Law: Wealth Tax Act, (XV of 1963)

Section: 2(m),6

Wealth Tax Act (XV of 1963)- ---Ss.2 (m) & 3--Constitution of Pakistan (1973, Art. 185 (3)--Term "net wealth"--Two independent earning spouses separately assessed to income-tax-­Each spouse constructing a separate house at the cost less than the limit of rupees five lakhs--Clubbing properties of two independent earning spouses together for the purposes of Wealth Tax Act whether permissible--Petitioner's contention was that clubbing 9f properties of two independent earning spouses was repugnant to the charging S.3 and was thus ultra virus; that Wealth Tax Act did not envisage evaluation which was in excess of what was invested unless investment was realized; that the case involved no factual controversy and the question raised only related to interpretation of statutes, Constitutional petition thus should not have been dismissed on the ground that alternate remedies were open to petitioner as per dictum of Supreme Court in cases reported as P L D 1971SC205 ;PLD1962SC113; PLD1962SC440; and PLD1968SC131 -­Questions raise being of substantial legal importance likely to affect large number of case, leave to appeal was granted. JUDGMENT ABDUL KADIR SHAIKH, J.--The two petitioners who are husband and wife are officers of the Armed Forces of Pakistan and are independent assessees in respect of their income from salary and other sources. In 1978, each constructed a separate house being No.32/B/II and 32/B/I, situated on Circular Road, Defence Housing Society, Karachi. According to petitioners, each property having been constructed at 'the cost of about 3.5 lakhs falls within the limit of Rs.5 lakhs under the Wealth Tax Act, 1963 and both cannot be clubbed together under the provisions of Exception 1 to section 2 (m) of the Act. Petitioners raised these pleas in an application addressed to the Wealth Tax Officer, Karachi who however rejected it under letter dated 30-12-1984 on the ground that the valuation of the properties for the purposes of wealth tax is to be 10 times of the gross annual rental value which was determined: at Rs.72,000 and Rs.51,000 respectively. As regards the clubbing of the properties learned Wealth Tax Officer referred to Explanation to clause…

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