Law: Income Tax Ordinance, 2001

Section: 131,133

Law: Constitution of Pakistan, 1973

Section: 185(3)

(a) Income Tax Ordinance (XLIX of 2001)--- ----Ss. 131, 133---Constitution of Pakistan, Art. 185(3)---Questions of law not raised before the Tribunal or High Court---Supreme Court is not a forum to raise fresh questions of law which have not been examined by the Tribunal or the High Court or do not even arise from the decision of the Tribunal---In numerous cases, a totally new question of law, which has not been raised earlier is agitated before the Supreme Court for the first time without disclosing that it has not been raised earlier---Supreme Court deprecated such practice and observed that the parties must restrict themselves to the questions of law raised and decided by the High Court and desist from introducing a new question of law by giving an impression that the same was not addressed by the forums below. (b) Income Tax Ordinance (XLIX of 2001)--- ----S. 21(e)---Income from business, computation of---Deductions not allowed---Contributions made by tax-payer company to an unapproved gratuity fund---Section 21(e) of the Income Tax Ordinance, 2001 clearly stipulates that the contributions to an unapproved gratuity fund cannot be deducted while computing the income tax of a person under the head “Income from Business”---Admittedly, in the present case, the gratuity fund has not been approved---Contention of the counsel for the tax payer that once the contribution is made to a gratuity fund, section 21(e) is not applicable, is an absurd argument and totally negates the purpose and object of the statutory requirement of an approved gratuity fund---If the argument of the counsel were to hold true, the requirement of an approved gratuity fund is rendered totally meaningless, if the taxpayer simply states making the contribution to an unapproved gratuity fund and thereafter seeks deduction from the income from business---Such an interpretation is not only absurd but is also unsustainable in law---Petition for leave to appeal was dismissed and leave was refused. Date of hearing: 23rd August, 2022. ORDER SYED MANSOOR ALI SHAH, J.---The question of law raised in the Tax Reference filed before the High Court was whether the learned Appellate Tribunal Inland Revenue…

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