| Case ID |
377ad52e-9fe1-43e9-8dbe-81ba0de1eaf1 |
| Body |
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| Case Number |
I.T.A. No. 1367/KB of 2018 |
| Decision Date |
May 06, 2019 |
| Hearing Date |
Feb 28, 2019 |
| Decision |
The Appellate Tribunal remanded the matter back to the officer authorized under Section 177 of the Income Tax Ordinance, 2001. The tribunal found that the assessing officer had erred in disallowing the tax credit for the appellant, who claimed to be a non-profit organization eligible for tax benefits under Section 100C. The tribunal noted that the assessment made by the officer was not only flawed but also contrary to the provisions of law regarding tax exemptions for educational institutions run by non-profit organizations. The tribunal emphasized the need for proper investigation to determine the eligibility of the appellant for the claimed tax credit, taking into account the relevant legal provisions and previous case law. The tribunal's decision highlighted the importance of detailed inquiries and investigations in tax assessments to ensure fairness and compliance with the law. |
| Summary |
This case revolves around Ziauddin University, a non-profit educational institution, which contested the tax assessment made by the Inland Revenue authorities. The core issue was whether the university was eligible for tax credits under Section 100C of the Income Tax Ordinance, 2001. The tribunal found significant procedural errors in the assessment process, emphasizing the necessity for detailed investigations to ascertain the eligibility of the university for tax benefits. The decision underlines the legal complexities surrounding non-profit organizations and their tax obligations, particularly in light of the amendments to the Income Tax Ordinance that shifted from blanket exemptions to conditional tax credits. The tribunal's ruling serves as a critical reference for similar cases involving educational institutions and non-profit organizations, ensuring adherence to legal standards and fair tax treatment. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Commissioner Inland Revenue,
Ziauddin University
|
| Judges |
Mrs. Seema Imran, Judicial Member,
Saif Ullah Khan, Accountant Member
|
| Lawyers |
Abdul Rahim Lakhany,
Vishwa Mittar Sahitya,
Naveed Dost Chandio
|
| Petitioners |
Messrs Ziauddin University, Karachi
|
| Respondents |
The Commissioner Inland Revenue, Zone-I
|
| Citations |
2020 SLD 1511,
2020 PTD 1583
|
| Other Citations |
2018 PTD 1787,
2017 PTD 1911
|
| Laws Involved |
Income Tax Ordinance, 2001,
Income Tax Rules, 2002
|
| Sections |
2(36),
100C,
122,
177,
159,
220A
|