Law: Income Tax Ordinance, 2001

Section: 122(5)

Law: Income Tax Ordinance, 1979

Section: 59(1),61,62

FINDINGS/DECISION The complainant Justice Law College Jhangi, Abbottabad is a registered trust under the name and style of Justice Raza Islamic Trust Pakistan, registered with the University of Peshawar on 23-05-95. Following submissions were made by the complainant:- a) The trust was exempt from the levy of Income Tax for a period of five years. As such the exemption was allowable to the Trust upto assessment year 2000-2001. b) For the assessment year 2001-2002 return of income was filed under Self-Assessment Scheme in view of CBR Circular No.4 of 2001 dated 18-06-2001. c) The return was not selected for total audit. However, the DCIT of Income Tax and Wealth Tax Circle-16, Abbottabad has issued illegal notice u/s 61 & 62. d) No assessment order was issued by the DCIT which is clear violations of the instructions of CBR contained in Para 9(b) of Circular No.4 of 2001. e) That instead of issuing assessment order for the year 2001-2002 under SAS, the DCIT Circle-16 issued notice u/s 122 of the Income Tax Ordinance, 2001 dated 19-4-2003. f) In the return filed for the assessment year 2001-2002 under Self-Assessment Scheme, income of Justice Raza Islamic Trust Pakistan Abbottabad was declared which included income of Justice Law College and JRK Hazara College of Education Abbottabad. All the relevant details of income and expenditure of the Trust were given. g) Lastly the notices issued are illegal and incorrect stating different dates of expiry of exemptions in the same notice. 2. It is pleaded that, the concerned DCIT may be directed to withdraw the show cause notice u/s 122 referred to above and the return may be accepted under Self-Assessment Scheme. 3. In reply, the respondents submitted that the profits and gains derived by educational institutions set up between 1st day of July 1991 and 30th June 1995 were exempted from tax for a period of 5 years beginning from the month in which the institution was set up. The period of exemption in the instant case expired on 30-05-2000. Again pleaded that it was a 23-05-2000. Thus the income for the month of June 2000 became liable to tax. It is submitted that the complainant filed return declaring net income of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492