barred, the assessee or the Commissioner, as the case may be, may, within three months from the date on which he is served with notice of the rejection, apply to the High Court, and the High Court, if it is not satisfied of the correctness of the Appellate Tribunal's decision, may require the Appellate Tribunal to treat the application as made within the time allowed under sub-section (1).

(4)    If the High Court is not satisfied that the statement in a case referred under sub-section (1) is sufficient to enable it to determine the question raised thereby, the Court may refer the case back to the Appellate Tribunal to make such modification therein as the Court may direct.

(5) When any case has been referred to the High Court under this section, it shall be heard by a Bench of not less than two Judges of the High Court, and in respect of such case the provisions of section 98 of the Code of Civil Procedure, 1908 (V of 1908), shall, so far as may be, apply notwithstanding anything contained in the Letters Patent applicable to any High Court or in any other law for the time being in force.

(6) The High Court upon the hearing of any such case, shall decide the questions of law raised thereby and shall deliver its judgement thereon containing the grounds on which such decision is founded and shall send a copy of such judgement under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case conformably to such judgement.

(7) Where a reference is made to the High Court under this section, the costs shall be in the discretion of the Court.

(8) Notwithstanding that a reference has been made under this section to the High Court, tax shall, unless the recovery thereof has been stayed by the High Court, be payable in accordance with the assessment made in the case.

(9) Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an application  under  sub-section (1) or sub-section (2).

(10) When an application is made under sub-section (1) by  the assessee, it shall be accompanied by a fee of one hundred rupees.";

(25)  in section 137, in sub-section (1), for the words "an appeal filed" the words and comma "a reference made, or any question of law framed," shall be substituted;

(26) in section 138, in sub-section (5), in clauses (c) and (e) for the words "Central Board of Revenue" the words "Regional Commissioner" shall be substituted;

(27) in section 138C, in sub-section (2A), for the full stop, at the end, colon shall be substituted and thereafter the following proviso shall be added, namely:-

"Provided that this Commission shall not perform its functions referred to in clause (c) after the 30th day of June, 2000.";

(28) in section 138D, after sub-section (3), the following new sub-section shall be added, namely:- "(4)      No application under this section shall be made after the 30th day of June, 2000."; and

(29) section 138EE shall be omitted;

(30)  in the First Schedule,- (i) in Part-I,- (a)    in paragraph A, in the proviso, in clause (a), sub-clause (ii) shall be omitted;

(b)  paragraph AA shall be omitted;

(c) in paragraph CCC, in sub-paragraph (i), in clause (d), for full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-

"Provided that for the assessment year commencing on or after the first day of July, 2001, the rate of tax shall be six per cent of the value of goods imported.";

(d) in paragraph CCCC,- (i)  the existing paragraph shall be re-numbered as sub-paragraph (a); and

(ii) after sub-paragraph (a), re-numbered as aforesaid, the following new sub-paragraph shall be added, namely:- "(b)  for the assessment year commencing on or after the first day of July, 2001, the rates shall be as under:- (i)   Part-I of Eighth    0.75% of such income Schedule.

(ii)  Part-II of Eighth 1.0% of such income Schedule

(iii) Part-III of Eighth 1.25% of such income Schedule

(e) after paragraph CCCC, the following new paragraph CCCCA shall be inserted, namely:-

"CCCCA. In the case of every person to whom section 80CD applies and the income pertains to exports covered under: (i)  Part-I of Eighth 0.75% of Schedule such income

(ii) Part-II of Eighth 1% of Schedule such  income

(iii) Part-III of Eighth 1.25% of Schedule such  income.”;

(f) in paragraph F, for the word "Five" the word "Six" shall be substituted;

(g) for paragraph FF, the following shall be substituted namely:-

"FF. Rate of collection of income tax under sub-sections (5A), (5AA) and (5AAB) of section 50 apply, excluding income to which paragraph FFA applies:

Where the income pertains to supply of goods to an exporter under a back to back inland letter of credit and from exports covered under: Rates

(i)  Part-I of Eighth 0.75% of Schedule such income

(ii) Part-II of Eighth 1% of Schedule such income

(iii) Part-III of Eighth 1.25% of Schedule such income.”;

(h) paragraph HHH shall be omitted;

(ii) in Part-III, after paragraph B, the following new paragraph shall be added, namely:-

