"\u003chtml xmlns:o=\"urn:schemas-microsoft-com:office:office\"\r\nxmlns:w=\"urn:schemas-microsoft-com:office:word\"\r\nxmlns:st1=\"urn:schemas-microsoft-com:office:smarttags\"\r\nxmlns=\"http://www.w3.org/TR/REC-html40\"\u003e\r\n\r\n\u003chead\u003e\r\n\u003cmeta http-equiv=Content-Type content=\"text/html; charset=windows-1256\"\u003e\r\n\u003cmeta name=ProgId content=Word.Document\u003e\r\n\u003cmeta name=Generator content=\"Microsoft Word 10\"\u003e\r\n\u003cmeta name=Originator content=\"Microsoft Word 10\"\u003e\r\n\u003clink rel=File-List href=\"2004J5946_files/filelist.xml\"\u003e\r\n\u003ctitle\u003eFINANCE ACT 2004\u003c/title\u003e\r\n\u003co:SmartTagType namespaceuri=\"urn:schemas-microsoft-com:office:smarttags\"\r\n name=\"Street\"/\u003e\r\n\u003co:SmartTagType namespaceuri=\"urn:schemas-microsoft-com:office:smarttags\"\r\n name=\"address\"/\u003e\r\n\u003co:SmartTagType namespaceuri=\"urn:schemas-microsoft-com:office:smarttags\"\r\n 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windowtext;\r\n\tmso-para-margin:0in;\r\n\tmso-para-margin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:10.0pt;\r\n\tfont-family:\"Times New Roman\";}\r\n\u003c/style\u003e\r\n\r\n \r\n\r\n\u003cbody lang=EN-US style=\u0027tab-interval:.5in\u0027\u003e\r\n\r\n\u003cdiv class=Section1\u003e\r\n\r\n\u003ch3\u003eFINANCE ACT 2004\u003c/h3\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003eCHANGES IN INCOME\r\nTAX LAW\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003eRELUCTANCE TO TAX\r\nUNDOCUME ED SECTOR\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003eBy\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003eHuzaima Bukhari\r\nand Dr. Ikramul Haq, Advocates, \u003c/b\u003e\u003cst1:City\u003e\u003cst1:place\u003e\u003cb\u003eLahore\u003c/b\u003e\u003c/st1:place\u003e\u003c/st1:City\u003e\u003cb\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eLevy and collection of taxes is\r\nthe sole prerogative of sovereign State. Parliament can introduce any change in\r\ntax laws by using its wide powers in this regard by either amending a\r\nparticular tax statute or providing the same in a Finance Act. \u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe adoption of Finance Bill,\r\n2004 by the Parliament on June 24, 2000, three days before the \u0027scheduled date\r\nand in utter haste, shows that the so\u0026#8209;called elected representatives of\r\nthe people (sic) were not interested in fulfilling their obligation towards\r\nState and masses that is to betterment of society, but to please foreign\r\nmasters. Despite vehement\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003edenial by the\r\nFinance Minister (prime minister in waiting), it is common knowledge that the\r\nfiscal proposals were prepared on dictates of foreign donors under tight\r\nbureaucratic controls without any public debate or dialogue.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe Parliament was not even\r\nengaged in the process of budget -making as there was no input from any Select\r\nCommittee of either House of the Majlis\u0026#8209;e\u0026#8209;Shoora regarding\r\npreparation of financial proposals for the 2004\u0026#8209;05 budget. The Parliament\r\nhas once again proved to be a rubber stamp as far as the formulation of tax\r\npolicy of the Government is concerned. As usual it is the handiwork of the\r\nFinance Ministry wizards and bureaucrats sitting in the Central Board of\r\nRevenue (CBR).\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eNo doubt the fiscal changes this\r\ntime are generally business friendly (though not necessarily people\u0026#8209;friendly)\r\nand growth\u0026#8209;oriented but the fact remains that the incidence of taxes\r\nremains more on the poor and less on the rich. Instead of making declarations\r\nof assets mandatory for privileged classes, immunity has been granted to\r\npersons having income less than Rs. 500,000 from filing wealth statements acid\r\nscope of presumptive tax regime PTR) has been further expanded allowing\r\nimporters, contractors, suppliers, petroleum product dealers and commission\r\nagents to pass their tax burden to consumers.