Law: Income Tax Ordinance, 2001

Section: 21,21(c),134,153,122

(a) Income Tax Ordinance (XLIX of 2001)---Ss. 21(c), 134 & 153---Failure to deduct withholding tax in respect of "gas bill collection charges"---Assessee company allegedly having failed to deduct withholding tax under S.153 of Income Tax Ordinance, 2001 in respect of 'gas bill collection charges' incurred in connection with services rendered by various institutions/banks in collecting the gas bills, Additional Commissioner, invoked provisions of S.21(c) of the Ordinance to disallow such collection charges---Validity---Representative of the company informed that similar disallowances were made in respect of tax years 2003 through 2006 in the appellant company's own case, but the Appellate Tribunal after analyzing the matter from various aspects, found that company was not obliged to withhold tax in respect of collection charges and annulled the disallowances made in the preceding years---No difference existed in facts and circumstances, as were prevailing in the preceding years as were invoked in the current year---Held, since the matter had already been decided in company's favour, disallowance on that account was deleted by following the already available decision of appellate Tribunal on the matter in question. (b) Income Tax Ordinance (XLIX of 2001)--- ----Ss. 21(e) & 122(5-A)---Expenses on account of post retirement employee benefit---Amendment of assessment---Assessee company in its financial statements charged expenses regarding post retirement employee benefit relating to medical facility and free provision of gas---Additional Commissioner, in the amended order, disallowed both the amounts by invoking the provisions of S.21(e) of Income Tax Ordinance, 2001, holding that the accumulation of provisions under said heads tantamounted to creation of a 'fund' which not being an approved fund, attracted the mischief of said provisions of law---Reliance was placed by the Additional Commissioner on decision of Sindh High Court in case 2006 PTD 460, wherein there was issue of determination of allowability of 'provision for gratuity'---Reference to principle of 'stare decisis' being already well settled, same could not be ignored and later decision (2008…

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