Law: Income Tax Ordinance, 2001

Section: 2(68),4A,74

Law: Constitution of Pakistan, 1973

Section: 199

[Income Tax Ordinance, 2001 (XLIX of 2001)].....Sections 2(68), 4A & 74-.- Constitution of Islamic Republic of Pakistan, 1973-Article 199-Constitutional petition-.- Levy of Surcharge @ 15% of Income Tax-.- Normal Tax period-Closing of accounts on 31/12/2010-.- Application of Section 4-A-.- Validity-.- Whether surcharge was levied for 3-1/2 months w.e.f. 15/03/2011 to 30/06/2011 and not made applicable for Tax year 2010 or prior thereto-Held yes-Whether normal tax period would be period of twelve months ending on 30th June-.- Held yes-Whether permission granted to petitioner was only to accommodate him and not for purposes to evade payment of income on such account-Held yes-Whether impugned surcharge was levied for rehabilitation of flood affectees and would apply to every Tax-payer using either normal Tax Year or Special Tax Year-.- Held yes. In the context of submissions made by learned counsel, we have carefully perused the case record and gone through the newly added section 4A of the Ordinance, 2011. Admittedly, the enactment was made only for 3-1/2 months w.e.f. 15/03/2011 to 30/06/2011. The language of newly added section is very clear that the same shall not be payable for the tax year 2010 and prior tax years and shall be applicable only from 15/03/2011 to 30/06/2011, but the intention of the legislature is that it shall be payable by 'every tax-payer' at the rate of 15% of the Income Tax payable. There is no mention that the surcharge is applicable only to those tax-payer whose tax year starts from 1st July and ending on 30th June and those whose tax year starts other than the normal tax year are exempted. In order to meet the submission of learned counsel for the petitioner that their tax year ending on 31st day of December. Normal tax year shall be a period of twelve months ending on the 30th day of June and where the tax year of a person changes as a result of sub-Sections (2), (3) or (5), the period between the last full tax year prior to the change and the date on which the changed tax year commences shall be treated as a separate tax year, to be known as the "transitional year." Therefore, we are not inclined to accept the submission of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492