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe tax\u0026#8209;to\u0026#8209;GDP ratio\r\nhas further deteriorated [9.6% for financial year 2002\u0026#8209;2003 and 9.3 for\r\nfinancial year 2003\u0026#8209;2004] confirming that policy\u0026#8209;makers and tax\r\nadministrators have failed to tap the real revenue potential of the country\r\ndespite the fact that Rs. 510.6 billion record collection was made first time\r\nin the history of \u003cst1:country-region\u003e\u003cst1:place\u003ePakistan\u003c/st1:place\u003e\u003c/st1:country-region\u003e.\r\nCollection of over Rs. 510 billion, against all negative factors prevailing\r\n(the main concern being law and order situation) shows that the CBR, in the\r\npast, was not utilized properly and certain classes are yet not willing let it\r\nwork as an independent institution. If CBR becomes a sovereign tax authority,\r\ninsulated from political and business interests, there is every possibility to\r\ncollect revenue to the tune of Rs.800\u0026#8209;900 billion in the next three\r\nyears\u0027 time making \u003cst1:country-region\u003e\u003cst1:place\u003ePakistan\u003c/st1:place\u003e\u003c/st1:country-region\u003e\r\na truly self\u0026#8209;reliant country.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe Government .has once again\r\nfailed to demonstrate strong political will to eliminate large\u0026#8209;scale tax\r\nevasion and existence of a mammoth black economy that have resulted in colossal\r\nloss of revenue to the State. The Government has not done anything to rectify\r\nthe situation which is reducing the built\u0026#8209;in elasticity of a fiscal\r\nsystem to the extent that the tax evaded income is being spent on goods and\r\nservices that help to generate inflationary pressures and raise prices of real\r\nproperty [our unprecedented remittances from abroad are largely being absorbed\r\nin this unproductive sector]. In the presence of a grave challenge to combat\r\nterrorism, coupled with money laundering crises, and the problem of ever\u0026#8209;growing\r\nblack money, (which according to official and independent experts is around Rs.\r\n1.8 trillion: about 70 %a of the total economy), there is an urgent need to\r\nlaunch a well\u0026#8209;thought for anti\u0026#8209;money laundering\u0026#8209;asset seizure\r\nlaw to prevent this huge amount from becoming a lethal weapon in the hands of\r\nmafias who are now in control of economy as well as the Government.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cst1:country-region\u003e\u003cst1:place\u003ePakistan\u003c/st1:place\u003e\u003c/st1:country-region\u003e\r\nhas been facing a variety of crises specifically in areas of: resources for its\r\ndevelopmental policies, meeting trade deficits, fiscal deficits arid balance of\r\npayment, and what not. One of the factors responsible for the present situation\r\nis the great speed with which black money is generated. The CBR is directly\r\nresponsible for this phenomenon as its mafia\u0026#8209;like operations has helped\r\nthe people to avoid tax on incomes by paying it \u0026quot;due share\u0026quot;. Through\r\nthe infamous system of SROs [Statutory Regulator Orders], the CBR\u0027s top\r\nofficials provide \u0026quot;legal\u0026quot; ways and means to the mighty sections of\r\nsociety to amass huge wealth that is now threatening the State\u0027s very survival.\r\nIn the hands of corrupt politicians, bureaucrats and terrorists, this black\r\nmoney has played havoc with the humanity at large.