| Citation(s) |
|---|
| 2010 SLG 1183 2010 SLD 1183 (2010) 102 TAX 132 2010 PTD 1924 2011 PTR 1 |
Sindh High Court
C.Ps. Nos. D-1901 to D-1905, D-1931 to 1941, D-1971 to 1973,D-1980 to 1983, D-2062, 2063, D-2104, 2136, D-2146, 2147,2168, 2169, D-2244, 2268, 2278, 2282 to 2285, D-2342, 2392,2570, 2631, 2632, 2728, 2903 of 2009, D-41, D-167 and D-180of 2010, decision dated: 16-07-2010
GULZAR AHMAD AND IRFAN SAADAT KHAN, JJ
Muhammad Izhar for Private
Respondents (in C.P. Nos. 1938 and 1971 of 2009). Atif Awan for Private
Respondents (in C.P. No. D-2392 of 2009).
C.Ps. Nos. D-1901 to D-1905, D-1931 to 1941, D-1971 to 1973,D-1980 to 1983, D-2062, 2063, D-2104, 2136, D-2146, 2147,2168, 2169, D-2244, 2268, 2278, 2282 to 2285, D-2342, 2392,2570, 2631, 2632, 2728, 2903 of 2009, D-41, D-167 and D-180of 2010, decision dated: 16-07-2010
GULZAR AHMAD AND IRFAN SAADAT KHAN, JJ
Muhammad Izhar for Private
Respondents (in C.P. Nos. 1938 and 1971 of 2009). Atif Awan for Private
Respondents (in C.P. No. D-2392 of 2009).
Syed NASIR ALI and 3 othersVsPAKISTAN through Secretary Ministry of Law, Islamabad and 3 others
Law: Income Tax Ordinance, 2001
Section: 2(20)(63),4,12(2)(a)
Law: Constitution of Pakistan, 1973
Section: 142,25,199,Fourth Schedule
Law: Finance Act, 2009
Section: FirstSchedule
[Income Tax Ordinance (XLIX of 2001)].....Sections. 2(20)(63), 4, 12(2)(a) Second Proviso [as added by Finance Act (I of 2009)], First Sched. Part-1, Division-1, Para (1- A), Third proviso [as added by Finance Act (I of 2009] & Para (2)...Constitution of Pakistan (1973), Arts. 142, 25, 199 & Fourth Sched. Part-1, Entries 47, 48--Constitutional petition...Imposition of Internally Displaced Persons Tax (IDPT) on taxable income of one million rupees or more @ 5% for tax year 2009...Imposition of IDPT on bonus paid or payable to corporate employees receiving salary income of one million or more @ 30% for tax year 2009...Petitioner's plea that IDPT was unconstitutional for being a triple tax as person paying IDPT would have to pay (i) income tax on his salary, (ii) a tax on income tax paid by hint on his salary, and (iii) tax on bonus...Validity...Federal Government had imposed such tax in order to obtain resources for helping out about three million poor and needy persons displaced from areas of Swat, Wana, Malakand and other areas on account of action taken against terrorists...Any Entry in Legislative List should be given widest possible meaning...Word "income" used in Entry 47 of Fourth Sched. of the Constitution should be construed in a very wide manner and power to legislate would be taken in all incidental and ancillary matters...Financial resources would be needed for running a State, which had to impose taxes for achieving its cherished goals...Helping such poor and needy persons was a noble cause...Pakistan being a welfare State was bound to take care of its citizens and help them whenever found to be in distress...Legislature would enjoy plenary powers to impose taxes at its discretion within framework of the Constitution- Entries in Legislative List of the Constitution were not powers of Legislature, but only fields of legislative heads...Legislature was competent to levy IDPT as Entry 47 of Fourth Sched. of the Constitution was wide enough not only include tax but also tax on tax--Intention of legislature as revealed from third proviso added by Finance Act, 2009 to Para (1-A) of Division-1, Part-1 of First Sched. of Income Tax…