2010  PTD  355     INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN

Local authority—Regulatory authority—Status of Oil and Gas Regulatory Authority—Local authority, in addition to other features, has the powers to lay out towns, mandis, market places, villages, roads, break up land for cultivation etc—Such features essentially lead to infer that all the operations of a local authority were restricted in a limited area for the uplift and welfare of inhabitants of that very area–Local authority generates its own revenue through imposition of local taxes and shortfall of finances, if any, was met out of the grants from the Provincial Government—Characteristic of Oil and Gas Regulatory Authority’s operations were in no way similar ‘to those of a local authority—Oil and Gas Regulatory Authority was not a local authority, it was rather a regulatory authority which was specifically established to regulate the ‘ functions’ of Oil and Gas sector in the country.

 

 

2010  PTD  355     INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN

Local authority—Status of Oil and Gas Regulatory Authority with reference to “local authority”.

 

 

2010  PTD  355     INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN

S. 18—Local fund—National fund—Provisions of S.18 of the Oil and Gas Regulatory Authority Ordinance, 2002 did not lead to that the Oil and Gas Regulatory Authority fund was “local fund”—Local fund means the fund vested in any authority which had its operations restricted to “local area”, whereas Oil and Gas Regulatory Authority’s operations were spread all over the country and its funds could not be treated as a “local fund”-Oil and Gas Regulatory Authority’s fund was a “national fund”.

 

 

2010  PTD  355     INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN

  

 

S.11 & 39—Heads of income—Income from other sources-Income of Oil and Gas Regulatory Authority—Section 11 of the Income Tax Ordinance, 2001 included salaries, rent of property, business, capital gains and income from other sources—Any income which did not fall in the definition of any of such specific heads was taxable as “income from other sources “—Certain specific sources of income had been specifically classified as “other sources” of income under S.39 of the Income Tax Ordinance, 1979—Income of Oil and Gas Regulatory Authority did not fall in any category of income classified as other sources under S.39 of the Income Tax Ordinance, 2001—Such was apt income from business and trade—Oil and Gas Regulatory Authority was in receipt of consultancy charges and fees from business of regulatory activities of Oil and Gas sector—Taxpayer was clearly engaged in a regular business/trade and it’s income would not fall in any of the categories mentioned in section 39 of the Income Tax Ordinance, 2001.

 

2010  PTD  355     INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN

S.49(2)—Income of Federal Government, Provincial Government, and Local Government—Exemption—Oil and Gas Regulatory Authority being not a “local authority”, it was not covered under S.49(2) of the Income Tax Ordinance, 2001 for the purpose of exemption from tax.

 

 

2010  PTD  355     INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN

 

S.80(2)(b)—Oil and Gas Regulatory Authority Ordinance, (XVII of 2002), S.3(2)—Person—Company—Status of Oil and Gas Regulatory Authority—Claim of exemption from tax—Validity—Under the provisions of S.3(2) of Oil and Gas Regulatory Authority Ordinance, 2002, the Oil and Gas Regulatory Authority was a “body corporate”—Said Authority had rightly been treated as a “public company” for the purposes of taxation in the light of provisions contained in section 80(2)(b) of the Income Tax Ordinance, 2001—Oil and Gas Regulatory Authority was not registered under the Companies Ordinance, 1984 yet it fell within the definition of a “company” as contained in section 80 of the Income Tax Ordinance, 2001—Oil and Gas Regulatory Authority was a body corporate having the status of “public company”, its claim of exemption from tax was not maintained by the Appellate Tribunal.

2010  PTD  355     INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN

 

Ss. 18 & 40—Income from business—Deductions in computing income chargeable under the head “income from other sources”—Income of Oil and Gas Regulatory Authority was income from business and not income from other sources—Said Authority was entitled to claim all deductions admissible against income front business—Nature of such income was similar to the income of consultancy companies and professional consultants—If their income was assessed as business income, income of Oil and Gas Regulatory Authority was also assessable as income from business—Oil and Gas Regulatory Authority’s income was assessable as “business income” in the light of provisions of section 18 of the Income Tax Ordinance, 2001 and said authority was entitled to claim all expenses/deductions admissible under the law against income from business.