| Case ID |
d3397391-1264-4a74-a979-92b8fed60e2b |
| Body |
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| Case Number |
Writ Petitions Nos.99, 115, 102, 96, 95 of 1994, 8 |
| Decision Date |
Sep 16, 1997 |
| Hearing Date |
|
| Decision |
The court upheld the provisions of section 80-D of the Income Tax Ordinance, 1979, ruling that the imposition of turnover tax was lawful and not in violation of constitutional provisions. The court found that the provisions do not discriminate against any class of taxpayers and that the tax does not impose undue restrictions on business activities. The court clarified that the tax is not considered interest or ribba under Islamic law and emphasized the necessity of taxation for state functions. The judgment reaffirmed the legislative authority of the AJ&K Council in matters of taxation and addressed various legal challenges raised by the petitioners regarding the constitutional validity and implications of the law. |
| Summary |
This case revolves around the legal challenge to the provisions of section 80-D of the Income Tax Ordinance, 1979, which introduced a turnover tax in Azad Jammu and Kashmir. The petitioners contended that these provisions were unconstitutional, discriminatory, and violative of Islamic teachings. They argued that the tax imposed restrictions on their business status and was without lawful authority. The High Court examined the constitutional framework governing taxation in AJ&K and determined that the imposition of taxes is a necessary function of the state to provide public services and ensure governance. The court ruled that the provisions of section 80-D do not infringe upon fundamental rights and are not ultra vires the AJ&K Interim Constitution Act. The judgment highlighted the importance of taxation as a sovereign right of the state and rejected claims that the tax constituted ribba, thereby aligning the ruling with Islamic jurisprudence. The decision serves as a precedent for future taxation matters in AJ&K and clarifies the extent of legislative powers of the AJ&K Council. Keywords such as 'Income Tax Ordinance', 'turnover tax', 'AJ&K Council', 'fundamental rights', and 'Islamic law' are pertinent for understanding and researching this case. |
| Court |
High Court (AJ&K)
|
| Entities Involved |
|
| Judges |
KHAWAJA MUHAMMAD SAEED, CHIEF, JUSTICE,
CH. MUHAMMAD TAJ, JUSTICE,
MUHAMMAD SIDDIQUE FAROOQI, JUSTICE
|
| Lawyers |
Haji Muhammad Afzal (except in Writ Petition No. 10 of 1993),
Zahid Hussain (in Writ Petition No. 10 of 1993),
Bilal Ahmed (in all the Petitions except in Petition No. 10 of 1993),
Abdul Majeed Mallick (in Writ Petition No. 10 of 1993)
|
| Petitioners |
MESSRS KHAWAJA TEXTILE MILLS LTIS., KHALIQNAR BHIMBER THROUGH KHAWAJA ANEESUR REHMAN, DIRECTOR AND OTHERS
|
| Respondents |
DEPUTY COMMISSIONER INCOME TAX, MIRPUR CIRCLE, MIRPUR AND OTHERS
|
| Citations |
1998 SLD 31,
1998 PTD 245,
(1998) 77 TAX 1
|
| Other Citations |
PLD 1997 SC 582,
AIR 1961 SC 522,
PLD 1979 SC (AJ&K) 148,
PLD 1979 SC (AJ&K) 193,
PLD 1979 SC (AJ&K) 217,
1961 (41) ITR 393,
(1965) 56 ITR 141,
(1965) 56 ITR 597,
AIR 1963 Mad. 183,
PLD 1981 SC 95,
PLD 1990 SC 990,
1951 SCR 735,
AIR 1941 FC 16,
AIR 1955 SC 58,
AIR 1964 SC 922,
AIR 1968 SC 59,
AIR 1955 FC 1667,
AIR 1961 SC 1602,
AIR 1961 SC 1733,
AIR 1960 SC 457,
AIR 1957 SC 9,
AIR 1957 SC 157,
AIR 1952 SC 75,
AIR 1961 SC 552,
AIR 1967 SC 1895,
PLD 1980 SC 44,
(1989) 178 ITR 31 (AP),
PLD 1979 SC (AJ&K) 147,
PLD 1992 FSC 329
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
42,
45,
80D
|