| Case ID |
0abfb1f4-36e5-43b1-a56d-be797d7a0622 |
| Body |
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| Case Number |
Civil Revision No.100 with C.M. No.138 of 2001 |
| Decision Date |
Jun 26, 2006 |
| Hearing Date |
|
| Decision |
The court ruled that all Provincial or Federal Government employees on transfer to an area where legislative authority does not extend remain under the Civil Servants Act. The Income Tax Ordinance, 1979 applies to all government salaries regardless of the place of payment. The court found that the petitioners, being government servants, are liable to pay income tax on their salaries despite being posted in areas where the ordinance has not been explicitly extended. The assessment orders issued by the Income Tax Officer for charging income tax on their salaries were deemed lawful and valid. The petition was dismissed, but the connected civil revisions were allowed, setting aside the judgments of the lower courts. |
| Summary |
In the landmark case of Employees Action Committee vs. Government of Pakistan, the Peshawar High Court addressed significant issues regarding the applicability of income tax laws to government employees serving in the Provincially or Federally Administered Tribal Areas (PATA). The court clarified that despite the Income Tax Ordinance, 1979 not being extended to PATA, all government employees are liable to pay income tax on their salaries. The ruling emphasized that the Civil Servants Act governs the terms of service for these employees, regardless of their posting location. This case is critical for understanding the tax obligations of civil servants in specialized jurisdictions and has implications for government payroll practices. The decision reinforces the principle that income derived through salary is taxable if paid by the government, irrespective of territorial jurisdiction. This ruling is essential for legal practitioners and tax professionals working with government employees, ensuring compliance with tax obligations and understanding the intersection of civil service law and taxation. |
| Court |
Peshawar High Court
|
| Entities Involved |
Not available
|
| Judges |
DOST MUHAMMAD KHAN, J
|
| Lawyers |
Said Rahman Khan for Petitioner,
Eid Muhammad Khattak for Respondents
|
| Petitioners |
EMPLOYEES ACTION COMMITTEE
|
| Respondents |
GOVERNMENT OF PAKISTAN and others
|
| Citations |
2006 SLD 269,
2006 PLC 1311,
(2007) 95 TAX 100
|
| Other Citations |
1995 PTD 350,
2001 PTCL 3701,
PLD 2003 SC 614
|
| Laws Involved |
Income Tax Ordinance, 1979,
Specific Relief Act, 1877,
Constitution of Pakistan, 1973,
North-West Frontier Province Civil Servants Act, 1973
|
| Sections |
12,
42,
247(3),
10
|