| Citation(s) |
|---|
| 2026 SLG 4829 = 2026 SLD 4829 |
Supreme Court of Pakistan
Civil Appeals No. 854 to 862 of 2011 [On appeal from the orders dated 15.04.2011 and 04.05.2011 of the High Court of Sindh, Karachi passed in I.T.R.A. Nos.158 to 160, 296, 297, 298, 227, 228 and 229 /2010]
Presented By: Mr. Justice Yahya Afridi, CJ Mr. Justice Muhammad Shafi Siddiqui Mr. Justice Miangul Hassan Aurangzeb
For the Appellant(s): Dr. Shah Nawaz, ASC. [In CAs.854 to 859/11 [at Islamabad] and CA.484/18] Mr. Muhammad Bilal Bhatti, ASC. [through video-link from Karachi] [In CAs.860 to 862/11, Mr. Irfan Mir Halepota, ASC. 1666 and 1667/13 and 788 [through video-link from Karachi] -789/15] [In CAs.48-50/2014 Mr. Muhammad Siddique Mirza, ASC. & CAs.938-940/2017: [through video-link from Karachi] For the Applicant(s): [In CMAs.8167-8168/16] Syed Naveed Amjad Andrabi, ASC. For Department/FBR: Dr. Ishtiaq Ahmed Khan, Director-General (Law), FBR. [at Islamabad] Mr. Masood Ahmed Gorsi, Additional Commissioner, Inland Revenue. [through video-link from Karachi] For the
Respondent(s): Syed Naveed Amjad Andrabi, ASC. [In C.As.854 to 862/11, 1666 to 1667/13, 788-789/15, and CAs.938 & 940/17] [In C.As.48-50/2014] Mrs. Abida Parveen Channar, AOR. [through video-link from Karachi] [In C.A. 939/17] Mr. Muhammad Idrees, ASC. [In CA 484/18] Mr. M. Makhdoom Ali Khan, Sr. ASC. assisted by Mr. Saad Mumtaz Hashmi, ASC. Mr. Yawar Mukhtar, Advocate. Ms. Naila Irshad, Advocate. Mr. Abdullah Sajid, Advocate. Dates of Hearing: 1 to 4 and 10 June, 2026.
Civil Appeals No. 854 to 862 of 2011 [On appeal from the orders dated 15.04.2011 and 04.05.2011 of the High Court of Sindh, Karachi passed in I.T.R.A. Nos.158 to 160, 296, 297, 298, 227, 228 and 229 /2010]
Presented By: Mr. Justice Yahya Afridi, CJ Mr. Justice Muhammad Shafi Siddiqui Mr. Justice Miangul Hassan Aurangzeb
For the Appellant(s): Dr. Shah Nawaz, ASC. [In CAs.854 to 859/11 [at Islamabad] and CA.484/18] Mr. Muhammad Bilal Bhatti, ASC. [through video-link from Karachi] [In CAs.860 to 862/11, Mr. Irfan Mir Halepota, ASC. 1666 and 1667/13 and 788 [through video-link from Karachi] -789/15] [In CAs.48-50/2014 Mr. Muhammad Siddique Mirza, ASC. & CAs.938-940/2017: [through video-link from Karachi] For the Applicant(s): [In CMAs.8167-8168/16] Syed Naveed Amjad Andrabi, ASC. For Department/FBR: Dr. Ishtiaq Ahmed Khan, Director-General (Law), FBR. [at Islamabad] Mr. Masood Ahmed Gorsi, Additional Commissioner, Inland Revenue. [through video-link from Karachi] For the
Respondent(s): Syed Naveed Amjad Andrabi, ASC. [In C.As.854 to 862/11, 1666 to 1667/13, 788-789/15, and CAs.938 & 940/17] [In C.As.48-50/2014] Mrs. Abida Parveen Channar, AOR. [through video-link from Karachi] [In C.A. 939/17] Mr. Muhammad Idrees, ASC. [In CA 484/18] Mr. M. Makhdoom Ali Khan, Sr. ASC. assisted by Mr. Saad Mumtaz Hashmi, ASC. Mr. Yawar Mukhtar, Advocate. Ms. Naila Irshad, Advocate. Mr. Abdullah Sajid, Advocate. Dates of Hearing: 1 to 4 and 10 June, 2026.
Commissioner Inland Revenue, Karachi [In all cases] … Appellant(s)
VERSUS
M/s EFU General Insurance Limited, Karachi. [In CAs.854 to 856/11] M/s EFU Life Assurance Limited, Karachi. [In CAs.857 to 859/11] M/s Century Insurance Company Limited, Karachi. [In CAs.860 to 862/11] … Respondent(s)
Law: Income Tax Ordinance, 2001
Section: 109, 122(5A)
Law: General Clauses Act, 1897
Section: 24A
SUPREME COURT OF PAKISTAN (Appellate Jurisdiction) JUDGMENT Muhammad Shafi Siddiqui, J. These 20 Civil Appeals, with the leave of the Court, have arisen out of certain judgments and orders rendered on different dates by the High Court of Sindh, Karachi, whereby several Income Tax Reference Applications filed by the appellant (Commissioner Inland Revenue, Karachi) were dismissed. Although facts of these appeals are distinct, but since question of law involved therein is common; therefore, the same are being decided through this judgment. These civil appeals have been heard together and were disposed of by short orders dated 16.06.2026. Before us there are two main impugned judgments of the High Court: Firstly, the impugned judgment dated 15.04.2011, which is a short order followed by detailed reasons dated 06.06.2011, had been challenged before this Court in Civil Appeals No.854 to 856 of 2011 (hereinafter referred to as the ‘former judgment’). The former judgment had been followed by the High Court in a number of Income Tax Reference Applications and Civil Appeals No.857 to 862/2011, Civil Appeals No.1666 and 1667/2013, Civil Appeals No.48 to 50/2014, Civil Appeals No.788 and 789/2015 and Civil Appeals No.938 to 940/2017 arise out therefrom. The second impugned judgment dated 18.04.2017 had its own reasoning and challenged before this Court in Civil Appeal No.484/2018 (hereinafter referred to as the ‘later judgment’). We have heard the learned counsel for the parties and perused the material available on record. The former judgment was decided on a narrower ground, whereas, the later judgment examined such questions from different comprehensions and, notwithstanding certain overlapping observations concerning section 67 read with section 109 of the Ordinance, concluded that the transactions under consideration did not constitute tax avoidance. The earlier bunch of appeals arising out of the former judgment of the High Court raised the following questions, as framed in the memo of reference, which, for convenience, are reproduced below: Whether under the facts and circumstances of…