| Case ID |
301613d9-6ff8-4b37-96dc-0f79c7d2ae44 |
| Body |
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| Case Number |
Writ Petition No. 1881-P of 2019 |
| Decision Date |
Apr 03, 2019 |
| Hearing Date |
Apr 02, 2019 |
| Decision |
The Peshawar High Court held that the petitioners, being industrial units operating in the erstwhile Federally Administered Tribal Areas (FATA), were not liable to pay any tax that was not applicable prior to the Constitution (Twenty-fifth Amendment) Act, 2018. The court declared that the collection of advance tax on the electricity bills of the petitioners' industrial units was illegal and that the petitioners were not required to obtain any Exemption Certificate as required under section 159 of the Income Tax Ordinance, 2001. The court emphasized that the exemptions provided under the Income Tax Ordinance were meant to grant absolute immunity rather than mere concessions. Therefore, the constitutional petitions were disposed of accordingly. |
| Summary |
In the case of Messrs Abid Foundry through Authorized Representative and Another vs Pakistan through Federal Secretary, Finance and Revenue Division, the Peshawar High Court examined the applicability of tax laws to industrial units in the erstwhile Federally Administered Tribal Areas (FATA) following the constitutional amendment that merged FATA into Khyber Pakhtunkhwa. The court ruled that the petitioners were exempt from taxes that were not applicable before the amendment and that the collection of advance tax on utility bills was illegal. The decision highlighted the importance of understanding the legislative intent behind tax exemptions and the distinction between exemption from payment and exemption from applicability. The ruling has significant implications for businesses operating in the newly merged districts as it reinforces their tax exemption status for a transitional period. Key trending keywords include 'income tax exemption', 'FATA tax regime', 'Peshawar High Court decision', and 'constitutional amendment impact'. |
| Court |
Peshawar High Court
|
| Entities Involved |
Federal Government,
Federal Board of Revenue,
Messrs Abid Foundry
|
| Judges |
Rooh-ul-Amin Khan,
Muhammad Nasir Mehfooz
|
| Lawyers |
Shumail Ahmad Butt,
Rehman Ullah,
Ishtiaq Ahmad
|
| Petitioners |
Messrs Abid Foundry through Authorized Representative and Another
|
| Respondents |
Pakistan through Federal Secretary, Finance and Revenue Division, Islamabad and 5 Others
|
| Citations |
2019 SLD 1849,
2019 PTD 1652,
(2019) 120 TAX 340
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
53,
100C,
159,
Second Schedule,
246
|