Law: Income Tax Ordinance, 2001

Section: 65D,159(1)

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001) Sections: 65D & 159(1) - lax credit for newly established industrial undertakings - Exemption or lower rate certificate - Grant of exemption certificate by the petitioner - Denied by Authority on the ground that there is no provision in the Ordinance to grant exemption certificate for the purpose of tax exemption - Validity - Constitutional petition - FACTS Through this petition, the Petitioner has impugned the rejection of its application filed under section 159(1) of the Income Tax Ordinance, 2001 ("Ordinance") for issuance of exemption certificate. ARGUMENTS Learned counsel for the Petitioner states that the Petitioner claimed tax credit under section 65D of the Ordinance for the tax period 01.09.2014 till 31.08.2019. This request was denied on the ground that there is no provision in the Ordinance to grant exemption certificate for the purposes of tax exemption. Learned counsel for the Petitioner argued that this matter has already been decided by this Court in "Messrs Nishat Dairy (Pvt) Ltd through Company Secretary v. Commissioner Inland Revenue and 4 others" (2013 PTD 1883) and ICA No. 799/2013 dated 18.03.2014 titled "Commissioner Inland Revenue v. Nishat Dairy (Pvt) Ltd" wherein it was held that for the purposes of grant of exemption certificate, tax credit and tax exemption are the same as benefits available to the taxpayer to reduce their tax liability. Hence the Petitioner is entitled to the tax exemption under section 65D of the Ordinance. It is stated by the learned counsel for Respondents No. 5 and 6 that since the law does not provide for tax exemption under section 65D of the Ordinance, hence the application of the Petitioner has been rightly rejected. DECISION (A.) Entitlement of Petitioner for tax exemption - Commissioner has to issue certificate accordingly - At the very outset, it is noted that this matter has been settled by this Court in 2013 PTD 1883 (supra) and in ICA No. 799/2013 dated 18.03.2014 titled "Commissioner Inland Revenue v. Nishat Dairy (Pvt) Ltd". Therefore, there is no merit in the arguments of the learned counsel for Respondents. As per the of this Court, since the Petitioner…

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