| Case ID |
372e0ab0-13ea-4e8c-b98f-1a23e4196a50 |
| Body |
View case body. Login to View |
| Case Number |
Writ Petitions Nos. 10195 of 1991, 12254 of 1992 a |
| Decision Date |
Nov 27, 1995 |
| Hearing Date |
Nov 27, 1995 |
| Decision |
The Lahore High Court dismissed the petitions, ruling that the amendments made to the Wealth Tax Act were clarificatory and declaratory in nature. The court affirmed that the definition of ‘assets’ under the Wealth Tax Act now includes immovable properties held for the purpose of letting out or business of construction and sale. The court rejected the petitioners' claims for refunds of wealth tax, stating that the explanatory amendment had retrospective effect, and thus the petitioners remained liable for the wealth tax on their immovable properties. The court emphasized that the explanation added to the law was intended to clarify previously ambiguous provisions and should be given due effect. |
| Summary |
This case revolves around the interpretation of the Wealth Tax Act, particularly the definition of 'assets' as it relates to immovable properties owned by companies. The Lahore High Court reviewed the petitions filed by Messrs RIJAZ (PVT.) LTD. challenging the retrospective application of an amendment to the Wealth Tax Act following a Supreme Court decision. The court found that the amendment was clarificatory and thus applicable to prior tax assessments. The ruling highlights the importance of legislative clarity in tax law and the implications for companies regarding wealth tax liabilities. Keywords: Wealth Tax Act, retrospective application, immovable property, tax law interpretation. |
| Court |
Lahore High Court
|
| Entities Involved |
Messrs RIJAZ (PVT.) LTD.,
THE WEALTH TAX OFFICER, CIRCLE III, LAHORE
|
| Judges |
MALIK MUHAMMAD QAYYUM, J
|
| Lawyers |
Mian Saqib Nisar,
Muhammad Ilyas Khan
|
| Petitioners |
Messrs RIJAZ (PVT.) LTD. through Chief Executive Riaz A. Gul
|
| Respondents |
THE WEALTH TAX OFFICER, CIRCLE III, LAHORE
|
| Citations |
1996 SLD 124,
1996 PTD 489
|
| Other Citations |
B.P. Biscuit Factory Ltd., Karachi v. Wealth Tax Officer and another Civil Appeal No.K-140 of 1981
|
| Laws Involved |
Wealth Tax Act, (XV of 1963)
|
| Sections |
2,
2(e)(ii)
|