| Case ID |
36db2cf1-a720-4511-865b-ea06e9239986 |
| Body |
View case body. Login to View |
| Case Number |
W.T.A. Nos. 704/KB and 705/KB of 1986-87 |
| Decision Date |
Apr 30, 1992 |
| Hearing Date |
Jan 22, 1992 |
| Decision |
The decision of the Income Tax Appellate Tribunal concluded that the cooperative society, which had acquired land for the benefit of its members, was not liable to wealth tax. The tribunal emphasized that a cooperative society is a juristic person and can only be subjected to wealth tax if it holds assets for the purpose of letting out or conducting business. The tribunal found that the society's solitary transaction of selling land did not indicate a business intention. The wealth tax officer's assessment was based on conjectures rather than established facts, leading to the cancellation of the assessments for the years in question. |
| Summary |
This case revolves around the assessment of wealth tax on a cooperative housing society. The Income Tax Appellate Tribunal analyzed whether the society was liable for wealth tax based on its activities and intentions regarding land acquisition and sales. The tribunal highlighted the legal standing of cooperative societies as distinct entities and the necessity of proving that assets were held for business purposes to impose wealth tax. The judgment reinforces the doctrine of mutuality in cooperative societies, asserting that mere intentions or isolated transactions do not suffice for wealth tax liability. This ruling is crucial for understanding cooperative society operations under tax laws, particularly in the context of land transactions and wealth tax implications. Key terms include 'wealth tax', 'cooperative society', 'juristic person', and 'doctrine of mutuality', which are essential for legal professionals and entities involved in cooperative housing. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Syed Kabirul Hasan, Judicial Member,
Manzur ul Haque, Accountant Member
|
| Lawyers |
Mahmood A. Hashmi, Advocate,
Nawal Raj N. Oad, D.R.
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1992 SLD 446,
(1992) 66 TAX 44,
1992 PTD 1187
|
| Other Citations |
Not available
|
| Laws Involved |
Cooperative Societies Act, 1925,
Income Tax Act, 1922,
Income Tax Ordinance, 1979,
Wealth Tax Act, (XV of 1963)
|
| Sections |
23,
36,
44,
2(II),
2(26),
2(e)(ii),
3,
7,
17,
16(2)
|