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe gruesome face of black money\r\nemerges in the corridors of power, political as well as administrative. No\r\ncountry other than \u003cst1:country-region\u003e\u003cst1:place\u003ePakistan\u003c/st1:place\u003e\u003c/st1:country-region\u003e\r\nknows better about the perils of allowing money launderers and drug traffickers\r\nto get an upper hand. We are at present not only facing a drug\u0026#8209;abusing\r\npopulation (mostly young) of nearly 4 million, but also many terrorist\r\norganisations, which by themselves pose a threat to the Government. The fact is\r\nthat a cartel or a group of cartels have become so powerful that they can work\r\nout agreements with terrorists and saboteurs to emasculate authority of the\r\nState. No serious effort has been made by successive Governments, both military\r\nand civil, to determine the loss of revenue due to the existence of this\r\nunderground economy,\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb\u003e\u003cu\u003ePart IV\u003co:p\u003e\u003c/o:p\u003e\u003c/u\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.5in\u0027\u003e*\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e          \u003c/span\u003eA new clause (3A) has been inserted to\r\nexempt people from payment of tax on any remission on loan or mark-up under the\r\nState Bank of \u003cst1:country-region\u003e\u003cst1:place\u003ePakistan\u003c/st1:place\u003e\u003c/st1:country-region\u003e,\r\nBanking Policy Department\u0027s Circular No.29 of 2002, dated \u003cst1:date Month=\"10\"\r\nDay=\"15\" Year=\"2002\"\u003ethe \u003cspan style=\u0027letter-spacing:1.1pt\u0027\u003e15\u003csup\u003eth\u003c/sup\u003e \u003c/span\u003eOctober,\r\n 2002\u003c/st1:date\u003e, to the extent not set off against the losses under Part VIII\r\nof Chapter III.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.5in\u0027\u003e*\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e          \u003c/span\u003eA new clause (36A) has been inserted\r\nwhereby exemption from withholding has been extended to widows and other\r\neligible investors in Bahbood [Urdu word for welfare] Savings Certificate or\r\nAccount.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.5in\u0027\u003e*\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e          \u003c/span\u003eTwo new clause viz. (38A) and (38B)\r\nare inserted exempt ing Venture Capital Company from withholding tax under\r\nsections 150, 151 and 233, and Islamic Development Bank from withholding tax\r\nunder section 150.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.5in\u0027\u003e*\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e          \u003c/span\u003eA new clause (47C) is inserted to the\r\neffect that the provisions of subsection (1) of section 154 will not apply to\r\nan exporter in respect of cooking oil or vegetable ghee exported to \u003cst1:country-region\u003e\u003cst1:place\u003eAfghanistan\u003c/st1:place\u003e\u003c/st1:country-region\u003e\r\nfrom whom advance tax has been withheld under section 148 on import of edible\r\noil.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cu\u003eFourth Schedule - various\r\namendments\u003co:p\u003e\u003c/o:p\u003e\u003c/u\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe following amendments have\r\nbeen made in the Fourth Schedule:\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.5in\u0027\u003e*\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e          \u003c/span\u003eIn rule 1 an amendment has been\r\nproposed that in income from other business shall be profit or loss before tax\r\nas per profit and loss account prepared under the Insurance Ordinance, 2000\r\n(XXXIX of 2000), excluding any surplus appropriation made during the year.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;text-indent:-.5in\u0027\u003e*\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e          \u003c/span\u003eRule 2 is proposed to be substituted\r\nproviding that the profits and gains of a life insurance business shall be the\r\ncurrent year\u0027s surplus appropriated to profit and loss account prepared under\r\nthe Insurance Ordinance, 2000 (XXXIX of 2000), as per advice of the Appointed\r\nActuary, net of adjustments under sections 22(8), 23(8) and 23(11) of the\r\nInsurance Ordinance, 2000 (XXXIX of 2000) so as to exclude from it any\r\nexpenditure other than expenditure which is, under the provisions of Part IV of\r\nChapter III, allowed as a deduction in computing profits and gains of a\r\nbusiness to the extent of the proportion of surplus not distributed to policy\r\nholders.