| Case ID |
ffd327b4-264d-403a-9a59-c325e9b1a559 |
| Body |
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| Case Number |
Tax Reference No.48 of 2006 |
| Decision Date |
May 27, 2008 |
| Hearing Date |
May 27, 2008 |
| Decision |
The court dismissed the reference application, concluding that the withdrawal of the charge under section 80D of the Income Tax Ordinance, 1979, through the Finance Ordinance, 2001, was not curative or remedial and could not be applied retrospectively. The court held that fiscal statutes should be interpreted strictly according to their language, and the withdrawal of a tax charge does not imply a retrospective effect unless explicitly stated by the legislature. Therefore, the charge for the assessment year 2000-2001 remained valid. |
| Summary |
This case involves a dispute between Messrs ALHABIB FLOUR MILLS and the Commissioner of Income Tax, Medium Taxpayers Unit, Rawalpindi, heard by the Lahore High Court. The central issue was the applicability of section 80D of the Income Tax Ordinance, 1979, which imposed a charge on the turnover of individuals and associations of persons for the year 2000-2001. The charge was later withdrawn by the Finance Ordinance, 2001. The petitioners argued that this withdrawal should be considered curative and applied retrospectively to provide relief. However, the court, led by Judges Nasim Sikandar and Kh. Farooq Saeed, dismissed this argument. The court emphasized that fiscal statutes must be interpreted strictly, and a retrospective application requires clear legislative intent. The court referenced notable cases such as Commissioner of Income Tax v. Shahnaz Ltd., Dreamland Cinema Multan v. Commissioner of Income Tax, and Dawood Cotton Mills v. Commissioner of Income Tax to support its decision. Keywords such as 'Income Tax Ordinance', 'retrospective legislation', and 'fiscal statute interpretation' are central to this case. |
| Court |
Lahore High Court
|
| Entities Involved |
Messrs ALHABIB FLOUR MILLS,
COMMISSIONER OF INCOME TAX, MEDIUM TAXPAYERS UNIT, RAWALPINDI
|
| Judges |
NASIM SIKANDAR,
KH. FAROOQ SAEED
|
| Lawyers |
Ms. Shahina Akbar
|
| Petitioners |
Messrs ALHABIB FLOUR MILLS
|
| Respondents |
COMMISSIONER OF INCOME TAX, MEDIUM TAXPAYERS UNIT, RAWALPINDI
|
| Citations |
2008 SLD 2043,
2008 PTD 1715
|
| Other Citations |
1993 SCMR 73,
PLD 1997 Lah. 292,
2000 PTD 285,
2002 SCMR 356,
2002 SCMR 39
|
| Laws Involved |
Income Tax Ordinance, 1979,
General Clauses Act, 1897
|
| Sections |
80-D,
6
|