Law: Income Tax Ordinance, 1979

Section: 16,16(2)(a)(iii),31,31(1)(b)

(a) Income Tax Ordinance (XXXI of 1979)---S.16---Salary income---Determination---Condition precedent to the classification of the income under S.16 of the Income Tax Ordinance, 1979 was that the payer and the payee had the relationship of the "employer" and the "employee". (b) Income Tax Ordinance (XXXI of 1979)---Ss.16, 30 & 31(l)(b)---Salary income---Income from other sources--­Assessee received commission from his employer in addition to his monthly salary and claimed expenditure /exemption 30% of such commission under S.31(1)(b) of the Income Tax Ordinance, 1979 being commission income chargeable under S.30 of the Income Tax Ordinance, 1979---Validity--­Assessee received commission from his employer in addition to his salary, which was assessable under.S.16(2)(a)(iii) of the Income Tax Ordinance, 1979 and there was no provision under S.16 of the Ordinance to allow any deduction on account of any expenditure incurred to such commission--­Commission was not assessable under S.30 of the Income Tax Ordinance, 1979----Expenditure disallowed by the Assessing Officer in respect of such commission was upheld by the Appellate Tribunal in circumstances. I.T.A. No. 1834/KB of 1984-85 ref THIS ORDER PASSED BY : S. M. SIBTAIN (ACCOUNTANT MEMBER). ---Objection is taken in this appeal on behalf of the Department against the order of the learned C.I.T.(A) for directing to allow expenses claimed by the respondent Q 30% of the commission received by him from his employer in addition to his monthly salary. 2 We have heard the learned D.R. as well as the respondent. 3. Briefly, the facts are that the respondent is an employer of Greaves Cotton Pakistan (Pvt.) Ltd. He receives from his employer, in addition to his salary, commission on the amount of business secured by him. He has been claiming exemption on commission income to such extent in the preceding years which has been allowed. 4. In the instant year too he has claimed such exemption amounting to Rs.1,50,585 Q 30% of commission received amounting to Rs.5,01,950 in addition to salary amounting to Rs.1,61,700. The learned. Assessing Officer has asked the respondent to indicate the provision of law under which the…

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