Law: Income Tax Ordinance, 2001

Section: 18(1)(a),122(5A),113,153(1)(c),169,Secon dSched.,Part-1,Cl-126F,206

(a) Income Tax Ordinance (XLIX of 2001)-------Ss. 122(5A), 113, 153(1)(c), 169 & Second Sched., Part-1, Cl-126F---FBR letter C.No.4(1)ITP/2010-113914 dated 19-8-2010---FBR letter C.No.4(4)ITP/2012 dated 19-8-2010---FBR letter C.No.4(4)ITP/2009 dated 6-10-2011---FBR Circular No. 14 of 2011 dated 6-10-2011---FBR Circular C.No.4(4)ITP/2010 dated 7-6-2013---Amendment of assessment---Contractual receipts---Claim of exemption from Final Tax Regime and Minimum tax---Taxation Officer taxed contractual receipt after disallowing claim of exemption on the ground that taxpayer wrongly claimed exemption from tax under Cl.(126F) of Part-1 of the Second Schedule of the Income Tax Ordinance, 2001 on its contractual receipts which were otherwise chargeable to tax under S.153(1)(c) of the Income Tax Ordinance, 2001 read with S.169 of the Income Tax Ordinance, 2001---Validity---Total income of a person comprised of income under all heads including income from business under S.18(1)(a) of the Income Tax Ordinance, 2001 which clearly mentioned the term "profits and gains" and this term had been used in Cl.(126F) of the Second Schedule of the Income Tax Ordinance, 2001 which granted exemption to profits and gains and not to the income covered under S.169 of the Income Tax Ordinance, 2001---Section 169(2) of the Income Tax Ordinance, 2001, in turn, excluded all the incomes which were chargeable under any head of income meaning thereby that income subjected to final taxation did not fall within the scope of business income and profits and gains, hence, not exempt under Cl.(126F) of the Second Schedule of the Income Tax Ordinance, 2001---Only those profit and gains which were taxable within the meaning of S.18(1)(a) of the Income Tax Ordinance, 2001 had been given exemption in Cl.(126F) of the Second Schedule of the Income Tax Ordinance, 2001 whereas the case of the taxpayer fell under S.169(2)(a) of the Income Tax Ordinance, 2001 which states that "the income shall not be chargeable to tax under any head of income in computing the taxable income of the person"---Case of the taxpayer did not fall under S.18 of the Income Tax Ordinance, 2001 rather it fell under separate block of…