Law: Income Tax Ordinance, 2001

Section: 4B, 4C

TAGLINE;  Component of income, classified and taxed as final tax under final tax regime, could be further taxed under section 4B of the Ordinance            ORDER;            Essential facts, leading to the filing of this and connected reference application bearing ITR No.76/2024, are that Appellate Tribunal Inland Revenue , Multan Bench, Multan (Tribunal), annulled the liability, imposed on the taxpayer in terms of Section 4B of Income Tax Ordinance, 2001 (“The Ordinance”), while placing reliance on the decision in the case of M/s Fauji Fertilizer Company Limited and another v. Federation of Pakistan and others’ [Writ Petition No.4027 of 2022] – In referred judgment question of applicability of super tax under section 4C of the Ordinance was adjudicated and consequently statutory provision was read-down while interpreting it in the context of finality extended qua the income under final tax regime, though other declarations were made in the case of M/s Fauji Fertilizer Company Limited and another, which may not be relevant for present purposes.                                                               2.          At the outset, we are informed that all Writ Petitions / ICAs, pending before the Lahore High Court, Lahore and Islamabad High Court, Islamabad, touching question of vires of the sections 4B and 4C of the Ordinance, were directed to be transferred to the Supreme Court of Pakistan, in terms of the order of 12.03.2025, passed in C.A. Nos. 1243 to 1549 of 2020 and connected matters.    We read the order, and again read it, and resolved that no directions were issued in the context of proceedings pending before the Commissioner, Commissioner (Appeals), Appellate Tribunal Inland Revenue and High…