Law: Constitution of Pakistan, 1973

Section: 199

Law: Finance Act, 2015

Section: 9(2)

Law: Income Tax Ordinance, 2001

Section: 4B,137,137(1),DivisionII-AofPart-IoftheF irstSchedule

THIS JUDGMENT DELIVERED BY: SHAHID KARIM, JUSTICE:---.--- This petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973 ("the Constitution"), seeks the following reliefs:- "In view of the facts and circumstances narrated above, it is, therefore, most graciously prayed that this honourable Court be pleased to declare that: A. The insertion of section 4B in the Income Tax Ordinance, 2001, by the respondent Federation, is illegal, unlawful, ab-initio void and ultra vires the Constitution of Islamic Republic of Pakistan, 1973; the same be struck down accordingly. B. Section 9(2) of the Finance Act, 2015 whereby section 4B has been inserted in the Income Tax Ordinance, 2001 is without jurisdiction, illegal, void ab-initio and of no legal effect. It is further prayed that during the pendency of the titled petition restrain the respondents, their officers, agents from refusing to accept the tax return of the petitioner for the tax year 2015, without the payment of super tax u/ s 4B of the Ordinance (either electronically or manually, at the option of the petition), for the tax year 2015, while further restraining the said respondents from taking any actions towards recovery of the impugned levy in any manner whatsoever." 2. This judgment shall also decide similar petitions at Appendix-I with this judgment and which in their broad sweep raise the same question of law. In essence, the challenge in these petitions is to the constitutionality of Section 4B of the Income Tax Ordinance, 2001 ("the Ordinance, 2001"). Section 4B was inserted by the Finance Act, 2015 and seeks to impose a super tax for rehabilitation of temporarily displaced persons. It reads as under:- 4B. Super tax for rehabilitation of temporarily displaced persons.- (1) A super tax shall be imposed for rehabilitation of temporarily displaced persons, for tax years 2015 3[to 2017], at the rates specified in Division IIA of Part I of the First Schedule, on income of every person specified in the said Division. (2) For the purposes of this section, -incomel shall be the sum of the following:- (i) profit on debt, dividend, capital gains, brokerage and…