| Case ID |
15665881-cc5c-4e3d-a6ce-4ea4bc73e123 |
| Body |
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| Case Number |
C.P.L.As. Nos.1616 and 1617 of 2003 |
| Decision Date |
Dec 14, 2005 |
| Hearing Date |
Dec 14, 2005 |
| Decision |
The Supreme Court of Pakistan ruled in favor of the petitioners, Mortar Investments Intl. Limited and ICI Pakistan Limited, allowing their petitions for leave to appeal against the judgment of the Sindh High Court. The Court found that the High Court had failed to properly consider the claims made under the Income Tax Ordinance, particularly regarding the discriminatory treatment of the petitioners compared to another foreign company that had received tax exemptions. The Court emphasized that the issues raised were no longer mere questions of fact suitable for resolution by lower tax authorities, but rather legal questions needing judicial determination. The previous judgments were set aside, and the constitutional petitions were directed to be decided by the High Court within a specified time frame. |
| Summary |
In the case of Mortar Investments Intl. Limited vs. Federation of Pakistan, the Supreme Court of Pakistan addressed significant issues regarding tax exemptions under the Income Tax Ordinance, 1979. The petitioners contended that their applications for tax relief were unjustly denied while similar requests from other companies were granted, highlighting discrimination in tax treatment. The Court scrutinized the interpretation of 'industrial investment' as it relates to tax exemptions, particularly concerning loans used for working capital. The ruling underscored the importance of fair treatment in tax policy to foster foreign investment, and it reiterated that the Deputy Commissioner of Income Tax could not independently decide matters that had already been addressed by higher authorities. The decision reinforces principles of equity in tax law, potentially impacting future cases involving foreign investments in Pakistan. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
FEDERATION OF PAKISTAN,
MORTAR INVESTMENTS INTL. LIMITED,
ICI PAKISTAN LIMITED
|
| Judges |
IFTIKHAR MUHAMMAD CHAUDHRY, C.J.,
M. JAVED BUTTAR,
TASSADUQ HUSSAIN JILLANI, J.
|
| Lawyers |
Syed Sharif-ud-Din Pirzada, Senior Advocate Supreme Court,
Danish Zubairi,
Mehr Khan Malik,
Raja Muhammad Irshad, D.A.G.,
Raja Abdul Ghafoor
|
| Petitioners |
MORTAR INVESTMENTS INTL. LIMITED,
ICI PAKISTAN LIMITED
|
| Respondents |
FEDERATION OF PAKISTAN,
others
|
| Citations |
2006 SLD 163,
2006 SCMR 859
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973
|
| Sections |
Second Schedule, Cl.77,
Second Schedule, Cl.77A,
185(3)
|