LEGAL SHORTHAND PASSAGE FROM SINDH HIGH COURT JUDGMENT DATED 24.07.2020 Part-VII
Total Words= 355 Dated: /12/2020 @PSTC Academy, Peshawar
Prepared by: M Junaid Khan, SS Stenographer, Civil Secretariat, KP Peshawar.
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PASSAGE ENGLISH
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However, it is pertinent to note that under Section 12 of
the Income Tax Ordinance, 2001, the legislature, while bringing various type
of amounts including pay, wages and other remuneration etc. provided to an
employee, within the definition of the term salary, under sub-section (c) of
sub-section (2) of Section 12 of the Income Tax Ordinance, 2001, any
allowance solely expended in the performance of the employee’s duties of
employment, has been excluded from the purview of definition of salary. In
other words, whatever amount of remuneration, pay, wages, bonus, commission,
fee, gratuity and allowances as detailed in Section 12 of the Income Tax
Ordinance, 2001 by an employee are treated as part of Salary chargeable to
tax, unless exempted from payment of tax as per Second Schedule to the Income
Tax Ordinance, 2001.
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2. However, in the instant case, the issue does not relate to the claim of exemption from payment of tax under the Second Schedule to the Income Tax Ordinance, 2001, for the reason that according to petitioners, the amount of judicial allowance and
.special judicial allowance received by the petitioners towards performance of their judicial services and expended in the performance of duties of employment, is not part of taxable income under the head salary in view of exclusion provided in terms of sub-section (c) of sub-section (2) of Section 12 of the Income Tax Ordinance, 2001. Intention of the legislature, while providing exclusion of such allowances from the charge of taxation seems clear from the plain language of the law, whereas, an incentive has been given to the Members of the establishment of Sindh High Court as well as to the Members of the Establishment of sub-ordinate judiciary of the Province of Sindh, towards performance of their specialized judicial functions with complete sense of devotion and responsibility. Admittedly, similar treatment in respect of judicial allowance and special judicial allowance is already being given to the Members of the establishment of the Lahore High Court and the Peshawar High Court as well as Members of sub-ordinate judiciary in both the Provinces, which facts has not been disputed by the respondents.
