Law: Income Tax Ordinance, 1979

Section: 151,14(1)&2(6)(32),SecondSched

Law: Constitution of Pakistan, 1973

Section: FourthSched.

(a) Interpretation of statutes--- ---- Legislature cannot be imputed with the ignorance of law of the land and no superfluity can be assigned to it vis-a-vis the laws it enacts. (b) Income Tax Ordinance (XXXI of 1979)--- ----Second Sched., Cl. 99, Ss.151, 14(1) & 2(6)(32)---Constitution of Pakistan (1973), Fourth Sched., Federal Legislative List ---Assessee deriving income from business of fish catching which he carried on in partnership with his wife under the name and style of a firm and the partnership was not registered either with the Registrar of Firms or with the Income-tax Department---Clair of exemption of income from said business by assessee---Validity. In the present case the exemption was claimed regarding income frorm fish catching. It does not fall within the ambit of any of the entries of Federal Legislative List of Fourth Schedule of the Constitution of Islamic Republic of Pakistan. Any income from any source including income from fish catching is chargeable to tax unless the Legislature has been made incompetent to make it chargeable or unless it falls under any of the clauses of the Second Schedule c the Income Tax Ordinance which is enacted pursuant to the provision c section 14(1) of the Income Tax Ordinance. Clause (99) of the Second Schedule of the Income Tax Ordinance says that any income derived by an assessee after 30-6-1975 and before 1-7-1988 from fish catching was exempt from tax. It is important to note that the expression "an assessee" has been used in this clause. Since a firm whether registered or unregistered falls within the definition of an "assessee" and "person" as contained in clauses (6) and (32) of section 2 of the Income Tax Ordinance and since its partners also are included within the folds of both the definitions, it is, therefore, obvious that the first recipient of the fish catching income would be the firm and the second recipient would be its partners. Section 151 applies in the case of the assessee. M/s. Julian Hoshing Dinshaw Trust v. ITO 1992 PTD 1; 1985 PTD (Trib.) 869 and (1985) 52 Tax (Trib.) 59 ref. ORDER The assessee derived his income in the assessment years 1983-84, 1984-85, 1985-86, 1986-87 and…

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