| Case ID |
e1d9b5b1-4582-48fe-a94b-53786ab9b0b0 |
| Body |
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| Case Number |
Constitutional Petitions Nos.557 of 1992, 999, 100 |
| Decision Date |
Jun 13, 1997 |
| Hearing Date |
May 19, 1997 |
| Decision |
The Sindh High Court ruled on the constitutional validity of amendments made to the Income Tax Ordinance through the Finance Acts of 1991 and 1992. The court found that the provisions allowing for presumptive taxation based on gross receipts or turnover were not in line with the definition of income as understood in common parlance and legal interpretation. The judges highlighted that the concept of income must involve some characteristic of profit or gain, and that merely deeming certain amounts to be income did not suffice for taxation purposes. The court emphasized the need for any tax legislation to adhere to constitutional mandates and principles of equality under the law. The provisions in question were deemed ultra vires as they exceeded the legislative authority of the Federal Legislature and violated the fundamental rights of the petitioners, leading to an unjust taxation framework that could impose tax even in cases of loss. |
| Summary |
This case revolves around the constitutional challenges against amendments to the Income Tax Ordinance of 1979, specifically sections 80-C, 80-CC, and 80-D introduced by the Finance Acts of 1991 and 1992. Petitioners argued that these amendments misdefined income and imposed taxes on gross receipts rather than actual income, leading to potential discrimination and violation of fundamental rights. The Sindh High Court, presided over by Justices WAJIHUDDIN AHMED, MAMOON KAZI, and HUSSAIN ADIL KHATRI, scrutinized the definitions and legislative competencies, ultimately ruling that the amendments were unconstitutional. The decision reaffirmed the principles of fair taxation and the need for legislative definitions to align with common understandings of income, reinforcing the protection of citizens' rights against arbitrary tax laws. The case highlights critical issues of tax law, constitutional rights, and the balance of legislative power in Pakistan. |
| Court |
Sindh High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
PAKISTAN BURMAH SHELL LIMITED
|
| Judges |
WAJIHUDDIN AHMED,
MAMOON KAZI,
HUSSAIN ADIL KHATRI
|
| Lawyers |
Muhammad Ali Sayeed,
Iqbal Naeem Pasha,
Rehan Hassan Naqvi,
Mansoor Ahmed Khan,
Iqbal Kazi,
Khalilur Rehman,
Ali Akbar,
Akhtar Ali Mehmood,
A. Aziz,
Mansoorul Arfin,
Riaz Hussain Baloch,
Liaquat Merchant,
Khalid Anwar,
Iqbal Salman Pasha,
Muhammad Farid,
Nasim Ahmed Khan,
Shams-ud-Din Khalid,
Fazle Ghani Khan,
Sadiq Khan,
Hyder Raza Naqvi,
Mrs. Majida Razvi,
Ali Murtaza Hussain,
Sabih-ud-Din Ahmed,
Ismail Padhiar,
Sirajul Haque Menion,
Muhammad Naseem Khan,
M. Farogh Nasim,
Mohsin Tayyeb Ali,
Tariq Jawaid,
Umer A. Bandial,
M. Athar Saeed,
Muqtada Karim,
Shaikh Abdul Aziz,
M. Azam Khan,
Muhammad Mazharul Hassan,
Akbar Saad,
Saleem-ud-Din,
Irfan Saadiq Khan,
Naimtoolah Khan,
Sultan M. Tanoli,
Salim-ud-Din Ahmed,
M. Muzaffarul Haq,
Abdul Karim Mangrani,
Mazhar Jafari,
M. Ashraf Malik,
M. Mazharul Hassan,
Fasih-ud-Din Ahmed,
Shahanshah Hussain,
S. Nasir H. Zaidi,
Said-ud-Din Ahmed,
Munirur Rehman,
Jawaid Ahmed Siddiqui,
S. Rehamtoola Qadri,
S. Musawat Ali,
M. Aziz Malik,
M. Akmal Wasim,
H.A. Jafri,
Irfan Saadat Khan,
Bashir A. Shaikh,
M.A. Essani,
S. Ishtiaq Ali
|
| Petitioners |
another,
PAKISTAN BURMAH SHELL LIMITED
|
| Respondents |
3 others,
FEDERATION OF PAKISTAN through the Secretary, Ministry of Finance, Government of Pakistan, Islamabad
|
| Citations |
1998 SLD 522 = 1998 PTD 1804
|
| Other Citations |
Aisha Spinning Mills Ltd. v. Federation of Pakistan 1995 PTD 493,
Law of the Constitution by Dicey,
Darvesh M. Arbey v. Federation of Pakistan PLD 1980 Lah. 206,
Fauji Foundation v. Shamimur Rehman PLD 1983 SC 457
|
| Laws Involved |
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973
|
| Sections |
2,
2(24),
80C,
80CC,
80D,
199,
73
|