Law: Punjab Urban Immovable Property Tax Act, 1958

Section: 3,4(a),6,

Law: Companies Act, 2017

Section: 183(3)

Law: Constitution of Pakistan, 1973

Section: 165

Punjab Urban Immovable Property Tax Act (V of 1958)--- ----Ss. 4(a), 6 & 3---Constitution of Pakistan, Art. 165---Levy of property tax---Exemption from payment of property tax---Property owned by Federal Government indirectly through corporations/limited liability companies---Benefit of Art. 165 of the Constitution---Scope---Petitioner, which was a limited liability company owned by the Federal and Provincial Governments, impugned notices for payment of property tax on the ground that it was exempt from payment of such tax under S. 4(a) of the Punjab Urban Immovable Property Tax Act, 1958---Validity---Entire shareholding of the petitioner company vested with the Federal Government, and Board of Directors of the same were chaired by the Prime Minister, and therefore petitioner was a Federal Government institution and its property vested in the Federal Government---Carrying of functions of Federal Government through a limited liability corporation was modern phenomenon and had sound Constitutional basis---No line under the law, could be drawn between property held directly by Federal Government and that held through a private limited company; and such distinction between the two would be otiose---Benefit of Art. 165 of the Constitution was not merely available to property owned directly by Federal Government but also those owned through corporations---Impugned notices raising demand for payment of property tax were set aside---Constitutional petition was allowed, accordingly. Union Council v. Associated Cement (Pvt.) Ltd. 1993 SCMR 468 and Central Board of Revenue Islamabad and another v. WAPDA and another PLD 2014 SC 766 distinguished. National Bank of Pakistan v. Executive District Officer (Revenue), Multan 2015 CLC 1618; Central Board of Revenue and another v. S.I.T.E PLD 1985 SC 97 and WAPDA v. Excise and Taxation Department 2017 PTD 517 rel. THIS JUDGMENT DELIVERED BY: SHAHID KARIM, J.--- This petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973 challenges the demand for property tax from the petitioner. In the beginning the challenge was made to the demand of an amount of Rs.10,693,881/- for the year 2014-15. During the…

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