| Case ID |
008a27fa-f5ae-46a0-8095-e94f7dd13d0c |
| Body |
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| Case Number |
Constitutional Petition No.364 of 1984 |
| Decision Date |
Nov 03, 1988 |
| Hearing Date |
Oct 04, 1988 |
| Decision |
The petitioner challenged the validity of the Wealth Tax Act, 1963, arguing that the Parliament lacked the authority to legislate on wealth tax as defined under the Act. The petitioner's counsel contended that the wealth tax imposed does not align with the 'capital value of the assets' as defined in the Federal Legislative List. However, the court found that the Act is validly enacted under the legislative powers granted to the Parliament. The court held that the definitions of 'wealth' and 'net wealth' in the Act are consistent with the legislative intent and constitutional provisions. The petition was ultimately dismissed, affirming the validity of the Wealth Tax Act and the authority of the Parliament to impose such a tax. |
| Summary |
This case involves a constitutional challenge against the Wealth Tax Act of 1963, where the petitioner contended that the tax imposed does not fall under the legislative competence of the Parliament as it pertains to the capital value of assets. The Sindh High Court analyzed the definitions of 'wealth' and 'net wealth', concluding that they are congruent with the legislative framework established by the Constitution of Pakistan. The court emphasized the exclusive power of Parliament to legislate on matters in the Federal Legislative List, which includes taxes on the capital value of assets. This ruling underscores the importance of legislative authority in taxation matters and affirms the validity of wealth taxation as a legitimate exercise of power by the Parliament. The decision reinforces the legal framework surrounding wealth taxation in Pakistan, ensuring compliance with constitutional mandates while balancing the rights of the taxpayer against the overarching authority of the state. |
| Court |
Sindh High Court
|
| Entities Involved |
|
| Judges |
SAEEDUZZAMAN SIDDIQUI, J
|
| Lawyers |
|
| Petitioners |
Haji MUHAMMAD SHAFI,
|
| Respondents |
WEALTH TAX OFFICER, CIRCLE IV, KARACHI,
|
| Citations |
1989 SLD 968,
1989 PTD 488,
(1989) 59 TAX 42
|
| Other Citations |
Union of India v. Harbbajan Singh (1972) I T R 582
|
| Laws Involved |
Constitution of Pakistan, 1973,
Wealth Tax Act, (XV of 1963)
|
| Sections |
142,
3,
2(e),
2(m)
|