Law: Income Tax Ordinance, 1979

Section: SecondSched.,Cl.110,52

(a) Income Tax Ordinance (XXXI of 1979)--Second Sched., Part-II, cl. (110)---Exemption---Assessing Officer refused to. grant exemption from tax on share income received by the assessee-company as member of association of persons on the ground that the same was not available to the company as a member of association of persons---Validity---Words "on which tax has already been paid by the association" occurring in cl. (110) clearly indicate that the sole purpose of said clause was to save the member of the association from double taxation, one in the hands of association of persons and again in the hands of member---Clause showed that the words in parenthesis refer to the term "association of persons" and not to the term "member", maximum that could be said about the view of the Revenue was that their interpretation of the provision was also possible, but then it was an accepted rule of construction that where there were two interpretations of the provision, one that favours the subject shall prevail for that reason also view of the Department was not supported by the Appellate Tribunal---Assessee/company's claim for exemption was justified and same was allowed by the Appellate Tribunal. 2000 PTD (Trib.) 2664; 2001 PTD (Trib.) 2605 and 2003 PTD (Trib.) 1167 ref. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.52---Liability of persons failing to deduct or pay tax---Limitation---Assessing Officer could not go beyond the period of four years for the call for books of accounts----First Appellate Authority decided that order passed under S.52 of the Income Tax Ordinance, 1979 were hit by limitation and these were accordingly annulled---Order of First Appellate Authority was in accordance with a settled law. 2003 PTD (Trib.) 1167 rel. (c) Income Tax Ordinance (XXXI of 1979)--- ----S.52---Liability of persons failing to deduct or pay tax---Tax was charged on 10% of payments made towards purchases---First Appellate Authority described such levy as being improper and illegal---Observation of the First Appellate Authority was strengthened by of Appellate Tribunal in which it was held that the information for holding assessee as "assessee in default" required even…

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