Law: Constitution of Pakistan, 1973

Section: 199, 2(36), 49, 100C, 238, 239(9),165-A

Law: Income Tax Ordinance, 2001

Section: 21-A

Law: Pakistan Defence Officers Housing Authority Order (7 of 1980)

Section:

Summary The petitioner, Pakistan Defence Officers Housing Authority (DHA), sought recognition as a Non-Profit Organization (NPO) under the Income Tax Ordinance, 2001 and exemption from income tax. The tax authorities rejected its application, holding that DHA was a state-owned corporate body engaged in commercial activities and therefore not entitled to NPO status or exemption under Section 49 of the Ordinance. The Court held that although DHA does not qualify as an NPO under Section 2(36), it remained entitled to income tax exemption under Article 21-A of the Pakistan Defence Officers Housing Authority (Amendment) Order, 1982. The Court ruled that this statutory exemption survived the repeal of the Income Tax Ordinance, 1979 through the saving provisions of the Income Tax Ordinance, 2001. Consequently, the impugned orders were set aside, and DHA's application for tax exemption was allowed. Sections Used Article 199, Constitution of the Islamic Republic of Pakistan, 1973 Section 2(36), Income Tax Ordinance, 2001 Section 49, Income Tax Ordinance, 2001 Section 100C, Income Tax Ordinance, 2001 Section 238, Income Tax Ordinance, 2001 Section 239(9), Income Tax Ordinance, 2001 Article 21-A, Pakistan Defence Officers Housing Authority (Amendment) Order, 1982 President's Order No. 7 of 1980 Article 165A, Constitution of the Islamic Republic of Pakistan, 1973 Two 2-Word Descriptions Tax Exemption NPO Status     ORDER Through this petition, the petitioner seeks following relief(s): “a. Declare that the Petitioner is a Non Profit Organization and is entitled to the approval/ certificate as such under the provisions of the Income Tax Ordinance, 2001. Declare that the Petitioner is also entitled to the benefit of Section 100C of the Income Tax Ordinance, 2001 Declare that the Orders dated 12.8.15 and 09.04.14 passed by the Respondents No.2 and 3 are arbitrary, illegal, mala fide and without jurisdiction. Direct the Respondents No 2 and 3 to issue approval / certificate of Non Profit Organization in terms of Section 2(36) of the Income Tax Ordinance 2011, to the Petitioner Restrain the Respondents, their officers from taking any action adverse to the…