Law: Income Tax Ordinance, 2001

Section: 4,149,First Schedule

Income Tax Ordinance (XLIX of 2001)- Ss.4, 149 & First Sched., Serial Nos. 4, 5, 6 of Cl. 1-A, Division-1, Part 1 [as amended by Finance Act (XVII of 2012)]- Constitution of Pakistan, Art. 199- Constitutional petition- Taxable salary- Rates of tax- Table inserted by Finance Act, 2012, in respect of rates of tax for salaried individuals with particular reference to amount of tax calculated under slabs of income at Serial Nos.5 & 6 of table "B" was ultra vires of the Constitution, and Income Tax Ordinance, 2001. Imran Ahmad v. Federation of Pakistan and another PLD 2014 Sindh 48 = 2014 PTD 225 fol. ORDER: SHAHID KARIM, JUSTICE:---.--- This petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973 lays a challenge to the fixed tax in slabs Nos.4, 5 and 6 in the table substituted through Finance Act, 2012 in Part I of the First Schedule of the Income Tax Ordinance, 2001 to be declared unconstitutional and ultra vires. 2. Precisely, by the. said amendment a progressive tax rate was promulgated and in particular the challenge in this petition is to slabs Nos.4, 5 and 6 in the impugned table. Suffice to say that the matter was dealt with by the High Court of Sindh and was decided in a reported judgment as Imran Ahmad v. Federation of Pakistan and another [PLD 2014 Sindh 48 = 2014 PTD 225). The issue in that judgment was on all fours with the instant petition and the Division Bench of the High Court of Sindh returned the finding as under:-- "16. We are of the view that the anomaly in the calculation and quantification of tax at S.Nos.4, 5 and 6 of the Table-B as referred to hereinabove, has crept in due to inadvertence and on account of incorrect arithmetic calculation as there is no rational basis or reasonableness whatsoever in such determination of the tax liability. We are of the opinion that the amount of tax as calculated under slabs of taxable income at S. Nos. 4, 5 and 6 of table "B" is without any conscious application of mind. It also lacks certain of charge and is devoid of any rational basis and has resulted in creation of additional burden of tax upon a particular group of salaried individuals without legal sanction. It…

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