| Case ID |
3d7eb883-b712-41f0-8afd-b445a22274b1 |
| Body |
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| Case Number |
T.R. No. 01-2011 |
| Decision Date |
Nov 01, 2014 |
| Hearing Date |
Nov 01, 2014 |
| Decision |
The court ruled that the Multan Educational Trust, being a society duly registered under the Societies Registration Act, 1860, falls within the definition of a 'Company' under section 80(2)(b)(v) of the Income Tax Ordinance, 2001. Thus, the society is liable to pay minimum tax as per section 113 of the Ordinance, with the exception that this minimum tax is not chargeable for the tax year 2008. The court clarified that a society is considered 'formed' when it is registered with the Registrar of Joint Stock Companies, thereby establishing its legal existence under the Act. The ruling emphasized the importance of registration in constituting a society as a corporate entity, which aligns with the statutory definitions provided in the Income Tax Ordinance. |
| Summary |
In the landmark case of T.R. No. 01-2011, the court addressed the legal status of the Multan Educational Trust under the Income Tax Ordinance, 2001. The pivotal question was whether the Trust, a society registered under the Societies Registration Act, 1860, could be classified as a 'Company' for tax purposes. The decision highlighted that societies established under legislative acts are indeed recognized as corporate entities, thus subject to minimum tax obligations. This case significantly impacts how educational trusts and similar societies are treated under tax law, emphasizing the necessity of formal registration to achieve corporate status. Legal practitioners and stakeholders in the education sector must be aware of this precedent as it sets a critical standard for tax liabilities of registered societies. The ruling clarifies the interpretation of 'formation' and 'establishment' under tax law, ensuring compliance among similar entities. Keywords: Income Tax Ordinance, corporate entities, tax obligations, legal status, educational trusts. |
| Court |
Commissioner Inland Revenue
|
| Entities Involved |
MULTAN EDUCATIONAL TRUST
|
| Judges |
Syed Mansoor Ali Shah,
Mamoon Rashid Sheikh
|
| Lawyers |
Not available
|
| Petitioners |
COMMISSIONER INLAND REVENUE
|
| Respondents |
MULTAN EDUCATIONAL TRUST
|
| Citations |
2014 SLD 1596,
(2014) 109 TAX 7,
2014 PTCL 16
|
| Other Citations |
(1998) 78 Tax 71,
Dr. Idramani Pyarelal Gupta and others v. W.R. Natu and others (AIR 1963 SC 274),
Commissioner of Income Tax/Wealth Tax Companies Zone-II, Lahore v. M/s. Lahore Cantt. Cooperative Housing Society, Lahore and 7 others (PTCL 2010 89)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
80(2)(b)(v),
113
|