Law: Income Tax Ordinance, 2001

Section: 53,150,151,159,Second Schedule,Part-IV,clause,47B

THIS JUDGMENT DELIVERED BY: AAMER FAROOQ, JUSTICE---.--- This judgment shall decide the instant petition as well as the petitions mentioned in the schedule appended at pages Nos. 11 and 12, as common questions of law and facts are involved. 2. The petitioners, in all the petitions, are approved Gratuity/ Provident Funds under the Income Tax Ordinance, 1979/ Income Tax Ordinance, 2001 by the competent authority. The income of the petitioners is exempted from tax under clause 57(3) of Part 1 of Schedule 2 to the Income Tax Ordinance, 2001 (the Ordinance). The petitioners also claim exemption from deduction of advance tax under clause 47B of Part 2 of schedule 2 to the Ordinance. They are aggrieved of Letter/Circular dated 12.5.2015, whereby clause 47B ibid has been interpreted and a direction was made to the Commissioners Inland Revenue to apply Section 159 of the Ordinance. Based on the above circular/directions, the Banks with whom the petitioners are maintaining accounts have required the petitioners to provide the exemption certificate, in case they wish that no advance tax be deducted from the profits that are paid on the funds maintained with them. 3. The learned counsel for the petitioner in the instant petition, inter alia, contended that exemptions and concessions admissible under the Ordinance are provided in Second Schedule to the Ordinance. In this behalf, it was contended that under section 53(1)(a), exemption is provided from tax under the Ordinance; section 53(1)(b) provides concession in the rates of tax payable under the Ordinance; section 53(1)(c) allows reduction in the tax liability and under section 53(1)(d) exemption is provided from the operation of any provision of the Ordinance. It was further contended that under Part IV of Schedule II certificates of exemption from payment of tax have been issued, therefore, the petitioner is not liable to pay any tax vis-a-vis the income derived from the fund. It was further contended that clause 47B in Part II of Second Schedule to the Ordinance makes certain provisions of the Ordinance including section 151 not applicable in case of the petitioners, hence they are not liable to deduction of advance…

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