Law:

Section:

Constitution of Pakistan (1973)-Art.185(3)--Income-tax Act (XI of 1922), S.24-B--Recovery of income-tax--Income from Waqf property--Petitioner Mutawallis required to pay arrears of tax left unpaid by previous Mutawalli--Being of first impression and raising question of law of public importance, leave to appeal granted to consider validity of view taken by High Court in upholding demand--Question whether petitioners who were not executors or administrators or legal representatives of deceased Mutawalli but had been maintained by him, were liable to discharge liability of their predecessor Mutawalli. ORDER DORAB PATEL, J.--Both these petitions for leave turn on identical facts and raise the same questions of law. The petitioners in the two petitions are the Mutawallis of a Waqf created by .the late Khan Bahadur Sh. Muhammad Naqi on 20th April, 1931. The Waqf comprises immovable property known as Naqi Market in The Mall, Lahore and the dedication is to the Khan Bahadur Sh. Muhammad Naqi's children and descendents, but the ultimate benefit is reserved for charitable purposes. According to the terms of Waqf Deed, after the death of Khan Bahadur, Sh. Fayyazuddin was the first Mutawalli and then his son Sh. Rashid­uddin, who was also a beneficiary of the Waqf. Then on the death of Sh. Rashiduddin, the petitioners in the two petitions became the Mutawallis of separate portions of the Waqf property. Now, notices under section 56(5-A) of the Income-Tax Act, 1922 (hereinafter called the said Act) were served both on the late Mutawalli Sh. Rashiduddin and on the tenants of the property for the recovery of income-tax on the income of the Waqf. Apparently, Sh. Rashiduddin failed to comply. with these notices and no action was taken for a time with the result that the arrears have become quite heavy. Similarly, according to learned counsel, the tenants did not comply with the notice served on them, therefore, in the events that happened, notices were served on the petitioners after they became…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492