Law: Income Tax Ordinance, 1979

Section: 52,50(7D),50(8),2(32),9,151,SecondSched. ,

(a) Income Tax Ordinance (XXXI of 1979)----Ss. 52, 50(7D), 50(8), 2(32), 9, 151, Second Sched., Part-I, Cls. (115-A), (79A) & (79B)---Sales of Goods Act (III of 1930), S.2(7)---Pakistan Water and Power Development Act (XXXI of 1958)---Liability of persons failing to deduct or pay tax---Exemptions---Institutions of WAPDA like WAPDA Pension Fund, WAPDA G.P. Fund, WAPDA Welfare Fund, which were not trusts or otherwise independent legal entities, acquired the bonds directly from the Directorate of Bonds and interests thereon was credited to their account without deduction of tax---Assessing Officer found the appellant as assessee in default for not deducting tax on profits paid to WAPDA formations and employees---Validity---If one branch of the assessee earns a profit of an amount in its books, an equal amount was shown as expense by the Directorate of Bonds---Sum of both the entries was zero---Assessee, being the owner of the income and loss of the transactions, earns no income---No charge of tax was created under the charging section---Deduction of tax was mode of recovery to satisfy the charge created by law and there being no charge of tax on the internal transaction of the same person, question of deduction of tax would not arise---Assessee, in the present case, owned income or loss of all the transactions and payees were acting on behalf of the assessee having no claim on the profit of the transactions, there being no charge on the inter-departmental transactions-of the assessee, payer and payee being the same person, question of default would not arise---Assessing Officer acted illegally in holding the appellant as assessee in default for not deducting tax on profit paid in books to its own formations---Payees were employees of WAPDA and the Assessing Officer did not establish that the payees received any amount as income which was owned by them in their personal capacity, in case, they were not chargeable to tax in respect of the payments in question, question of adjustment or tax in terms of S.50(8) of the Income Tax Ordinance, 1979 would not arise---Such a situation is contradiction in terms---Payees were not assessable in respect of the profit on…

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