Law: Finance Act, 1991

Section: 12,234

(a) Constitution of Pakistan (1973)----Art. 199---Constitutional jurisdiction---Scope---Distinct from Appellate jurisdiction---Fact alone that after the order of Tribunal, assessee has no further remedy to avail will not require the High Court to sit as a Court of Appeal while exercising Constitutional jurisdiction to decide contentious matters both on fact as well as on law---Where the law contemplates an end to proceedings after a decision in appeal or revision, the High Court will not convert itself into a Court of further appeal if the law has not provided one. (b) Finance Act (XII of 1991)---S. 12(vi)---Companies Ordinance (XLVII of 1984), S. 234 & Fifth Sched.---Corporate Assets Tax---Work in progress---Work in progress has to be included in the assets of the assessee-Company on a particular date and reflected in the balance-sheet for the purposes of Corporate Assets Tax---Revenue Authorities were justified in resorting to Fifth Sched. in the Companies Ordinance, 1984 in circumstances. THIS JUDGMENT DELIVERED BY This Constitutional petition seeks a declaration that order passed by respondent No. 3 Income-tax Appellate Tribunal on 21-2-2001 is unlawful and of no legal effect. 'It is also prayed that respondent No. 3 should be directed to rehear the issue with specific reference to section 12(12)(b)(d) of the Finance Act, 1991. 2. On 29-6-1999 the Deputy Commissioner of Income Tax/Wealth Tax Circle-16 Companies Zone-I, Lahore framed an assessment under section 12(vi) of the Finance Act, 1991. Section 12 of the Act provided for the charge of a tax to be known as "Corporate Assets Tax in respect of the value of assets held by a company on the specified date". The Assessing Officer found that the petitioner had assets at Rs. 5,48,06,163 and capital work in progress at Rs. 88,60,654. Finding that their value exceeded the exempted limit of 50 millions as given in the aforesaid Act, the Assessing Officer proceeded to frame assessment and to raise a demand of Rs. 38,94,000. This assessment was framed in the second round inasmuch as the one framed in the earlier round was set aside by the Member (Judicial) C.B.R. The order so framed was maintained by the…

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