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003eLETTER FROM .ABDUL\r\nMALIK KHAN, I.T.P., CHARSADDA TO THE MEMBER (INCOME-TAX), CENTRAL BOARD OF\r\nREVENUE\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003e(\u0026quot;Clarification regarding section 129(2)\r\nprecondition \u003c/span\u003eof \u003cspan style=\u0027letter-spacing:.1pt\u0027\u003epayment \u003c/span\u003eof \u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003enot less than 15 percent. of amount \u003c/span\u003eof \u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003etax for filing appeal before the CIT(A) Assessment\r\nYears 2001-2002 and 2002-2003) \u003c/span\u003e(24th July, 2004)\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e1. \u003cspan style=\u0027mso-tab-count:\r\n1\u0027\u003e        \u003c/span\u003eThe Member (Income-tax), \u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;text-indent:.5in\u0027\u003eCentral Board of\r\nRevenue, \u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;text-indent:.5in\u0027\u003e\u003cst1:City\u003e\u003cst1:place\u003eIslamabad\u003c/st1:place\u003e\u003c/st1:City\u003e.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e2.\r\n\u003cspan style=\u0027mso-tab-count:1\u0027\u003e        \u003c/span\u003eRegional Commissioner of\r\nIncome-tax,\u003c/span\u003e \u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;text-indent:.5in\u0027\u003eNorth Region,\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;text-indent:.5in\u0027\u003e\u003cst1:Street\u003e\u003cst1:address\u003eLugman-e-Hakim\r\n  Road\u003c/st1:address\u003e\u003c/st1:Street\u003e,\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;text-indent:.5in\u0027\u003e\u003cst1:City\u003e\u003cst1:place\u003eIslamabad\u003c/st1:place\u003e\u003c/st1:City\u003e.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e(CLARIFICATION\r\nREGARDING SECTION 129(2) PRECONDITION OF PAYMENT OF NOT LESS THAN 15 PER CENT.\r\nOF AMOUNT OF TAX FOR FILING APPEAL BEFORE THE CIT(A) ASSESSMENT YEARS 2001-2002\r\nAND 2002-2003)\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eKindly clarify the following\r\nthrough a Circular Letter so that the confusion no., prevail be removed.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e1. The Honourable High Court of\r\nLahore vide their judgment Writ Petition No.1722 of 2002 decided on 24-10-2003\r\nreported as 2004 PTD 122 has held that the condition is un-Islamic and\r\nun-Constitutional.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e2. A Division Bench comprising\r\nMuhammad Mujeebullah Siddiqui, Chairman (now Judge of Sindh H.C.) and Muhammad\r\nMehboob Alam, Accountant Member, of the Income Tax Tribunal of Pakistan,\r\nreported as (1998) 78 Tax 343 (Trib.) = 1998 PTD (Trib.) 3866 has held vide\r\ntheir verdict in the following words.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e\u0026quot;PRONOUNCEMENT\r\nBY THE SUPERIOR COURTS IN PURSUANCE OF THE INTERPRETATION OF LAW WHETHER HAVE\r\nTHE RETROSPECTIVE EFFECT----- HELD, YES.\u0026quot;\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e3. The Honourable Ombudsman of\r\nPakistan vide Finding/Decision in Complaint No.877-L of 2003, dated \u003cst1:date\r\nYear=\"2003\" Day=\"29\" Month=\"9\"\u003e29-9-2003\u003c/st1:date\u003e reported as 2004 PTD 2017\r\nhas held \u0026quot;THAT IGNORING A DECISION OF SUPERIOR COURT\u0026quot; AMOUNTS TO\r\nARBITRARY CONDUCT ENTAILING \u0026quot;MALADMINISTRATION\u0026quot;.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e4. In my opinion it amounts to\r\ncontempt of Court also.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eKeeping in view the above\r\njudgment/decision if a person has not paid or not paying 15% of the Tax Demand\r\nfor, the assessment years 2001-2002 and 2002-2003 appeals already filed or to\r\nbe filed, what will be the fate of his appeal and what the CIT(A) should do?\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003eAn early\r\nclarification will be highly obliged.\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003c/div\u003e\r\n\r\n\u003c/body\u003e\r\n\r\n\u003c/html\u003e\r\n"