Law: Income Tax Ordinance, 1979

Section: 2,2(16),2(16)(bb)

(a) Income Tax Ordinance (XXXI of 1979)---S.2(16)(bb)---Trust Act (II of 1882), S.5---Trust formed under provisions of general law i.e. Trusts Act, 1882 and not under a special law, would not fall within scope of definition of `company' given in S.2(16) of Income Tax Ordinance, 1979. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.2(16)---Trusts Act (II of 1882), S.5---Phrase "a trust formed, under any law for the time being in force "---Connotation---Trust formed under a special law would fall into the definition of a company for the purposes of Income Tax Ordinance, 1979 and a trust formed under the provisions of general law, i.e. Trust Act, 1882, is outside the scope of the definition of a company given in S.2(16) of the Income Tax Ordinance, 1979. THIS JUDGMENT DELIVERED BY: MUHAMMAD MUNIR PERACHA, J.---The respondent assessee is a Trust, registered and governed by the Trust Act, 1882. The assessee filed return of income for the income year 2002-03. The taxation officer vide order-dated 25-5-2005, assessed the income of the assessee and Income Tax thereon as a company. The assessee challenged the order passed by the taxation officer through an appeal filed with Commissioner of Income Tax (Appeals). The Commissioner (Appeals) vide order dated 27-8-2005, came to the conclusion that the status of the assessee is that of an AOP. The Commissioner of Income Tax felt aggrieved of the said order and approached income tax Appellate Tribunal. The Appellate Tribunal vide judgment dated 7-1-2006, concurred with the finding recorded by the Commissioner (Appeals). The Commissioner Income Tax has challenged the order dated 7-1-2006, passed by the Tribunal through the present reference. The question of law proposed by the Commissioner Income Tax is as under: "Whether on the facts and in the circumstances of the case the learned ITAT was justified to hold that the assessee though registered and governed by the provisions of Trust Act, 1882 cannot be assigned the status of company under section 2(16)(bb) of the Income Tax…

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