"C. In respect of the income year relevant to the assessment year commencing on or after the first day of July, 2000, a company, not being a banking company, shall pay surcharge equal to five per cent of the amount of income tax payable excluding the amount of presumptive income tax payable under section 80C or 80CC.”;

(31) in the Second Schedule,- (i) in Part-I,-

(a) in clause (86B),- (i) for the words "approved by the Central Board of Revenue" the words and comma "recognized by a Board of Education or a University or the University Grant Commission, as the case may be" shall be substituted;

(ii)  for the figure "2000"  the figure "2005" shall be substituted; and

(iii) for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely,-

"Provided that a computer training institution or computer training scheme approved by the Central Board of Revenue before the first day of July, 2000, shall continue to avail exemption under this clause till the expiry of the specified period.";

(b) in clause (108), for the figure "2000" the figure "2001" shall be substituted;

(c) in clause (117A), after the figures "1999", the words and figures, "and between the first day of July, 2000 and the 30th day of June, 2001", shall be added; and

(d) clauses (154A), (155A) and (178) shall be omitted;

(ii) in Part-II,- (a) in clause (6AA),- (i) for the word "two" the word "three" shall be substituted; and

(ii) the words and comma "as raw material by an industrial undertaking exclusively for its own use," appearing after the word “imported” shall be omitted.

(b) clauses (14) and (15) shall be omitted;

(iii) in Part-III,- (a) for the brackets, letter and figure "(A1)" the brackets, figure and letter "(1A)" shall be substituted; and

(b) after clause (1A), the following new clause shall be added, namely:-

"(1B) Reduction in tax in the cases of salaried tax payers.- (1) The income tax liability on income of salaried tax payers, where any income chargeable under the head “salary” exceeds 50% of total income as determined under paragraph A of Part-I of the First Schedule, shall be reduced at the following rates:-

(2) in addition to the reduction specified in sub-clause (1), the tax payable by a  full time teacher or a researcher, employed in a non profit education or research  institution duly recognised by a Board of Education or a University or the University Grants Commission, shall be further reduced by an amount equal to 50% of the tax payable after the aforesaid reduction.

(3) The reduction  in tax liability in sub-clauses (1) and (2) shall be applicable for the purposes of tax withholding under sub-section (1) of section 50 from the first day of July, 2000 and for the purposes of assessment from assessment year 2001-2002.";

(iv) in Part-IV,- (a)  in clause (9B), in the third proviso, for the word "four" the word "six" shall be substituted;

(b) clauses (7), (17A) and (24) shall be omitted;

(c) after clause (17), the following new clauses shall be inserted, namely:-

"(17B) The provisions of sub-section (5) of section 50 shall not apply to such specially equipped motor vehicle or support equipment imported by a disabled person, as is allowed by the Federal Government.

(17C) The provision of sub-section (5) of section 50 shall not apply in case of such goods imported into Pakistan as are exempt from customs duty and sales tax under SROs 360(I)/2000, 362(I)/2000 and 363(I)/2000 dated 17.6.2000.”;

(d) after clause (32A), the following new clauses shall be added, namely:-

"(32B) The provisions of section 80D shall not apply to a charitable institution which is approved under clause (d) of sub-section (1) of section 47 or clause (62) or is included in clause (62) or  clause (91) of Part-I of the Second Schedule to this Ordinance.

(32C) The provisions of section 80D shall not apply to an assessee who qualifies for exemption under clause (179) of Part-I of the Second Schedule to this Ordinance.";

(32) in the Third Schedule, in rule 5A, in the table, entry F shall be omitted; and

(33) in the Eighth Schedule,- (a) for the first paragraph the following shall be substituted, namely:-

"The rate of tax payable under sub-section (5A) of section 50, in respect of income of a person (being a resident), from export of goods shall be --

Where the income pertains The rate to exports  covered under:

(a) Part I.  0.75% of such income or the rate as prescribed by the Central Board of Revenue.

(b) Part II  1.0% of such income or the rate as prescribed by the Central Board of Revenue.

(c) Part III  1.25% of such income or the rate as prescribed by the Central Board of Revenue."; and

(b) in the table, in Part-III, in entry No. 2 the word "produced" shall be substituted by word "produced or manufactured", and  after entry No. (v), the following shall be added;