| Case ID |
2bd14c04-34ee-4f7b-8e4a-f1b07fa1580a |
| Body |
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| Case Number |
Civil Appeals Nos. 74 and 75 of 1999 |
| Decision Date |
Dec 16, 1999 |
| Hearing Date |
Nov 17, 1999 |
| Decision |
The High Court's decision to accept the writ petitions filed by the respondents was set aside. The appeals were accepted, and the demand for additional advance income tax from the respondents was upheld as lawful. The court concluded that the increase in the rate of advance income tax from 3% to 5% was valid and did not violate Fundamental Right No. 14 as stipulated by the Azad Jammu and Kashmir Interim Constitution Act. The judgment emphasized that the tax demand was made under the legal framework of the Income Tax Ordinance, 1979, and Finance Act, 1995. The court ruled that the findings of the High Court were devoid of any legal substance and reaffirmed the authority of the legislature to enact retrospective fiscal laws. |
| Summary |
This case revolves around the legality of the increase in advance income tax rates from 3% to 5%, as mandated by the Finance Act of 1995, and its adaptation in Azad Kashmir. The appeals were filed against the High Court's ruling which favored the respondents, claiming the retrospective application of the tax increase violated their constitutional rights. The court found that the increase was lawful and did not infringe upon the respondents' rights. This case underscores the balance between legislative authority and individual rights under fiscal laws, particularly in the context of retrospective taxation. Key terms include 'Income Tax Ordinance', 'Fiscal Law', 'Advance Tax', and 'Constitutional Rights', which are crucial for understanding the implications of this ruling in tax law and constitutional law discussions. |
| Court |
High Court (AJ&K)
|
| Entities Involved |
Income Tax Department,
Azad Jammu and Kashmir Council
|
| Judges |
Sardar Said Muhammad Khan, GJ.,
Basharat Ahmad Shaikh, J
|
| Lawyers |
Ch. Muhammad Afzal, Advocate,
Ghulam Mustafa Mughal, Advocate,
Farooq Hussain Kashmiri, Advocate,
Noorullah Qureshi, Advocate
|
| Petitioners |
ASIAN D ENTERPRISES through Eijaz Qureshi Managing Director,
5 others Messrs CADE CREETS ASSOCIATES through Managing Partner, Diwan Ali Khan Chughtai
|
| Respondents |
another,
COMMISSIONER OF Income Tax (AJ&K COUNCIL) MUZAFFARABAD
|
| Citations |
2000 SLD 295 = (2000) 81 TAX 371
|
| Other Citations |
M/s. Spintex Limited, Mirpur v. Income tax Officer Government of AJ&K, Mirpur (1998) 78 Tax 143 (S.C.A.J.K.) = 1998 PTD 2567,
Khyberbari Tea Co. Ltd. v. State of Assam (AIR 1964 SC 925),
Novelty Enterprises Limited v. Deputy Collector, Excise and Taxation/Sales Tax officer, Mirpur 1993 CLC 1165,
Government of Azad Jammu and Kashmir v. M/s. Kashmir Tobacco industries Ltd. (1992 SCR 20),
M/s. Chhotabhai Jethabhai Patel v. Union of India (AIR 1962 SC 1006),
M/s. Yaseen Sons v. Federation of Pakistan (PTCL 1990 CL 438),
Azad Government of the State of Jammu and Kashmir v. Syed Muhammad Akbar Shah 1996 PLC (C.S.) 838,
Messrs Flying Board and Paper Products v. Central Board of Revenue, Government of Pakistan, Islamabad (1996) 74 Tax 189 (H. C. LHR)=(PLD 1996 Lah. 718),
Abdul Sattar Noor Muhammad & Co. v. Government of Pakistan (1999) 80 Tax 49 (H.C. Qta.) =( 1999 SCMR 2345),
Al-Samres Enterprise v. The Federation of Pakistan (1986 SCMR 1917),
Government of Pakistan v. Messrs Pesticide Air Services Ltd. (PLD 1993 SC 132),
Molasses Trading & Export (Pvt.) Limited v. Federation of Pakistan (1993 SCMR 1905),
Federation of Pakistan v. Punjab Steel Limited (1993 SCMR 2267)
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
50,
50(4),
First Schedule
|