Law: Income Tax Ordinance, 2001

Section: 120,120(1)(b),122(5)

Worker's Welfare Fund Ordinance (XXXVI of 1979)---S.4---Income Tax Ordinance (XLIX of 2001), Ss. 120(1)(b) & 122(5)---Amendment of deeming assessment on point of levy of Workers' Welfare Fund---Scope---Passing of separate speaking order under S.4 of Workers' Welfare Fund Ordinance, 1979 after proper confrontation to taxpayer would be necessary for levy of such fund---Principles. 2007 PTD 163 ref. ORDER MUNSIF KHAN MINHAS (JUDICIAL MEMBER).---The department has filed instant appeal against the order dated 29-11-2011 passed by learned CIR(A) Multan for the tax year 2009 on the following ground:-- "That the learned CIR(A) was not justified to delete WWF and to hold that charge of Worker's Welfare Fund without passing order in writing under section 4(4) of Worker's Welfare Fund Ordinance, 1971 is not maintainable, when refund order under section 170 of the Income Tax Ordinance, 2001 was passed. 2. Brief facts leading to this appeal are that, taxpayer being a Private Limited Company is deriving income from Cotton Ginning and Oil Extraction Plant. Return for the tax year under consideration was filed on FBR portal on 31-12-2010 declaring loss at (Rs.57,379,595). After adjusting minimum tax under section 113 at Rs.760,948, balance refund of Rs.11,899,511 was claimed. While processing the refund claim, the Officer concerned, calculated admitted tax liability under section 113 as before and refund of Rs.11,899,511 was issued. On examination of the assessment record, it was transpired that while calculating minimum tax liability under section 113 on the turn over declared which includes PTR and non PTR categories, total turnover was considered for calculation of the same. In the light of latest amendment inserted through Finance Act, 2010, minimum tax is to be calculated on the turnover excluding the turnover subjected to PTR. The AR of the taxpayer company has agitated the treatment of addition of revenue receipts of Rs.3,669,088 instead of Rs.1,670,933 as the profit on fixed assets amounting to Rs.1,998,155 is not revenue receipt for the purposes of section 113 of the Income Tax Ordinance, 2001. The contention of the taxpayer to this extent was accepted by the…

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