Law: Income Tax Ordinance, 2001

Section: 53,115(4),122(5A),153,169,SecondSched.,P art-IV,clause(42)

Law: Constitution of Pakistan, 1973

Section: 199

(a) Income Tax Ordinance (XLIX of 2001)--- ----Ss. 53, 115(4), 122(5A), 153, 169 & Second Sched., Part-IV, clause (42)---Constitution of Pakistan, Art. 199---Constitutional petition---Maintainability---Finality of tax---Issuance of show cause notice---Normal Tax Regime---Assessee operated as oil/bulk storage terminal, where oil and other similar types of goods were off-loaded from or on-loaded onto ships calling at port---Taxation Officer issued notice under S.122(5A) of Income Tax Ordinance, 2001, on the ground that income constituting payments received by it from operation of its oil terminal was to be brought to tax under Normal Tax Regime (NTR)---Plea raised by assessee was that payments to which it was entitled as a result of operation of its terminal were within the scope of S.153(1)(c) of Income Tax Ordinance, 2001, and thus tax deducted thereon was the final tax by reason of S.153(3) of Income Tax Ordinance, 2001---Validity---Assessee had raised important questions of law of general importance, including the question regarding conflict between S.53 of Income Tax Ordinance, 2001, and a provision contained in Second Schedule to Income Tax Ordinance, 2001---Such questions could arise at any time with reference to any taxpayer, thus constitutional petition could not be dismissed as not maintainable---Various clauses of different parts of Second Schedule to Income Tax Ordinance, 2001, were to apply for indefinite future unless otherwise amended or omitted---No conflict existed in S.53 and clause (42) of Second Sched., Part-IV, to Income Tax Ordinance, 2001, and latter provision was not to be "read down" to avoid any such conflict---Clause (42) of Second Sched., Part-IV, to Income Tax Ordinance, 2001, did not have any application with regard to assessee, therefore, S.153(3) of Income Tax Ordinance, 2001, was applicable and tax deducted on relevant payments was final tax---High Court in exercise of Constitutional jurisdiction, quashed and set aside the show cause notice and order of Income Tax Tribunal, to the extent the same sought to bring to tax payments received by assessee by way of operation of oil terminals by reference to or application…