Law: Income Tax Ordinance, 2001

Section: 53,53(2),153(6B)

EDITOR'S NOTE It is cardinal principle of law that delegated powers given for the purpose of section 53 of the Income Tax Ordinance, 2001 cannot be used, rather abused, for disadvantage of the taxpayers. Government or FBR can reduce the tax burden but cannot enhance the same. They cannot go beyond the command of law- can give relief but not amend the law unfavourably. Inspire of this settled law, FBR committed a gross violation of law that has been disapproved by the apex court. FACTS/HELD 1. Leave to appeal was granted to consider, inter alia, whether the notification SRO No. 847(I)/2007 dated 27.8.2007 issued by Government of Pakistan (Revenue Division), Central Board of Revenue, Islamabad was ultra vires the provisions of sub-Section (2) of Section 53 of the Income Tax Ordinance No.XLIX/2001 and whether the ratio laid down by this Court in the case of Central Insurance Company and others v. Central Board of Revenue, Islamabad, etc. (1993 SCMR 1232) was distinguishable on the facts and circumstances of the present case. 2. Petitioners argue that FBR has valid delegated authority to amend law. Respondents countered that delegatee cannot travel beyond the law. It is held that: a. It is well settled principle of law that a delegatee who has been empowered to exercise powers on behalf of the principal, arising out of the legislation is not allowed to go beyond the boundaries prescribed by the legislation itself, namely that in exercise of the delegated powers neither the main legislation can be amended nor any provision can be made therein. b. Clause (46B) has travelled beyond the scope of Section 153(6B) of the Ordinance. c. Addition of clause (46B) by amending the Second Schedule in the exercise of delegated powers was not permissible. d. The of the High Court is plainly correct to which no exception can be taken Appeal allowed. JUDGMENT IFTLKHAR MUHAMMAD CHAUDHRY, C.J. Listed appeals by leave of the Court are directed against the order dated 20.6.2008 in Writ Petition No. 7252/07 etc. 2010. Leave granting order, for ease of reference, is reproduced herein below:- "After hearing the learned counsel for the petitioners, we grant leave to appeal to consider,…

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