COMMISSIONER OF INCOME TAX, COMPANIES ZONE-II, LAHORE VS Messrs IQBAL AVENUES COOPERATIVE HOUSING SOCIETY LTD., LAHORE, 2005 PTD-LAHORE-HIGH-COURT-LAHORE 2343 (2005)

Income Tax Act (XXXI of 1979)---

---------Ss. 2(16) & 80-B---Cooperative Society registered under the

Cooperative Societies Act, 1925 is not a "Company" within its meaning as defined by Income Tax Ordinance, 1979, S.2(16).

The Commissioner of Income Tax/Wealth Tax v. Messrs Engineering Cooperative Housing Society Lahore 2000 PTD 3388; National Cooperative Supply Corporation Ltd. Federation of Pakistan and 3 others 2000 PTD 811; E.M.E. Cooperative Housing Society v. Federation of Pakistan and 4 others. 2002 PTD 466 and Commissioner of Income-tax v. Messrs Spring Field Secondary School, Karachi 2003 PTD 1264 ref.

Rana Munir Hussain for Petitioner.

Shahid Jamil Khan for Respondent.

ORDER

This PTR arises from the decision of the ITAT, whereby, the contention of the department that the respondent/Cooperative Society was not an Association of Persons' (AOP) but a "company" as defined by section 2(16) of the Income Tax Ordinance, 1979, was repelled.

2. The question of law in pith and substance attempted to be raised by the department requiring the expression of opinion by this Court is whether this Cooperation Society registered under the Cooperative Societies Act, 1925 is in fact a company for purposes of the Income Tax Act, 1979, more particularly, with reference to the applicability or otherwise of section 80-B of the Ordinance. It is contended on behalf of the department that "company" for purposes of Income Tax Ordinance is not limited to companies as defined by the Companies Ordinance, 1984, but also include a body corporate formed by or under the law for the time being in force. In this behalf reliance has been placed on section 2(16)(b) of the Income Tax Ordinance, 1979.

3. That a legally identical question came up for consideration/ determination/expression of opinion before a Division Bench of this Court in the case reported as (2000 PTD 3388) The Commissioner of Income Tax/Wealth Tax v. Messrs Engineering Cooperative, Housing Society Lahore and it was held that Cooperative Society is not a "Company" as defined by section 2(16) of the ITO.

4. The afore referred judgment was subsequently followed by two more judgments handed down by single Benches of this Court reported as (2000 PTD 811) National Cooperative Supply Corporation Ltd. Federation of Pakistan and 3 others and (2002 PTD 466) E.M.E. Cooperative Housing Society v. Federation of Pakistan and 4 others. The High Court of Sindh in the case reported as 2003 PTD 1264 Commissioner of Income Tax v. Messrs Spring Field Secondary School Karachi has also followed the aforesaid judgments of this Court.

5. A valiant attempt was made at the Bar by the learned counsel for the department to try and distinguish the aforesaid judgments from the facts and circumstances of this case and to persuade us to take a different view. A question of law had been posed for expression of opinion in the case reported as 2000 PTD 3388 the Commissioner of Income Tax/ Wealth Tax v. Messrs Engineering Cooperative Housing Society Lahore which was answered. Nothing stated at the bar has persuaded us to take a contrary view. In, this view of the matter and in respectful agreement with the DB judgment of this Court, supra, we hold that a Cooperative A Society registered under the Cooperative Societies Act, 1925, is not a company within the meaning of and as defined by Income Tax Ordinance, 1979.

6. In the light of the above discussion, this PTR stands disposed of.

M.B.A./C-95/LOrder accordingly.