National Investment Trust Deed

While charging tax on income of Banking Company, Assessing Officer found that profit distributed by the National Investment Trust could not be treated dividend as unit holders were neither shareholders of National Investment Trust nor had voting right and tax was charged was 62% according to para. A(1) of Part V of .First Sched. of the Income Tax Ordinance, 1979

Validity

National Investment Trust was a company and income derived there from by unit holders constituted dividend income

Consequently, dividend income derived from National Investment Trust was to be charged to tax at the concessional rate of 5 % according to para. D of Part V of First Sched. of Income Tax Ordinance, 1979.