| Case ID |
381b5029-11dd-40ef-a72b-01d03d05bb67 |
| Body |
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| Case Number |
I.T.As. Nos.6, 8, 10 and 14 of 1999 |
| Decision Date |
Apr 12, 2000 |
| Hearing Date |
Apr 12, 2000 |
| Decision |
The court ruled that all incomes, including exempt income, are assessable under the Income Tax Ordinance, 1979, even if they may not be taxable. The case centered around the interpretation of 'assessable' versus 'taxable' income, emphasizing that the claimant of an exemption must substantiate their claim without ambiguity. The court determined that the Workers Welfare Fund is applicable even if an establishment enjoys exemptions under the Income Tax Ordinance. The decision reaffirmed that the exemptions under the Income Tax Ordinance do not extend to the Workers Welfare Fund, thus maintaining the legal obligation to pay the fund based on assessable income, irrespective of any tax liability. |
| Summary |
In the case of I.T.As. Nos. 6, 8, 10 and 14 of 1999 decided by the Lahore High Court, the court examined the applicability of the Workers Welfare Fund Ordinance on industrial establishments that claim exemptions under the Income Tax Ordinance, 1979. The court emphasized that exempt income is still considered assessable income, and the obligation to pay the Workers Welfare Fund remains intact regardless of any tax exemptions granted under the Income Tax Ordinance. The ruling clarified the distinction between assessable and taxable income, reinforcing that all income above a certain threshold is assessable, even if it is exempt from income tax. This case highlights the nuanced interplay between different tax legislations in Pakistan, particularly regarding the obligations of industrial establishments under the law. The judgment serves as a critical reference for future cases involving tax exemptions and obligations, ensuring compliance with fiscal responsibilities while protecting workers' welfare rights. |
| Court |
Lahore High Court
|
| Entities Involved |
ALLAH YAR COTTON GINNING & PRESSING MILLS (PVT.) LIMITED,
COMMISSIONER OF Income tax/WEALTH TAX, MULTAN ZONE, MULTAN
|
| Judges |
NASIM SIKANDAR,
MUHAMMAD AKHTAR SHABBIR
|
| Lawyers |
Ch. Saghir Ahmad, Standing Counsel for Appellant,
Nafeers Ahmad Ansari for Respondent
|
| Petitioners |
COMMISSIONER OF Income tax/WEALTH TAX, MULTAN ZONE, MULTAN
|
| Respondents |
ALLAH YAR COTTON GINNING & PRESSING MILLS (PVT.) LIMITED, MULTAN ROAD, VEHARI
|
| Citations |
2000 SLD 408,
2000 PTD 2958,
(2000) 82 TAX 433
|
| Other Citations |
Army Welfare Sugar Mills Ltd. v. Federation of Pakistan 1992 SCMR 1652,
I.T.A. No. 1963 of 1987-88
|
| Laws Involved |
Income Tax Ordinance, 1979,
Workers Welfare Fund Ordinance, 1971
|
| Sections |
14,
48,
Second Schedule, Clause 118A,
118D,
4,
3
|