| Case ID |
0aa6f1fa-895b-4f52-bc1f-16f83531cc89 |
| Body |
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| Case Number |
Writ Petition No. 213 of 2023 |
| Decision Date |
Feb 19, 2024 |
| Hearing Date |
Jan 15, 2024 |
| Decision |
The Islamabad High Court ruled that Section 7E of the Income Tax Ordinance, 2001 is ultra vires the Constitution of Pakistan, 1973. The court found that the provision imposed a tax on deemed income derived from capital assets, which was effectively a tax on immovable property, beyond the competence of the Federal Legislature. The court noted that such taxation was discriminatory and confiscatory, violating constitutional rights. The court held that if one High Court strikes down a law, the judgment is universal and affects the law in all jurisdictions. The court ultimately struck down Section 7E, declaring it void ab initio. |
| Summary |
This case involves a challenge to Section 7E of the Income Tax Ordinance, 2001, which was inserted via the Finance Act, 2022. Petitioners argued that the section was beyond the legislative competence of the Federal Government, asserting that it violated constitutional rights by levying tax on deemed income from immovable property. The court examined the nature of the tax, determining it to be confiscatory and discriminatory in violation of Articles 23 and 24 of the Constitution. The ruling emphasized the principle that taxation must be within the bounds of the law and must not infringe upon fundamental rights. The judgment clarifies the limits of legislative power in imposing taxes and the importance of protecting citizens' rights against unreasonable taxation. The case underscores the balance between state power and individual rights, reinforcing the judicial principle that laws must serve the public interest without being oppressive. The decision is significant for taxpayers and legal practitioners as it sets a precedent regarding the constitutionality of taxation laws and the extent of legislative authority. Keywords: Income Tax Ordinance, constitutional rights, legislative competence, Islamabad High Court, taxation law. |
| Court |
Islamabad High Court
|
| Entities Involved |
Not available
|
| Judges |
Aamer Farooq, Chief Justice
|
| Lawyers |
Mr. Faisal Rasheed Ghouri,
Mr. Khalil ur Rehman,
Hafiz Muhammad Idris,
Syed Farid Ahmed Bukhari,
Syed Ishfaq Hussain Naqvi,
Mirza Saqib Siddique,
Malik Nasir Abbas Awan,
Mr. Muhammad Musawar Gill,
Barrister Atif Rahim Burki,
Mian Haseeb Ali Bhatti,
Mr. Usman Kiyani,
Mr. Muhammad Aslam Hayat,
Mr. Muhammad Naeem Siddique Bhatti,
Mr. Asif Farid,
Mr. Sajid Naseem,
Mr. Usman Ahmed Ranjha,
Ms. Sabila Daraz Khan,
Syed Ali Murtaza Abbas,
Mr. Waqar Javed,
Ms. Fatima,
Ms. Aiema Asrar,
Mr. Asif Saeed Mughal,
Mr. Faisal Jaffar Khan,
Mr. Imran Ul Haq,
Ms. Shazia Nadeem Malik,
Mr. Hamid Jalal,
Mr. Ejaz Hussain Rathore,
Mr. Ghulam Qasim Bhatti,
Barrister Sohail Nawaz
|
| Petitioners |
Hafiz Muhammad Idris,
Syed Farid Ahmed Bukhari,
Mr. Usman Kiyani,
Mian Haseeb Ali Bhatti,
Mr. Muhammad Aslam Hayat,
Mr. Muhammad Naeem Siddique Bhatti,
Mr. Asif Farid,
Mr. Sajid Naseem,
Mr. Usman Ahmed Ranjha,
Ms. Sabila Daraz Khan,
Syed Ali Murtaza Abbas,
Mirza Saqib Siddique,
Mr. Waqar Javed,
Ms. Fatima,
Ms. Aiema Asrar,
Malik Nasir Abbas Awan,
Mr. Asif Saeed Mughal,
Mr. Muhammad Musawar Gill,
Mr. Khalil ur Rehman,
Mr. Faisal Rasheed Ghouri,
Mr. Faisal Jaffar Khan,
Mr. Imran Ul Haq,
Ms. Shazia Nadeem Malik,
Mr. Hamid Jalal
|
| Respondents |
Federation of Pakistan
|
| Citations |
2024 SLD 2895,
(2024) 129 TAX 329
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
2(29),
7E,
23,
24,
25,
199
|