2007 PLP (Trib (PTD)
N/A
| Citation | 2007 PLP (Trib (PTD) |
| Forum / Court | Income-tax Appellate Tribunal Pakistan |
| Bench Members | Ehsan-ur-Rehman, Judicial Member and Naseer Ahmad, Accountant Member |
| Parties | N/A |
| Primary Law | Income Tax Ordinance (XXXI of 1979) |
Q1: What are the key laws and sections cited in 2007 PLP (Trib (PTD)?
This judgment primarily cites: Income Tax Ordinance (XXXI of 1979) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2007 PLP (Trib (PTD)?
The case was heard and decided by the Income-tax Appellate Tribunal Pakistan bench comprising: Ehsan-ur-Rehman, Judicial Member and Naseer Ahmad, Accountant Member.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2007 PLP (Trib (PTD) (N/A). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Zia Haider Rizvi for Appellant.
- Raja Javed Iqbal, I.A.C: (L.T.U.) for Respondent.
Headnotes / Summary
S.9
Ceasing membership on sale of plot or house
Associated membership fee
Amount not returned but stood forfeited in favour of assessee, was income chargeable to tax, however, it was not the entire amount which was received under the head associate membership which could be charged to tax but only such amount in each year shall be included in the income for charging it to tax which is left in the hands of assessee on relinquishing the associate membership by sale of property which took place in each year
Matter was remanded to the Assessing Officer for determining the exact amount which had been forfeited by the assessee or stood surrendered in favour of assessee in each year on their ceasing to be' member on sale of property
Assessing Officer was directed by the Appellate Tribunal to work out and verify from the assessee's record the amount in each year which was to be charged to tax in this manner.
Judgment & Decree
The titled appeals are directed against two separate orders but evenly dated as 8-1-2005. All the appeals are disposed of as under--
2. In assessment year 1996-97, the issue of allowability of expenses on proportionate basis has already been resolved by our earlier order dated 10-4-2007 in I.T.As. Nos.1392/LB to 1397/LB of 2005, findings on this issue as recorded earlier will be applicable hereto.
3. The other issue which is common in all the years is in respect of charging to tax the amount received under the head associate membership deposit, in this respect we have heard both the parties and have also perused the available record. We have noticed that everyone who purchases a plot in the society has to become associate member of the Authority, so has to deposit specified amount prior to acquiring a plot or house. Such amount on ceasing to be member due to disposing of properly is not returned and the person who steps in shoes of the out-going associate member, then has to pay again as his own associate membership fees for acquiring property. In such manner the amount which is not returned but stood Forfeited in favour, of the assessee/appellant is retained. The retaining of such amount is Income chargeable to tax in the hands of the assessee/appellant. It is also to be made abundantly clear here that it is not the entire amount which is received under the head associate membership which could be charged to tax but only such amount in each year shall be included in the income for Charging it to tax which in left in the hands of the appellant/assessee on relinquishing the associate membership by sale of property which took place, in each year. So to give effect to such instructions the matter is being remanded to the Assessing Officer for determining the exact amount which has been forfeited by the appellant/assessee or stood surrendered in favour of appellant/assessee in each year on their ceasing to be member on sale of property. The Assessing Officer is directed to work out and verify from the assessee/appellant record the amount in each year which is to be charged to tax in this manner.
4. To contest the disallowing of claim of exemption on support funds and development charges nothing has been submitted as plausible in assessment year 1996-1997 so this ground being devoid of any merit is dismissed.
5. All the appeals are disposed of as above. M.B.A./88/Tax(Trib) Order accordingly.