| Citation(s) |
|---|
| 2021 SLG 2314 2021 SLD 2314 2021 PTD 1779 |
Supreme Court of Pakistan
Civil Appeals Nos. 23 and 24 of 2017, decided on 8th December, 2022. Date of hearing: 8th December, 2022. (Against the judgment dated 02.03.2016 of the Islamabad High Court, Islamabad passed in Intra Court Appeal No. 13 of 2014)
PRESENT: UMAR ATA BANDIAL, C.J., AYESHA A. MALIK AND ATHAR MINALLAH, JJ
Rashdeen Nawaz Qasuri, Additional Attorney General for Appellants (in C.A. No. 23 of 2017). Ghulam Shoaib Jolly, Advocate Supreme Court for Appellant (in C.A. No. 24 of 2017). Muhammad Raza Khan, Advocate Supreme Court for
Respondents Nos. 1-5. Ex party f
Civil Appeals Nos. 23 and 24 of 2017, decided on 8th December, 2022. Date of hearing: 8th December, 2022. (Against the judgment dated 02.03.2016 of the Islamabad High Court, Islamabad passed in Intra Court Appeal No. 13 of 2014)
PRESENT: UMAR ATA BANDIAL, C.J., AYESHA A. MALIK AND ATHAR MINALLAH, JJ
Rashdeen Nawaz Qasuri, Additional Attorney General for Appellants (in C.A. No. 23 of 2017). Ghulam Shoaib Jolly, Advocate Supreme Court for Appellant (in C.A. No. 24 of 2017). Muhammad Raza Khan, Advocate Supreme Court for
Respondents Nos. 1-5. Ex party f
DIRECTOR GENERAL CENTRAL DIRECTORATE OF SAVINGS AND OTHERS
VS
ABID HUSSAIN AND OTHERS
Law: Income Tax Ordinance, 2001
Section: 151(1)(a)
Law: Constitution of Pakistan, 1973
Section: 199
Law: Income Tax Ordinance, 2001
Section: 131(1),151(1)(a)
Income Tax Ordinance (XL1X of 2001)āāS. 151(1)(a)āNational Savings Center located in erstwhile Federally Administered Tribal Area (FATA)āSaving and investment schemesāDeduction of withholding taxāClause (a) of subsection (1) of section 151 of the Income Tax Ordinance, 2001 (āOrdinance of 2001ā), inter alia, provides that where a person pays yield on an account, deposit or a certificate under the National Savings Scheme or Post Office Savings Account, then it becomes a mandatory statutory obligation of the payers of the profit to deduct tax at the rate specified in Part III of the First Schedule from the gross amount of the yield or the profit paid to the recipientāIt is a statutory duty of the Central Directorate of National Savings, (āDirectorateā) to comply with the express requirement provided under section 151(l)(a) of the Ordinance of 2001āNational Savings Center, therefore, acts only to facilitate the public in the erstwhile Tribal Areas to avail the benefits of the various national saving schemes offered by the DirectorateāIncome of the Directorate does not arise nor accrues in the Tribal AreasāSingle Judge of High Court had rightly held the deduction of withholding tax relating to the certificates obtained from the Center as legal and constitutionalāAppeals were allowed. ORDER ATHAR MINALLAH, J.āThis Court had granted leave vide order, dated 20.1.2017, against the judgment of the High Court dated 02.05.2016. 2. The respondents Nos. 1 to 7 had invoked the jurisdiction of the High Court under Article 199 of the Constitution of the Islamic Republic of Pakistan, 1973 (āConstitutionā) asserting that they were residents of Para Chinnar, Kurram Agency, which, prior to the amendment of the Constitution through the 25th Amendment Act 2018, was part of the then Tribal Areas. Their grievance was regarding the deduction of withholding tax by the National Saving Centre, Para Chinnar (āCenterā). It was their case that, since the Income Tax Ordinance, 2001 (āOrdinance of 2001ā) had not been extended to the Tribal Areas, therefore, the deduction of withholding tax relating to the certificates obtained by them from the Center was illegal and constitutionally not valid.ā¦
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