Law: Income Tax Ordinance, 2001

Section: 165,182,182(1)

Law: Constitution of Pakistan, 1973

Section: 73

Income Tax Ordinance (XLIX of 2001)---.--- ---.----Ss. 182 & 165---.---Constitution of Pakistan, Art. 73---.---Requirement of filing statement of withholding tax---.---Penalty for non-filing of withholding tax statement---.---Determination as to what constitutes a "Money Bill" under Art. 73 of the Constitution---.---Nature and scope of imposition of "penalty" under the Income Tax Ordinance, 2001---.---Petitioners impugned vires of S. 182(1) of the Income Tax Ordinance, 2001 which provided for penalty in case of failure to furnish statement of withholding tax as required under S. 165 of the Income Tax Ordinance, 2001---.---Validity---.---In terms of Art. 73 of the Constitution, for purpose of a "Money Bill", any provision dealing with imposition, abolition, remission, alteration or regulation of any tax was included meaning thereby that any law relating to regulation of any tax fell within domain of "Money Bill"---.---Purpose of penalty was to ensure that statutory provisions of the Income Tax Ordinance, 2001 were complied with and failure to do so would render a taxpayer liable under S. 182 of the Income Tax Ordinance, 2001---.---For purpose of levy of such penalty, an exercise had to be carried out by the Department, wherein it was to be determined whether or not non-filing of withholding statement was deliberate and whether the same was done with a mala fide intent---.---For purpose of levy of penalty, mens rea was an essential ingredient---.---High Court observed that challenge to the vires of S. 182(1) of the Income Tax Ordinance, 2001 was not competent---.---Constitutional petition was disposed of, accordingly. D.G. Khan Cement Company Ltd. and others v. Federation of Pakistan and others 2004 SCMR 456 rel. THIS ORDER PASSED BY: AYESHA A. MALIK, JUSTICE:---.--- Through this consolidated order, I intend to decide upon the issues raised in W.Ps. Nos.6565/2015, 27554/2013, 2901/2014 and 40714/2016 as common questions of law arise in all the stated petitions. 2. The Petitioners are all taxpayers and their common grievance is that they did not file the withholding tax statement as required under section 165 of the Income Tax Ordinance, 2001 ("Ordinance"),…

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