Law: Income Tax Ordinance, 2001

Section: 120(1)(B), 122(5A), 127

Law: Workers Welfare Fund Ordinance, 1971

Section: 4

  ORDER M. M. AKRAM (Judicial Member): The instant appeals have been instituted by the appellant–taxpayer as first appeals before this Tribunal in exercise of the option conferred by the proviso to sub-section (1) of section 127 of the Income Tax Ordinance, 2001 (“the Ordinance”), assailing the amended assessment Orders all dated November 26, 2025, passed by the learned Additional Commissioner Inland Revenue, Large Taxpayer Office, Islamabad (“the Addl CIR”), under section 122(5A) of the Ordinance, relevant to the Tax Years 2021, 2022 and 2023. Through the impugned orders, Workers’ Welfare Fund (WWF) was levied under section 4 of the Workers’ Welfare Fund Ordinance, 1971 (“the WWFO”) on the income declared by the appellant as exempt in its returns. The appeals have been preferred on the grounds articulated in the respective memoranda of appeal. Since common questions of fact and law are involved, the same are being disposed of through this consolidated order. 2.      Succinctly stated, the relevant facts are that the appellant is a private limited company incorporated in Pakistan on August 12, 2014. Its principal business activities comprise the development, ownership, operation and maintenance of electric power generation facilities. The appellant filed its returns of income for the Tax Years 2021, 2022 and 2023, declaring a loss of Rs. 23,320,151,580 for Tax Year 2021 and business income of Rs. 8,179,443,434 and Rs. 8,373,120,960 for Tax Years 2022 and 2023, respectively. These returns were processed and deemed to have been assessed under section 120(1)(b) of the Ordinance. Subsequently, upon examination of the assessment record, the department formed the view that the deemed assessment orders were erroneous insofar as they were prejudicial to the interest of revenue, particularly on the premise that WWF under section 4 of the Workers’ Welfare Fund Ordinance, 1971 had not been charged on the total income claimed as exempt by the appellant. Consequently, a show cause notice under section 122(9) of the Ordinance was issued on January 14, 2025, culminating in…