COMMISSIONER INLAND REVENUE RTO, ISLAMABAD vs PAK TELECOMMUNICATION EMPLOYEES TRUST Ss

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COMMISSIONER INLAND REVENUE RTO, ISLAMABAD VS PAK TELECOMMUNICATION EMPLOYEES TRUST Ss.2(5), 14(1)(a), Second Schedule, Part-I, Cl. 56 (2)(ii) & Sixth Schedule, R.1(1)---Income Tax Ordinance (XLIX of 2001), S.133---Pakistan Telecommunication (Re-organization) Act (XVII of 1996), Ss.44 & 53---Pakistan Telecommunication Corporation Employees' Pension Fund (PTEPF)---Tax exemption for new entity---Dispute was with regard to tax exemptions availed by Pakistan Telecommunication Employees Trust (PTET) which was successor of PTEPF---Validity---PTEPF constituted through Trust Deed was accorded approval by Commissioner of Income Tax / Wealth Tax in terms of Part-II of the Sixth Schedule to Income Tax Ordinance, 1979---Such approval gave the Pension Fund status of "approved superannuation fund" as defined in S.2(5) of Income Tax Ordinance, 1979---Income of an approved superannuation fund under S.14(1)(a) read with Cl.56(2)(ii) in Part-I of the Second Schedule to Income Tax Ordinance, 1979, was exempted from tax---PTEPF did not pay tax on its income on account of having status of an approved superannuation fund---Creation of PTET by dint of the provisions of Pakistan Telecommunication (Re-organization) Act, 1996, did not operate as an alteration in the constitution, objects or conditions of PTEPF created through Trust Deed---Approval granted by Commissioner under the Sixth Schedule to Income Tax Ordinance, 1979, was not deemed to have been withdrawn as over a period of sixteen years viz the issuance of exemption certificates under S.159 of Income Tax Ordinance, 2001---Each of the exemption certificates were issued by Commissioner after the enactment of Pakistan Telecommunication (Re-organization) Act, 1996 and establishment of PTET---Such exemption certificates were not granted to PTEPF but to PTET, which was a creature of Pakistan Telecommunication (Re-organization) Act, 1996---In the exemption certificates, it was explicitly mentioned that income of the Trust was exempt from the levy of tax---Exemption certificates were granted by different Commissioners who were proficient in fiscal laws---High Court declined to interfere in order passed by Income Tax Appellate Tribunal---Reference was dismissed in circumstances.

COMMISSIONER INLAND REVENUE RTO, ISLAMABAD vs PAK TELECOMMUNICATION EMPLOYEES TRUST Ss — 2022 PTD 696 ISLAMABAD

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