| Case ID |
1f3f8c9d-8cc1-4a3f-bfc2-47f1f816800f |
| Body |
View case body. Login to View |
| Case Number |
D-2083 of 2006 |
| Decision Date |
Sep 09, 2013 |
| Hearing Date |
Aug 16, 2013 |
| Decision |
The Sindh High Court ruled in favor of the petitioners, declaring that the withdrawal of tax exemption for the property used by the Rafia Choudhry Memorial Trust was illegal. The court emphasized that the petitioners had a vested right in the exemption based on the past approvals and remissions granted by the Cantonment Board. The court underscored that the retrospective demand for property tax amounted to reopening past transactions affecting vested rights, which is not permissible under the law. The court also noted that no sufficient evidence was provided to show that the trust was deriving reasonable income from the property that would disqualify it from exemption. As a result, the petition was accepted, and the respondents were restrained from recovering the previously exempted tax amount. |
| Summary |
In the case of Rishad Choudri and others vs. Cantonment Board, Karachi, the Sindh High Court dealt with the issue of tax exemption under the Cantonments Act, 1924. The petitioners, trustees of the Rafia Choudhry Memorial Trust, sought to challenge the withdrawal of their property tax exemption, which was granted for charitable purposes. The court examined the legal principles surrounding tax exemptions and the concept of vested rights. The ruling highlighted the importance of maintaining the integrity of prior exemptions granted to charitable organizations, stating that the retrospective demand for taxes was not supported by law. This case serves as a significant reference for issues related to tax exemptions, charitable trusts, and the rights of organizations under the Cantonments Act. It reinforces the principle that once an exemption is granted, it should not be revoked without substantial justification, thereby protecting the interests of charitable entities. Keywords: tax exemption, charitable trust, Cantonments Act, vested rights, Sindh High Court. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
MUSHIR ALAM, C.J.,
SYED MUHAMMAD FAROOQ SHAH, J
|
| Lawyers |
Not available
|
| Petitioners |
RISHAD CHOUDRI and others
|
| Respondents |
CANTONMENT BOARD, KARACHI through Chief Executive and others
|
| Citations |
2014 SLD 1589,
2014 PTD 136
|
| Other Citations |
Shah Nawaz v. Government of Pakistan 2011 PTD 1558,
State Bank of Pakistan v. The Director, Military Lands and Cantonments, Rawalpindi and others PLD 1990 SC 827,
Chief Administrator of Auqaf, Government of Punjab, Auqaf Department and another v. Cantonment Board, Bahawalpur through Officer Commanding and 2 others 2001 MLD 1660,
Shagufta Begum v. The Income Tax Officer, Circle-XI, Zone-B, Lahore PLD 1989 SC 360
|
| Laws Involved |
Cantonments Act, 1924,
Constitution of Pakistan, 1973
|
| Sections |
99(2)(b),
77,
259,
199
|