| Case ID |
03672a99-5c0e-4d23-9e43-23ba8059babd |
| Body |
View case body. Login to View |
| Case Number |
|
| Decision Date |
Nov 10, 2011 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal ruled that the Workers Welfare Fund (WWF) is chargeable from the taxpayer, Messrs T.F. Pipes (PVT.) LTD. The taxpayer's argument that they were entitled to exemption from the WWF due to their parent companies, Pakistan Telecommunication Company Limited and Telecom Foundation, not being liable was rejected. The tribunal found that the taxpayer is an independent entity engaged in manufacturing and therefore falls within the definition of 'industrial establishment' under the law. The decision of the First Appellate Authority was vacated, and the orders passed by the Officer Inland Revenue were restored. |
| Summary |
The case revolves around the applicability of the Workers Welfare Fund Ordinance to a manufacturer of pipes, specifically Messrs T.F. Pipes (PVT.) LTD. The taxpayer argued that since their parent companies were not liable to the WWF, they too should be exempt. However, the tribunal clarified that the taxpayer is a separate entity and falls under the definition of an industrial establishment. This ruling emphasizes the independence of taxpayer entities in relation to their parent companies, especially in tax matters. The tribunal's decision underscores the importance of understanding corporate structures in tax liability cases, particularly regarding the WWF. The ruling is significant for businesses involved in manufacturing and their responsibilities under tax laws. The case highlights the legal interpretation of industrial establishments and the obligations that arise from manufacturing activities. The decision also serves as a precedent for similar cases where parent company relationships are used to argue for tax exemptions. This case is vital for legal practitioners and businesses alike, as it delineates the boundaries of tax liabilities for corporate entities. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Pakistan Telecommunication Company Limited,
Telecom Foundation,
Messrs T.F. PIPES (PVT.) LTD.
|
| Judges |
MUNSIF KHAN MINHAS,
IKRAM ULLAH GHAURI
|
| Lawyers |
Tahir Khan D.R.,
Altaf Muhamad Khan
|
| Petitioners |
C.I.R., Legal Division, Regional Tax Office, Islamabad
|
| Respondents |
Messrs T.F. PIPES (PVT.) LTD., ISLAMABAD
|
| Citations |
2012 SLD 43,
2012 PTD 577,
2012 PTCL 542,
(2012) 105 TAX 409
|
| Other Citations |
Not available
|
| Laws Involved |
Workers Welfare Fund Ordinance, 1971,
Charitable Endowment Act, 1890
|
| Sections |
4
|