Law: Income Tax Ordinance, 1979

Section: 2(17),80B&FirstSched.PartI,Para.A,2(17)& SecondSched.,PartI,cl.103

(a) Income Tax Ordinance (XXXI of 1979)----Ss.2(17), 80-B & & First Sched. Part I, Para.A---Cooperative Society--Interest income--- Assessee was a Cooperative Housing Society---Department found that interest income of the assessee did not fall within the ambit of S.80-B of the Income Tax Ordinance 1979---Validity---Provision of S.80-B of the Income Tax Ordinance, 1979 had come in super session to other provisions and assessee being a juridical person was covered under the provision of S.80-B of the Income Tax Ordinance,. 1979---Department was directed by Appellate Tribunal to charge the tax on interest under S.80-B of the Income Tax Ordinance, 1979 and not beyond that. 1998 PTD 2017 rel. (b) Income Tax Ordinance (XXXI of 1979)----S.2(17) & Second Sched., Part I, cl.103---Cooperative, Housing Society-¬-Income of Cooperative Societies---Membership fee---Nature of receipts--¬Taxability---Business of Cooperative Society was to sell plots to its members only---Membership fee received from members was capital receipts which could not be taxed as purpose of the Society was not distribution of the profit in any manner. I.T.A. No.5453/LB of 1991 rel. (1977) 35 Tax 165 ref. (c) Income Tax Ordinance (XXXI of 1979)--- ----S. 2(17)---Cooperative Housing Society ---Receipts---Expenditure--¬Allowance/deduction---Actual basis---Percentage base---Doctrine of mutuality---Nexus of expenses to income---Expenditures incurred by Cooperative Society were to be allowed against its receipt on actual basis--¬Receipts and expenditure were essentials of a Cooperative Society for running its affairs---Receipts and expenditures were mutually exclusive and doctrine of mutuality was fully applicable---Whether a Society was to be allowed a percentage of expenditure against claim had already been disapproved by the Income Tax Appellate Tribunal---Sources of receipts in a Cooperative Society in one year may not be the same for the subsequent year---If Cooperative Society had some income on account of sale of plots for one year and some expenses were allowed, it could not be said that in subsequent years on receiving penalty from members the same would be disentitled to claim of such…

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