Legal Case Summary

Case Details
Case ID 162f5b9a-41c5-4626-8c1f-dadd55a68b49
Body View case body.
Case Number I.T.As. Nos. 4316/LB to 4319/LB, 5957/LB, 5958/LB
Decision Date Jul 19, 2005
Hearing Date
Decision The Income Tax Appellate Tribunal delivered a decision regarding the assessment of the Punjab and Sindh Employees Social Security Institutions. It was determined that the assessments made under section 65 of the Income Tax Ordinance, 1979 were not maintainable as no previous assessments had been framed. The Tribunal emphasized the necessity of issuing a notice under section 56 to initiate assessment proceedings when no assessments had been framed. The decision also highlighted the distinction between statutory contributions and taxable income, asserting that statutory contributions made by employers to the Employees Social Security Fund do not constitute taxable income under the Ordinance. The Tribunal's findings reinforced the legal principles governing the taxability of income for institutions operating under government mandates.
Summary This case revolves around the taxability of income for provincial Employees Social Security Institutions under the Income Tax Ordinance, 1979. The Income Tax Appellate Tribunal addressed the assessments made for the years 1996-2001 and the arguments presented by the representatives of the Punjab and Sindh Employees Social Security Institutions. The Tribunal concluded that statutory contributions received from employers are not taxable income, emphasizing that such contributions are not considered income under the definition provided in the Ordinance. The case references significant legal precedents and highlights the need for proper jurisdiction in tax assessment. Key keywords include 'Income Tax Ordinance', 'taxability', 'statutory contributions', 'Employees Social Security', and 'legal precedents'. These terms are trending in legal discussions surrounding tax law and public welfare institutions, making this case relevant for ongoing debates in tax policy and compliance.
Court Income Tax Appellate Tribunal
Entities Involved Sindh Employees Social Security Institution, Punjab Employees Social Security Institution
Judges Khawaja Farooq Saeed, Khalid Waheed Ahmed, Shaheen Iqbal
Lawyers Haroon Mirza, Rana Hammad Aslam, Zia Haider Rizvi, Muhammad Ali Shah, Shahid Jamil Khan, Jawaid Farooqi, Khalid Majid, Kaleem Ashraf, Sardar Rahat Azeem
Petitioners Not available
Respondents Not available
Citations 2007 SLD 27 = 2007 PTD 676 = (2006) 94 TAX 202
Other Citations 2001 PTD 1998, Chairman District Council Rahim Yar Khan v. U.B.L. Rahim Yar Khan 1989 CLC 1397, Writ Petition No.10227 of 2002; Sessi v. Pakistan National Produce Co. Ltd. 1989 PLC 8, (1993) 67 Tax 400, Adamjuee Cotton Mills, Karachi v. SESSI 1974 PLC 213, Pattoki Sugar Mills and others dated 1-10-2001 in C.As. Nos.1558 to 1574 of 2000, 1995 PTD 431, (2001) 83 Tax 2001 PTD 1998, 1995 PTD 1100 (Trib.), 1990 PTD 389 (Trib), 1990 PTD 889, C.B.R. v. SITE Ltd. 53 Tax 47, 1983 PTD 1390 (S.C. India), 37 Tax 211 (S.C. India)
Laws Involved Income Tax Ordinance, 1979, Constitution of Pakistan, 1973
Sections 62, 65, 56, 2, 9, 15, 165, 2(16)(b), 2(24), 11, 2(14), 165A, Second Schedule, Cl. 56, Second Schedule, Cl. 93, Second Schedule, Cl. 94