SALEEM CHAUDHRY TEXTILE MILLS (PVT.) LTD. vs FEDERATION OF PAKISTAN And Other
This matter arises from petitions for leave to appeal before the Supreme Court of Pakistan concerning the levy of taxes under the Income Tax Ordinance. The core legal question involves the validity and applicability of tax provisions under sections 80-C, 80-CC, and 80-D of the Ordinance. The Court granted leave to appeal to examine the questions of law raised, ordering that all related appeals be heard together after notice to the Attorney-General. As for the holding, the Court decided that during the pendency of the appeals, the recovery of the contested tax shall remain suspended on the condition that the appellants provide an undertaking to pay the tax as levied or leviable under sections 80-C, 80-CC, and 80-D of the Income Tax Ordinance, along with interest at the rate of two percent over the Bank rate, should the appeals ultimately be dismissed. The key principle laid down relates to the conditional suspension of tax recovery pending final adjudication of tax appeals.
- Under what conditions can the recovery of tax levied under sections 80-C, 80-CC, and 80-D of the Income Tax Ordinance be suspended during the pendency of an appeal?
- What rate of interest is applicable on the payable tax if the appeals regarding tax levy under the Income Tax Ordinance are dismissed?
- Section 80-C, Income Tax Ordinance
- Section 80-CC, Income Tax Ordinance
- Section 80-D, Income Tax Ordinance
ORDER
SAAD SAOOD JAN, J.---Leave to appeal has already been granted in Civil Petitions Nos.349 to 363- L of 1995 and others to consider the same questions of law as arise in these petitions For that reason leave is also granted in these petitions. All the appeals should be heard together after notice to the Attorney-General.
2. During the pendency of the appeals if the appellants 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% over the Bank rate in the event the appeals are dismissed, the recovery of the tax shall remain suspended.