Law: Income Tax Ordinance, 2001

Section: 4(1),221

Law: Workers Welfare Fund Ordinance, 1971

Section: 2(f),4(1)

ORDER MUHAMMAD WASEEM CHAUDHRY, JUDICIAL MEMBER:- This appeal has been filed by the taxpayer against the order No. 56/2015 dated 04-09-2015 passed by the Commissioner Inland Revenue (Appeals 1) Islamabad on the only issue of WWF. 2. The taxpayer is an individual who provides facilitations and consulting services to the principal firm. The taxpayer e-filed its return on 12-02-2015. During the course of examination of return, it was noticed that the taxpayer did not pay WWF under section 4(1) of Income Tax Ordinance 2001 for which rectification under section 221 of the said Ordinance was considered necessary. The taxpayer was, therefore, issued a show cause notice and rejecting its reply, WWF amounting to Rs. 252,924 was charged, which is subject of present appeal. 3. The AR contended that for the tax year 2014, the assessing officer followed the definition of 'industrial establishments' as defined in section 2(f) of Workers Welfare Fund Ordinance, 1971, on the taxpayer as was done for the tax year 2012. Further, Subsection (iva) of Section 2 Ibid that defines any 'establishment' to which the West Pakistan Shops and Establishment Ordinance, 1969 (W.P. Ordinance No. VIII of 1969) was also imposed on the taxpayer for the tax year under consideration as it was done in the tax year 2012. Fact of the matter is that the taxpayer is not engaged in any of the activities stated in these provisions of law to make it liable to pay WWF. In appeal the learned Commissioner Inland Revenue (Appeal 1), Islamabad accepted this position of the taxpayer for the tax year 2012, and deleted WWF amounting to Rs. 371,917 vide appellate order No. Order No. 587/2014 dated 15 September, 2014. The department did not contest the matter in second appeal 4. The AR further pointed out that in the light of appellate order for the tax year 2012, the assessing officer was not justified to charge of WWF for tax year 2014 on the same grounds and that in appeal it deserved deletion by the learned Commissioner Inland Revenue (Appeals 1) in line with his earlier order for tax year 2012. Instead, the case has been remanded back for reconsideration in the light of the latest orders of superior judiciary…

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