Total Income

Charge of Workers Welfare Fund on the total income of the Power company by extending the application of provisions of Workers Welfare Fund Ordinance, 1971

Validity

Workers Welfare Fund was chargeable on the "total income" of an industrial establishment and not on "taxable income"

Workers Welfare Fund was chargeable not only from one but all I.P.Ps, as well

Any other I.P.P. was an industrial establishment within the meaning of Workers Welfare Fund Ordinance, 1971

Contention that electricity generated by assessee or any other I.P.P. was not an "article" within the meaning of Workers Welfare Fund Ordinance, 1971 was without substance

Criteria for an industrial establishment were the use of electricity for its operation

Claim that assessee company was not an industrial establishment was baseless.

Demand of Workers' Welfare Fund was raised on the basis of net profit as per account being higher than the income of return by passing order under S.221 of the Income Tax Ordinance, 2001

First Appellate Authority held that Workers' Welfare Fund was chargeable on total income as was assessable under the Income Tax Ordinance, 2001 instead of accounting profit (before taxation); and order of Taxation Officer was against the provisions of charging S.4 of Workers' Welfare Fund Ordinance, 1971 which would prevail over the definition of total income

Validity

At the time of amendment in definition of total income in S.2, corresponding amendments had not been made in S.4(i) of Workers' Welfare Fund Ordinance, 1971 which at that time provided that industrial establishment shall pay to the Fund equal to two percent "of so much of its total income as is assessable under the Ordinance "

Subsection (4) of S.4 of the Workers' Welfare Fund Ordinance, 1971 at that time provided "At the time of making an assessment under the Ordinance or as soon thereafter as may be, the Taxation Officer shall" by order in writing, determine the amount due from industrial establishment under subsection (1), if any, on the basis of the income so assessed"-Words "of so much of its total income as is assessable under the Ordinance" clinch the issue in favour of the taxpayer and such words were omitted through Finance Act, 2008 and could not operate retrospectively

Federal Board of Revenue admitted the lacunas in S.4 of Workers' Welfare Fund Ordinance, 1971 at the time of amendment through Finance Act, 2006

Order passed by the Taxation Officer suffered from legal infirmity

First Appellate Authority correctly deleted the Workers' Welfare Fund demand raised by the Taxation Officer and confirmed the order of First Appellate Authority

Appeal of the Department was without merit and dismissed by the Appellate Tribunal.

Total Income Transfer of assets-Oral transfer of immovable property to wife in lieu of dower debt-No registered document-Whether transfer effective-Whether income from property includible in husband's income-Indian Income-tax Act, 1922, S. 16(3).