| Case ID |
08580aef-ef4a-4417-993c-24c6f3c30127 |
| Body |
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| Case Number |
Civil Petitions Nos. 3121 to 3125 of 2021 |
| Decision Date |
Jun 10, 2022 |
| Hearing Date |
Jun 10, 2022 |
| Decision |
The Supreme Court of Pakistan dismissed Civil Petitions Nos. 3121 to 3125 of 2021, affirming the previous judgments regarding the nature of income derived by Fauji Foundation from bank deposits. The Court held that the income from interest on bank deposits should be considered as business income rather than income from other sources. The judgment emphasized the welfare trust's objective of investing its surplus income for the benefit of its beneficiaries, thus reinforcing the principle of res judicata concerning the tax years in question. The decision highlighted the importance of consistency in tax matters and the finality of earlier tribunal findings, which were not contested by the Department. |
| Summary |
The case involves the Supreme Court of Pakistan's ruling on whether income from bank deposits for the Fauji Foundation, a welfare trust, should be classified as business income or income from other sources under the Income Tax Ordinance, 1979. The Court upheld the previous findings of the Appellate Tribunal, which stated that the Foundation's income was indeed business income used for welfare projects. This ruling is crucial for tax classification and affirms the need for consistency in tax assessments across different years. The decision serves as a precedent for similar cases involving charitable organizations and their income classification for tax purposes. Keywords: Income Tax Ordinance, business income, welfare trust, Supreme Court of Pakistan, tax law, tax classification, res judicata, charitable organizations. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
FAUJI FOUNDATION
|
| Judges |
UMAR ATA BANDIAL, C.J.,
MUHAMMAD ALI MAZHAR,
AYESHA A. MALIK, JJ
|
| Lawyers |
Ms. Shazia Bilal, Advocate Supreme Court,
Kamranullah, Additional Commissioner,
Naeem Hassan, Secretary Litigation (FBR),
Syed Ali Zafar, Advocate Supreme Court,
Zahid Nawaz Cheema, Advocate Supreme Court
|
| Petitioners |
COMMISSIONER OF INCOME TAX, COMPANIES ZONE, ISLAMABAD
|
| Respondents |
MESSRS FAUJI FOUNDATION LIMITED
|
| Citations |
2023 SLD 2100,
2023 PTD 1590,
(2024) 129 TAX 625
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
22,
30
|