Law: Income Tax Ordinance, 1979

Section: 89,62

Law: Workers Welfare Fund Ordinance, 1971

Section: 4(8)

Income Tax Ordinance (XXXI of 1979)----S. 89---Workers Welfare Fund Ordinance, 1971, S.4(8)---Additional tax---Changeability---Assessing Officer levied additional tax on total demand inclusive of Workers Welfare Fund at the rate provided in the Income Tax Ordinance, 1979 which was confirmed by the First Appellate Authority on the ground that demand of arrears inclusive of Workers Welfare Fund fell pursuant to notice under S.89 consequent upon proceedings under S.62 which was part of Chap. VII of the Income Tax Ordinance, 1979---Validity--¬Additional tax on demand of Workers Welfare Fund could be levied only at the rate provided in the Workers Welfare Fund Ordinance, 1971 and not under S.89 of the Income Tax Ordinance, 1979, which additional tax consequent upon default in payment of tax due was to be calculated after ascertaining the correct amount of outstanding demand in the relevant assessment years. 1996 PTD 3 and 1987 PTD (Trib.) 580 ref. ORDER MUHAMMAD MUJIBULLAH SIDDIQUI (CHAIRMAN).---The above appeals at the instance of assessee are directed against the order, dated 28-2-1998 by the learned C.I.T.(A), in I.T.As. Nos.20 and 21 of 1998 relating to the assessment years 1994-95 and 1995-96. Both the appeals arise out of order under section 89 of the Income Tax Ordinance, 1979 whereby additional tax has been levied. 2. According to the order for the assessment year 1994-95 the audit authorities raised objection that the assessment for the assessment year 1994-95 was completed on 30-5-1995. The appellant company failed to make payment of demand within the stipulated period. The assessing officer, therefore, issued a show-cause notice for compliance on 6-2-1997. The A.R. of the appellant sought extension of time which was allowed upto 17-2-1997. On 17-2-1997 nobody attended and no explanation was furnished, therefore the assessing officer concluded the proceedings with the observation that the appellant has no objection to the charging of additional tax under section 89. He ultimately charged tax under section 89 at 15 % as follows:--- Amount Paid on Default Tax a/s. 89 Charged. Rs.4,20,598 11-6-1996 376 days Rs.64,991 Rs.6,00,000 24-7-1996 35 days Rs.8,630…

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