Law: Income Tax Ordinance, 1979

Section: FirstSched.,Cl.2B,134

(a) Income Tax Ordinance (XXXI of 1979)---First Sched., Part-IV Cl. (2B)---Companies Act (VII of 1913), Preamble---Super tax--Assessee was a registered firm and derived income from consultancy as Architects---Assessee claimed exemption from super tax under Cl. (2B) of Part-IV to the First Schedule of the Income Tax Ordinance, 1979---Validity---Appellate Tribunal did not agree with the assessee that the condition precedent for allowing exemption viz "partners are prevented to constitute a corporate body" shall not apply in case such profession consists wholly or mainly in the making of contracts on behalf of other person or giving to other persons of advice of a commercial nature in making contracts---Sub-para. (2B) of para. A of Part-IV to the First Schedule of the Income Tax Ordinance, 1979 showed that mere involvement in such profession, would not absolve the assessee from charge of super tax unless there was legal restriction on the assessee debarring it from constituting into a corporate body with a limited liability, which could be registered as a company under the Companies Act, 1913---Such sort of restriction amongst others was independent in nature besides being mandatory' and nothing to do with remaining contents/conditions of sub-para. (2B) of Para. A of Part-IV of the First Schedule of the Income Tax Ordinance, 1979---Mere running such profession would not save the assessee from clutches of super tax as admittedly there was no bar on the assessee's firm to constitute themselves into a corporate body with a limited liability which could be registered as a company under the Companies Act, 1913. I.T.A. No.632/KB of 1999 rel. (b) Income Tax Ordinance (XXXI of 1979)--- ---First Sched., Part-IV, Cl. (2B)---Super tax---Exemption---Clause (2B) of First Schedule Part-IV of Income Tax Ordinance, (1979) pertaining to super tax shall give exemption only to such income of registered firm which depends wholly or mainly on the professional qualifications of its partners who were prevented by any law or by convention or rules or regulations of the professional association, society or similar body of which they were members to constitute themselves into a corporate…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492