| Case ID |
42c4dcc8-cb9b-4108-acaf-fc98fe2bff97 |
| Body |
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| Case Number |
C.P. No.8569 of 2018 |
| Decision Date |
Feb 28, 2023 |
| Hearing Date |
Feb 14, 2023 |
| Decision |
The Lahore High Court dismissed the constitutional petition as the petitioners failed to demonstrate any vested right to perpetuate the exemption from taxation on inter-corporate dividends after its conscious withdrawal by the Parliament. The court emphasized that the benefit of group relief was not irrevocably entwined with the provisions of the Income Tax Ordinance and highlighted the prerogative of Parliament to confer and withdraw fiscal benefits in the public interest. The court also noted that the petitioners did not substantiate their claims of discrimination or vested rights, leading to the dismissal of the petitions. |
| Summary |
This case revolves around the interpretation and application of the Income Tax Ordinance, 2001, specifically sections 59AA and 59B, regarding exemptions from taxation on inter-corporate dividends. The Lahore High Court was tasked with determining whether the petitioners had a vested right to these exemptions after their removal from the law. The court ruled that the petitioners could not claim indefinite benefits once the exemptions were withdrawn by the Parliament. The decision emphasized legislative authority in fiscal matters and clarified that prior benefits do not create perpetual rights. This case is significant for tax law practitioners and corporate entities navigating fiscal policies in Pakistan. |
| Court |
Lahore High Court, Rawalpindi Bench
|
| Entities Involved |
FEDERATION OF PAKISTAN,
INTERNATIONAL BRANDS LIMITED
|
| Judges |
MUHAMMAD JUNAID GHAFFAR,
AGHA FAISAL
|
| Lawyers |
Ovais Ali Shah,
Ameer Bakhsh Metlo,
S. Ahsan Ali Shah,
Huma Sodher,
Bushra Zia,
Ali Tahir Soomro,
Ayaz Sarwar Jamali,
Arshad Ali Tunio,
Sajjad Ali Solangi,
Uzair Qadir Shoro,
Farogh Naseem,
Salman Aziz,
Muhammad Aqeel Qureshi,
Rashid Anwar,
Ghulam Muhammad,
Marium Riaz,
Fizzah Bucha,
Adil Saeed,
Zain Mustafa Soomro,
Kashif Nazeer,
Jam Zeeshan,
Khalid Javed Khan,
Umer Akhund,
Umer Ilyas Khan,
Ameer Haider Khan,
Sami-ur-Rehman Khan,
Fahad Khan,
Ahmed Hussain,
Imran Iqbal Khan,
Faiz Durrani,
Saima Anjum,
Shahid Ali Qureshi,
Rana Sakhawat Ali,
Saad Shafiq Siddiqui,
Tauqeer Ahmed Seehar,
Hafeezullah,
Fahim Ali,
Imtiaz Mansoor Solangi,
Manzar Hussain Memon,
Irfan Mir Halepota,
Faheem Ali,
Farha Naz Qazi,
Khurram Shehzad,
Nadir Hussain Tunio,
Zubair Qureshi,
Tahir Khalil,
Barkat Ali Metlo,
Imran Ali Metlo,
Fayaz Ali Metlo,
Muhammad Idrees Rahimoon,
Preetam Das,
Abdul Mujeeb Zeeshan,
M. Taseer Khan
|
| Petitioners |
INTERNATIONAL BRANDS LIMITED,
Y.B Holding (Pvt.) Ltd.,
Gul Ahmed Holdings (Pvt.) Ltd.,
Searle Pharmaceutical (Pvt.) Ltd.,
Lucky Holding Ltd.,
DFL Corp (Pvt.) Ltd.,
Engro Corp Ltd.
|
| Respondents |
FEDERATION OF PAKISTAN THROUGH SECRETARY REVENUE EX-OFFICIO CHAIRMAN, FBR
|
| Citations |
2024 SLD 5,
2024 PTD 49
|
| Other Citations |
Metco Shipbreakers v. Federation of Pakistan 1996 MLD 144,
Syed Azam Shah v. Federation of Pakistan 2022 SCMR 1691,
CIR Peshawar v. Tariq Mehmood 2021 SCMR 440,
Fawad Ahmad Mukhtar v. CIR 2022 SCMR 454,
Nagina Silk Mills v. ITO PLD 1963 SC 322,
East Pakistan v. Sharafatullah PLD 1970 SC 514,
CIT v. EFU Insurance 1982 PLD SC 247,
G H Shah v. Chief Land Commissioner 1983 CLC 1585,
Al Samrez Enterprises v. Federation of Pakistan 1986 SCMR 1917,
WAPDA v. Capt. Nazir 1986 SCMR 96,
Chief Land Commissioner v. G H Shah 1988 SCMR 715,
Molasses Trading and Export v. Federation of Pakistan 1993 SCMR 1905,
Muhammad Hussain v. Muhammad 2000 SCMR 367,
Shahnawaz v. Federation of Pakistan 2011 PTD 1558,
Zila Council Jhelum v. PTC PLD 2016 SC 398,
Al Tech Engineers v. Federation of Pakistan 2017 SCMR 673,
Super Engineering v. CIR 2019 SCMR 1111,
H M Extraction v. FBR 2019 SCMR 1081,
Anwar Yahya v. Federation of Pakistan 2017 PTD 1069
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
59AA,
59B
|