| Case ID |
f3856db9-064b-4efb-b3e5-ad072cc1ccd1 |
| Body |
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| Case Number |
Civil Appeals Nos.2221 to 2229 of 1998 |
| Decision Date |
Mar 28, 2001 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan allowed the appeals, setting aside the judgment of the Lahore High Court. The court determined that the provisions of Rule 8(2)(c)(i) of the Wealth Tax Rules, 1963, which differentiated between quoted and unquoted companies for the purposes of wealth tax assessment, were valid and intra vires. The court held that the classification between companies listed on the stock exchange and those not listed was reasonable, as the market value of shares for unlisted companies could not be readily determined. The ruling emphasized that equal protection under the law does not require identical treatment in all circumstances but allows for reasonable classification that serves a legitimate purpose. The court concluded that the rule in question was not discriminatory and upheld its constitutionality. |
| Summary |
In the landmark case of Civil Appeals Nos. 2221 to 2229 of 1998, the Supreme Court of Pakistan examined the constitutionality of Rule 8(2)(c)(i) of the Wealth Tax Rules, 1963. This rule established a distinction between the assessment of wealth tax for companies quoted on the stock exchange versus those that are unquoted. The appellants argued that the rule was discriminatory and violated the equal protection clause of the Constitution of Pakistan. However, the court found that the differentiation was based on reasonable classification, as the market value of shares for unquoted companies is not easily ascertainable. The Supreme Court's decision reaffirmed the principle that equal treatment under the law does not necessitate identical treatment for all entities but allows for distinctions based on rational criteria. This case highlights the delicate balance between taxation laws and constitutional rights, particularly in the context of wealth tax assessment. Keywords: Wealth Tax Rules, Supreme Court of Pakistan, equal protection, taxation law, constitutional rights, unquoted companies, quoted companies. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Government of Pakistan,
Secretary, Finance Division
|
| Judges |
MIAN MUHAMMAD AJMAL,
HAMID ALI MIRZA
|
| Lawyers |
M. Ilyas Khan,
Ch. M. Aslam Chattha,
Sh. Salah-ud-Din
|
| Petitioners |
FEDERATION OF PAKISTAN
|
| Respondents |
Mrs. SAMRA SHAKEEL
|
| Citations |
2001 SLD 714,
2001 PTD 3919,
(2002) 85 TAX 1
|
| Other Citations |
I.A. Sharwani and others v. Government of Pakistan through Secretary, Finance Division, Islamabad and others 1991 SCMR 1041,
Messrs Elahi Cotton Mills Ltd. and others v. Federation of Pakistan through Secretary, Ministry of Finance, Islamabad and 6 others PLD 1997 SC 582,
M.U.A. Khan v. M. Sultan PLD 1974 SC 228,
Ziauddin v. Punjab Local Government 1985 SCMR 365,
Federation of Pakistan v. Azam Ali 1985 SCMR 386
|
| Laws Involved |
Wealth Tax Rules, 1963,
Constitution of Pakistan, 1973
|
| Sections |
R-8,
R.8(2)(c)(i),
185(3),
25(1)
|