| Case ID |
edd34a81-f0e8-4a1e-a2ed-f090e3e40b20 |
| Body |
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| Case Number |
W.P. No. 228757 of 2018 |
| Decision Date |
Nov 11, 2022 |
| Hearing Date |
Nov 11, 2022 |
| Decision |
The Court held that the collection of unadjustable advance income tax from individuals not liable to pay income tax or file income tax returns is without lawful authority and unconstitutional. The petitioners challenged the amendment in Section 236D of the Income Tax Ordinance, 2001, which imposed a minimum slab for tax collection from individuals receiving services in marriage halls, regardless of their tax liability status. The Court emphasized that a tax that is confiscatory or expropriatory is impermissible under law. The ruling underscored the need for rationality in tax collection procedures and the importance of ensuring that such processes do not impose undue burdens on individuals, particularly those not liable to income tax. The decision was referred to the Attorney General and the Federal Board of Revenue for necessary amendments. |
| Summary |
In the landmark case of Rao TARIQ ISLAM vs. FEDERATION OF PAKISTAN, the Lahore High Court addressed significant issues surrounding the Income Tax Ordinance, 2001, particularly the amendment in Section 236D that mandated advance tax collection from individuals using services such as marriage halls, without regard for their tax liability. The Court ruled that this practice was unconstitutional, highlighting that taxes must not be confiscatory or expropriatory, which aligns with principles of fair taxation. This case emphasizes the need for tax laws to be reasonable and equitable, ensuring that individuals not liable for taxes are not unduly burdened. The decision reflects a broader commitment to uphold fundamental rights and maintain justice within the taxation framework, marking a critical moment in the legal interpretation of tax-related statutes in Pakistan. The outcome of this case could influence future tax legislation and its implementation, promoting a fairer tax system. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
Shahid Jamil Khan
|
| Lawyers |
Zulfiqar Ali Khan,
Shahbaz Butt,
Farhan Shahzad,
Muhammad Mohsin Virk,
Raja Hassam Kayani,
Nawab Saeed Ullah Khan,
Ibrahim Hassan,
Asad Abbas Raza,
Muhammad Usman Zia,
Muhammad Ahsan Mahmood,
Kashif Akbar Bandesha,
Usman Khalil,
Afzal Hussain,
Mirza Mubashir Baig,
Abad-ur-Rehman,
Ch. Zulfiqar Ali,
Javed Iqbal Bhatti,
Abdullah Dogar,
Shamail Arif,
Muhammad Shahid Baig,
Ahtisham-ud-Din Khan,
Muhammad Nouman Sarwar,
Farrukh Gulzar Awan,
Chaudhary Hasham Hayat Wathra,
Mian Talat Mahmood,
Sardar Azeem Afrasiab,
Wasif Javed Sipra,
Mazhar Elahi,
Muhammad Bilal Parvez
|
| Petitioners |
Rao TARIQ ISLAM
|
| Respondents |
FEDERATION OF PAKISTAN
|
| Citations |
2023 SLD 6941,
2023 PLJ 189
|
| Other Citations |
1963 AIR (SC) 1667,
AIR 1971 Kar 65,
1967 AIR (MP) 268,
1997 SC 582
|
| Laws Involved |
Income Tax Ordinance, 2001,
Federal Board of Revenue Act, 2007,
Constitution of Pakistan, 1973
|
| Sections |
236(d),
7,
199
|