Law: Income Tax Ordinance, 1979

Section: 65,65(1)(a)(b)&2(21)(44),55,166,1(3),154

(a) Interpretation of statutes---- ---Title of a section not a part of provision of law and cannot control words used in statute--Heading or marginal notes at best be regarded as preamble to section and cannot be a guide to interpret plain words of statute. Zabair Siddiqui v. M.N. Sufi P L D 1964 Lah. 453 and Balraj Kunwar v. Jagat Pal Singh 31 IA 132 ref. (b) Income-tax Ordinance (XXXI of 1979)--Ss. 65(1)(a)(b) & 2(21)(44)--Words "any income", "total income"-�Interpretation. While interpreting clauses (a) and (b) of subsection (1) of section 65, Income-tax Ordinance, 1979 the concept of income and the total income has to be kept in mind. Income is a wider concept, which includes total income. The word 'income' has been defined by section 2(21) though not exhaustively. According to the definition it includes any income, profits or gains, from whatever source derived, chargeable to tax under any provision of this Ordinance under any head specified in section 15. It even includes any loss of such income and profits or gains. On the other hand total income has been defined by section 2(44). Total income is that kind of income, the total amount of which is computed in the manner laid down in Ordinance XXXI of 1979. Thus, the total income has relevance to the computation of income for purposes of tax. Section 9, which is the charging section, also talks about the total income. Thus, while reading clauses (a) and (b) of section 65 this distinction between income and total income has to be kept in mind. Since clause (a) is talking about that income which is yet to be computed therefore, the word 'total income' could not be used. The word 'total income' is relatable to the computation of the income and chargeability of tax thereon. In clause (b), therefore, the word 'total income' has been used because total income has already been computed. Since the total income has been under assessed or assessed at too low a rate etc., therefore, the word 'total income' has been used in clause (b). The word 'total income' could not be used in clause (a) as it is relatable to the complete escapement of income. Unless income is computed, it cannot become a total income. The total…

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