Messrs AL-BARKAT INDUSTRIAL CORPORATION LIMITED, FAISALABAD through Sh. Abdus Salam, Director vs FEDERATION OF PAKISTAN through Secretary, Ministry of Finance, Islamabad and others
This matter concerns a petition for leave to appeal before the Supreme Court of Pakistan regarding the validity of specific taxation provisions. The core legal question involves the constitutionality and interpretation of Sections 80-C, 80-CC, and 80-D of the Income Tax Ordinance. The Court, noting that leave to appeal had already been granted in several connected petitions raising identical legal questions, granted leave in the instant petition as well. Furthermore, recognizing that the matter necessitated the construction of constitutional provisions, the Court ordered that notice be issued to the Attorney-General of Pakistan pursuant to the relevant procedural rules. Regarding interim relief, the Court held that the recovery of the disputed tax would remain suspended during the pendency of the appeals, provided the petitioners furnish an undertaking to pay the tax as levied or leviable under the aforementioned sections, along with interest at a rate of 2% above the bank rate, should the appeals be ultimately dismissed. The Court also directed that the appeal be scheduled for an early hearing due to its impact on federal finances.
- Under what conditions may the recovery of tax be suspended during the pendency of an appeal before the Supreme Court?
- Is notice to the Attorney-General mandatory when a case involves the construction of the Constitution and the validity of statutory tax provisions?
- Does the granting of leave to appeal in connected matters justify the grant of leave in a similar pending petition?
- Section 80-C, Income Tax Ordinance 1979
- Section 80-CC, Income Tax Ordinance 1979
- Section 80-D, Income Tax Ordinance 1979
- Rule 1, Order XXVII, Code of Civil Procedure 1908
ORDER
ABDUL HAFEEZ MEMON, J.---Syed Abul Aasim Jafri, Advocate-on-Record, points out that on the same question, as involved in this petition, several petitions, including Civil Petitions Nos.234-L/95, 235-L/95, 241-L/95, 244-L/95, 252-L/95, 255-L/95, 274-L195, 275-L/95 and 279-L/95, leave has been granted and stay has also been granted. He, therefore, submits that this petition may also be admitted and stay in the same terms, as in other petitions, may also be granted.
2. In view of the leave having been granted in the aforesaid petitions, we grant leave in this petition.
3. As the question raised will have bearing upon the validity of sections 80-C, 80-CC and 80-D, Income Tax Ordinance, and need construction of the Constitution, notice be issued to the Attorney- General as required by Rule 1, Order XXVII, Civil Procedure Code.
4. During the pendency of the appeals, if the petitioners undertake that they shall pay the tax as levied or leviable under sections 80-C, 80-CC and 80-D of the Income Tax Ordinance with interest at the rate of 2% above the bank rate, in the event the appeals are dismissed, the recovery of the tax shall remain suspended.
5. As the appeal involves the finances of the Federal Government, this should be heard at an early date.