Messrs AL-BARKAT INDUSTRIAL CORPORATION LIMITED, FAISALABAD through Sh. Abdus Salam, D i rector vs FEDERATION OF PAKISTAN through Secretary, Ministry of Finance, Islamabad, and others
This petition for leave to appeal before the Supreme Court of Pakistan concerns the validity of Sections 80-C, 80-CC, and 80-D of the Income Tax Ordinance, which also necessitates the interpretation of the Constitution. The petitioner sought leave and a stay of recovery, noting that the Supreme Court had already granted leave and stay in several connected petitions involving the same legal questions. Finding merit in the request for consistency, the Court granted leave to appeal. Furthermore, the Court directed that notice be issued to the Attorney-General pursuant to the requirements of the Civil Procedure Code. Regarding the interim relief, the Court ordered that the recovery of the tax in question shall 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 ultimately be dismissed. The Court also prioritized the hearing of the matter due to its impact on Federal Government finances.
- Can the recovery of tax be suspended pending the final adjudication of an appeal challenging the validity of tax provisions?
- Is notice to the Attorney-General mandatory when a petition raises questions regarding the validity of statutory provisions and constitutional interpretation?
- Under what conditions may a court grant a stay on the recovery of tax during the pendency of an appeal?
- Section 80-C, Income Tax Ordinance
- Section 80-CC, Income Tax Ordinance
- Section 80-D, Income Tax Ordinance
- 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, 235- L, 241-L, 244-I , 252-L, 255-L, 274-L, 275-L and 279-L of 1995, 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.