2002 PLP (Trib (PTD)

(12) I.T.A. No.2092/KB/DB of 2001. (Assessment year 1998‑99) (13) I,.T.A. No.2091/KB/DB of 2001 (Assessment year 1998‑99) (14) I.T.A. No.20,89/KB/DB of 2001 (Assessment year 1998‑99) (15) I.T.A. No.2088/KB/DB of 2001 (Assessment year 1998‑99) (16) I.T.A. No.2093/KB/DB of 2001 (Assessment year 1998‑99) Under section 63 (1) Mr. Muhammad Rafiq Bhutto, Ex‑employee United Bank Limited, Sukkur. (2) Mr. Muhammad Suleman, Ex‑employee United Bank Limited, Sukkur. (3) Mr. Muhammad Shoaib, Ex‑employee United Bank Limited, Sukkur. (4) Mr. Abdul Jabbar Memon, Ex‑employe UBL, Sukkur. (5) Mr. Abdul Haleem Ansari, Ex‑employee United Bank Limited, Sukkur. (6) Mr. Abdul Ghani Sheikh, Ex‑employee United Bank Limited; Sukkur. (7) Mr. Abdul Mansoor, Ex‑employee United Bank Limited, Sukkur. (8) Mr. Liaquat Ali Memon, Ex‑employee, United Bank Limited; Sukkur. (9) Mr. Ahmed Khan, Ex‑employee United Bank Limited, Sukkur. (10) Mr. Azhar Ali Khan, Ex‑employee ‑ United Bank Limited, Sukkur. (11) Mr. Saleem Akhtar, ex‑employee United Bank Limited, Sukkur. (12) Mr. Liaquat Ali Pathan, Ex‑employee United Bank Limited, Sukkur. (13) Mr. Muhammad Farooq Rauf Ex‑employee United Bank Limited, Sukkur. (14) Mr. Muhammad Rafiq. Ex‑employee UBL, Sukkur. (15) Mr. Abdul Qayoom, Ex‑employee United Bank Limited, Sukkur. (16) Mr. M. Shahid, Ex‑employee United Bank Limited, Sukkur Appellants. versus The Special Officer of Income Tax Circle‑II, Sukkur .. Respondent According to the learned counsel, the case of the present appellants are identical to the above‑referred decision of this Tribunal. In this case also the amount received as golden hand shake scheme has been taxed by the Department and the issue of tax liability has been decided in the light of relief provided by the Hon'ble High Court. In view of the Hon'ble High Court judgment while upholding the taxability of the amount by way of compensation package under the golden hand shake scheme, the liability should be directed to be re‑computed in accordance with the decision of the Hon'ble High Court at Lahore. In respect of addition made on account of payment received by benevolent fund, this Tribunal has set aside the addition in this respect for fresh adjudication by the Assessing Officer after verifying the bona fide of the certificate submitted by the appellant, as on behalf of the assessee certificate issued by the Operation Manager, United Bank Limited certifying that the payments were received from benevolent fund established under Central Employees Benevolent Fund and Group Insurance Act. Learned counsel has submitted that this issue may please be set aside in accordance with the decision of this Tribunal with the direction as made in that order. Regarding taxability of amount received by way of commutation of pension, learned counsel has submitted that the Tribunal has already deleted the addition made under this head for the reason that the payments received out of pension fund are approved by the Commissioner of Income Tax, Companies‑I, Karachi under Part II of 6th Schedule to the Income Tax Ordinance, 1979 vide approval No. JUD‑I S(76)/E.T./97‑98/409, dated 11‑8‑1997.

3. On the other hand, Mr. Inayatullah Kashani, learned Represntative of the department is supporting the impugned orders of the officers below. We have heard learned Repiesentatives of both the parties and have also perused the impugned order of the learned AAC, assessment order, the order of this Tribunal referred by the learned counsel for the appellant, dated 12‑1‑2002. We have found that as far the taxability of:‑‑ (1) Compensation; (2) Leave encashment; (3) G. P. Fund: and (4) Other benefits, (Medical). this Tribunal has already following the decision of the Hon'ble Lahore High Court held to be taxable, therefore, the taxability under these heads is upheld. Regarding pension commutation, we have found that this Tribunal has deleted the addition in this respect as the amount in this respect had been received out of pension fund approved by the Commissioner of Income Tax, Companies‑1, Karachi under Part‑II of the Second Schedule vide approval No. JUD‑1/S(76)/E.T/97‑98/409, dated H 11‑8‑1997. As the amount have been received under an approved pension fund scheme covered by exemption available under clause (26) of the Second Schedule, the addition in this respect is deleted. Regarding benevolent fund, we have found that the Tribunal has already set aside the addition in this respect for fresh adjudication by the Assessing Officer, as the appellants have submitted the certificate which has also been submitted before us issued by the Operation Manager, United Bank Limited indicating that the payments were received from benevolent fund C established under the Central Employees Benevolent Fund and Group Insurance Act. The addition in this respect, therefore, is set aside, for fresh adjudication by the Assessing Officer after verifying the bona fide of the certificate. It is directed that if it is proved that the payments had been received from a fund established as per the provision of clause 26(A) of the Second Schedule of the Income Tax Ordinance, 1979 then the same may be allowed. The Assessing Officer is also directed to allow consequential relief if any to the appellant.

4. The appeal is allowed to the extent and in the manner as indicated above. C.M.A./M.A.K./318/Tax(Trib.) Order accordingly.