Law: Income Tax Ordinance, 2001

Section: 80D,234,80,235,234(A)(3),80CC,80C,

Law: Constitution of Pakistan, 1973

Section: 199

Law: Sales Tax Act, 1990

Section: 3,7,7A

NOTES: Tax collected under S.234-A(3) of Income Tax Ordinance, 2001 was final tax on income of CNG Stations. No further tax could be levied on the consumption of electricity under S.235 of Income Tax Ordinance, 2001 as the same would amount to double taxation. Provisions of S.234-A(3) of Income Tax Ordinance, 2001 had nothing to do with the consumption of electricity used by a taxpayer. Sections 234-A(3) and 235 of Income Tax Ordinance, 2001, dealt with different subjects providing for collection of taxes under different schedules of rates and were not repugnant to each other. Sections 234-A(3) and 235 of Income Tax Ordinance, 2001 being neither discriminatory nor confiscatory, were not beyond the competence of legislature. Tax on value addition was levied by virtue of S.7A of Sales Tax Act, 1990 which was prefaced with non obstante clause. Petitions were dismissed for being without any substance. Ref: PLD 2004 Pesh. 263, 2009 PTD 1473 , PLD 1997 SC 582 THIS JUDGMENT DELIVERED BY: EJAZ AFZAL KHAN, CHIEF JUSTICE:---.--- By this single judgment, we propose to decide Writ Petition .Nos.282, 1364, 1829, 1995, 2773, 3003, 3008, 3014, 3015, 3024 of 2009, 81, 82, 83 and 84 of 2010 wherein vires of section 235 of the Income Tax Ordinance, 2001; and section 7A of the Sales Tax Act, 1990 and the rules framed there-under have been challenged. 2. Learned counsel for the petitioners contended that once under section 234-A(3) of the Income Tax Ordinance, 2001 (hereinafter referred to as Ordinance), the tax collected under the said provision is said to be final tax on income of CNG Stations, no further tax can be levied on the consumption of electricity under section 235 of the Ordinance. Such tax, the learned counsel added, would be all the more illegal and tantamount to double taxation when it has been provided in section 234-A(3) of the Ordinance that the tax thus collected shall be final on the income of the CNG station. The learned counsel next contended that where section 3 of the Sales Tax Act, 1990 (hereinafter referred to as Act), clearly provides that the sales tax shall be charged at the rate of 16% no rule which is an off-shoot of subordinate legislation can be…

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