Law: Income Tax Ordinance, 2001

Section: 2(36)(c), 113, 122(5A)

APPELLATE TRIBUNAL INLAND REVENUE OF PAKISTAN   Case Summary: Tribunal Appeal on Tax Assessment for TY 2016 Taxpayer (educational institution) appealed against CIR(A)'s order upholding AO's amended assessment under section 122(5A), which disallowed tax credit u/s 100C (Rs.140,778) due to lack of NPO approval u/s 2(36)(c) and imposed minimum tax u/s 113 (Rs.2,147,962) on receipts. Core Points Background: Return filed with nil income (deemed assessed u/s 120). AO amended order for erroneous credit claim and min tax failure on 1% of receipts (excluding FFCL subsidy argued as non-turnover grant). Taxpayer's Arguments: AO exceeded show-cause scope; subsidy not "turnover" u/s 113(3); credit allowable as application deemed approved; prior Tribunal wins (TY 2011-2015) binding u/s 124A. ** Department's Arguments**: Prior decision distinguishable; each TY separate; section 124A discretionary ("may"). Tribunal Ruling: Accepted appeal, annulled both orders. Identical issues (min tax exclusion + 100C credit) decided in taxpayer's favor in ITAS 890-894/2017 (unreversed). Section 124A mandatory per Supreme Court (e.g., Abu Bakar Siddique, 2004 PTD 2187)—binds authorities on settled issues to avoid relitigation. Outcome: Orders illegal; revenue bound by prior precedent.   ORDER MIAN ABDUL BASIT(MEMBER): The titled appeal has been filed by the appellant/taxpayer against the impugned order dated 21.12.2018 passed by the Commissioner Inland Revenue (Appeals), Bahawalpur [CIR(A)], whereby the appeal filed against the order passed by the Assessing Officer under section 122(5A) of the Income Tax Ordinance, 2001 (the Ordinance, 2001) was dismissed and the assessing officer's order was confirmed. 2. Brief facts of the case are that the taxpayer, running an educational institution, filed its return for tax year 2016 declaring nil income, which was deemed assessed under section 120(1)(a) of the Ordinance, 2001. The return was subsequently examined by the learned Additional Commissioner Inland Revenue, who observed that the taxpayer had claimed tax credit of Rs.140,778/- under section IOOC without obtaining approval under…