| Case ID |
ecc3a2ba-ee3a-4494-8117-68382558b15f |
| Body |
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| Case Number |
Civil Appeal No. 1890 of 2002 |
| Decision Date |
Mar 16, 2015 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the appeal, concluding that the property in question, owned by the Evacuee Trust Property Board and leased to the respondent, is exempt from property tax under the Urban Immovable Property Tax Act. The Court determined that the lease was not a lease in perpetuity, as it had a fixed term of 30 years with provisions for reversion of the property and superstructure back to the Board upon expiry. The Court emphasized the importance of interpreting fiscal statutes strictly and in favor of the taxpayer, leading to the conclusion that the property did not fall within the taxable category as defined by law. |
| Summary |
This case revolves around the interpretation of property tax exemptions under the West Pakistan Urban Immovable Property Tax Act, 1958, specifically concerning leased properties owned by governmental bodies. The Supreme Court of Pakistan had to determine whether a property leased out by the Evacuee Trust Property Board to Muhammad Shafi was exempt from taxation due to its ownership status. The Court analyzed the lease agreement, relevant laws, and prior precedents to conclude that the lease was not perpetual and thus, the property was exempt from tax. This ruling is significant in understanding tax liabilities for government-owned properties and clarifies the definition of leases in perpetuity in the context of Pakistani law. The decision reinforces the principle that tax laws must be interpreted in favor of the taxpayer, ensuring that governmental entities cannot impose undue tax burdens on properties that fall under specific exemptions. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Evacuee Trust Property Board
|
| Judges |
MIAN SAQIB NISAR,
SH. AZMAT SAEED,
MUSHIR ALAM
|
| Lawyers |
Qasim Mirjatt, Addl. A.G. Sindh,
Mr. M. Bilal, Sr. ASC,
Mian Qamar-uz-Zaman, ASC,
Raja Abdul Ghafoor, AOR
|
| Petitioners |
GOVERNMENT OF SINDH THROUGH SECRETARY & DIRECTOR GENERAL, EXCISE & TAXATION
|
| Respondents |
MUHAMMAD SHAFI,
Mian Qamar-uz-Zaman,
Raja Abdul Ghafoor
|
| Citations |
2015 SLD 2060,
(2015) 112 TAX 57
|
| Other Citations |
Mehran Associates Ltd. v. Commissioner of Income Tax, Karachi (1992) 66 Tax 246(S.C.Pak)
|
| Laws Involved |
West Pakistan Urban Immovable Property Tax Act, 1958,
Transfer of Property Act, 1882,
Registration Act, 1908,
Constitution of Pakistan, 1973
|
| Sections |
3,
4,
4(a),
2(e),
3(3),
117,
107,
105,
17,
17(d),
49,
165
|