Law: Wealth Tax Act, (XV of 1963)

Section: 16(4),SecondSched.Cl.(8)

Law: Protection of Economic Reform Act, 1992

Section: 5,5(1),5(2)

Wealth Tax Act (XV of 1963)--S.16(4) & Second Sched. Cl. (8)---Protection of Economic Reforms Act (XII of 1992), S.5---Foreign currency account---Immunity against wealth tax---Scope---Foreign currency account maintained by assessee with a bank located in a foreign country---Non-disclosure of such account and amount credited therein by assessee in wealth tax return for relevant assessment year---Order of taxation of such amount passed by authority upheld by Appellate Authority and Appellate Tribunal---Assessee's plea that such account for being outside of Pakistan was immune from probe and exempt from levy of income tax and wealth tax---Validity---Provision of S. 5(1) and (2) of Protection of Economic Reforms Act, 1992 had an overriding effect and must be read together and not independently---According to S. 5(1) and (2) of Protection of Economic Reforms Act, 1992, foreign currency account maintained only in Pakistan by a citizen of Pakistan would be immune from levy of income tax and wealth tax---Agreement for Avoidance of Double Taxation between Government of Pakistan and Federal Council of foreign country in question dilated upon tax on income and not on assets/wealth---Provision of S.4 of Protection of Economic Reforms Act, 1992 related to free movement of foreign currency and not to taxation of deposits in foreign currency account---Where an asset/wealth was not specifically exempted from declaration by any law, but was required to be declared by Wealth Tax Act, 1963 same would be taxable if found taxable---High Court dismissed appeal in circumstances. (b) Interpretation of statutes--- ----Fisacal Statute, interpretation of---Scope---Fiscal statute would be construed liberally in favour of an assessee. JUDGMENT MRS. IRSHAD QAISER, J.---By this single judgment, we propose to dispose of S.A.O. No.60 of 2001 and S.A.O. No.61 of 2001 as common questions of law are involved therein. 2. The facts relevant for the disposal of these appeals are that appellant was an assessee of the Income Tax/Wealth Tax Department for the purpose of wealth tax and filed returns of wealth for the assessment years 1997-98 and 1998-99. The assessee had a foreign currency, Sterling…

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