Law: Income Tax Ordinance, 2001

Section: 21,21(c),120,121,122(1),122(4),124,149,1 60,161,169,174,177

Law: Income Tax Rules, 2002

Section: 13

ORDER: Titled appeal has been filed by the taxpayer against appellate Order No.740/2016 dated 20.06.2016 passed under section 124 of the Income Tax Ordinance, 2001 by learned Commissioner IR (Appeals-I), Islamabad. The appellant has raised grounds, reproduced below: (a) ¦¦. (b) The CIR (A) LTU Islamabad has erred in disallowing salaries under section 21(c) of the ITO 2001 for alleged non/incorrect deduction of withholding tax under section 149 aggregating to Rs. 10,427,236/- on the basis of non provision of information / documentation and without considering /cross checking if the respective employee /taxpayer has already paid tax allegedly not deducted by the foundation at the time of filing of return on income for the tax year 2009. (c) CIR (A) has erred in not giving any directions on allocating the additions of salaries on proportionate basis on gross values of exempt income, normal income and Fixed Tax Regime (FTR) income ignoring the provisions of section 67 of the ITO 2001 read with Rule 13 of the ITO 2002. This has resulted in incorrect determination of taxable income. (d) CIR (A) has erred in treating the gross salary as taxable income of each employee ignoring the following: i. Tax due under section 149 of the ITO 2001 to be determined on taxable salary income and not the gross salary, ii. Taxpayer / employee is entitled to adjustment from taxable income of Zakat paid under section 60 of the ITO 2001, iii. Taxpayer / employee is entitled to adjustment from taxable income of donations paid to approve organizations as provided in clause 61 of Part I of the Second Schedule to the ITO 2001, iv. Taxpayer /employee is entitled to various tax credits due under sections 61 to 64 of the ITO 2001 and v. Taxpayer / employee is entitled to adjustment of various advance taxes paid under sections 231 to 236 of the ITO 2001 vi. Without prejudice to the above grounds Nos. 2 to 4, the add back of Rs.6,130,776,776/- and Rs.4,296,460/- includes the credit entries 2. Briefly stated facts leading to the instant case as transpired from impugned order are that appellant Shaheen Foundation a trust established under Charitable Endowments Act, 1890, and registered with…

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