Law: Income Tax Ordinance, 1979

Section: SecondSched.,Cl.93,Cl.94

Income Tax Ordinance (XXXI of 1979)----Second Sched., Cls. (93) & (94)----Charitable and religious trust---Exemption from tax, claim for---Scope---Not necessary for trust to spend its entire income of assessment year in the year in which same was earned for charity---Even setting apart income for purposes of fund to be in accord with provision of CL. (93) of Second Sched., of Income Tax Ordinance, 1979 would be enough to avail exemption there under---Trust would be entitled to such claim in absence of any proof regarding misuse of any part of income for purposes other than purposes of funds or acquisition of any personal benefit by its members---Principles. ORDER MUHAMMAD ATHAR SAEED, J.---These Income Tax Appeals have been filed against the order of the Income Tax Appellate Tribunal dated 2-4-1997, seeking the opinion of this Court on the following identical question --- "Whether on facts & circumstances of the case the learned Income Tax Appellate Tribunal was justified to hold that Assessees Trust (Messrs Samad Charitable Trust) qualifies for exemption under clause (93) of the Second Schedule of the Income Tax Ordinance, 1979?" 2. We have heard Mr. Aqeel Ahmed Abbasi, the learned counsel for the appellant and perused the impugned order. 3. At the very outset Mr. Aqeel Ahmed Abbasi, pointed out that this is a majority order as initially there was a difference of opinion between the learned Judicial Member and the learned Accountant Member. The learned Accountant Member had held that the applicant was entitled to exemption under clause (93) of the Second Schedule to the Income Tax Ordinance, 1979, whereas the learned Judicial Member did not agree with him and held that the respondent was not entitled to exemption under clause (93) of the Second Schedule. Due to this difference of opinion the following issue was referred to the learned Chairman for adjudication:--- "Whether under the facts and circumstances of the case, the income of assessee---Trust (Samad Charitable Trust) is liable for exemption in all the relevant assessment years?" 4. The learned Chairman agreed with the opinion of the learned Accountant Member that the applicant is entitled to…

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