GOVERNMENT OF SINDH through Secretary/ Director-General, Excise and
This matter arises from a petition for leave to appeal directed against the judgment of the High Court of Sindh, Karachi, which had allowed a constitutional petition filed by the respondent. The core legal question revolves around whether property owned by the Evacuee Trust Property Board and held in possession by a private respondent is exempt from urban immovable property tax under section 4(a) of the Urban Immovable Property Tax Act, 1958, and the proper application of previous case law regarding tax exemption principles. The Supreme Court granted leave to appeal to examine these contentions and ordered the suspension of the operation of the impugned High Court judgment pending the final disposal of the appeal. The holding grants leave to consider the statutory exemption scope and judicial precedents concerning taxation on properties involving evacuee trusts, laying down that the interpretation of tax exemption provisions requires a thorough examination of statutory possession and ownership.
- Whether under section 4(a) of the Urban Immovable Property Tax Act, 1958, the property owned by the Evacuee Trust Property Board which is in possession of respondent Muhammad Shafi is exempt from the tax?
- Whether the High Court had rightly applied the principle of law discussed by the Supreme Court in the case of Mehran Associates Ltd. v. Commissioner of Income Tax, Karachi?
- Section 4(a), Urban Immovable Property Tax Act, 1958
ORDER
' IFTIKHAR MUHAMMAD CHAUDHRY, J.---This petition for leave to appeal is directed against the judgment dated 24th August, 2001 passed by High Court of Sindh, Karachi whereby Constitutional petition filed by respondent No,1 has been allowed.
2. We have heard learned counsel for parties and have also gone through the record so made available.
3. Leave to appeal is granted, inter alia, to consider:--
(a) Whether under section 4(a) of the Urban Immovable Property Tax Act, 1958, the property owned by the Evacuee Trust Property Board which is in possession of respondent Muhammad Shafi is exempt from the tax?
(b) Whether the learned High Court had rightly applied the principle of law discussed by this Court in the case of Mehran Associates Ltd. v. Commissioner of Income Tax, Karachi 1993 SCM R 274: 1993 PTD 69?
3. Civil Miscellaneous Application No,157-K of 2002 is allowed. Operation of impugned judgment dated 24th August, 2001 passed by Division Bench of the High Court of Sindh at Karachi in Constitutional Petition 1807-D of 1999 is suspended till final disposal of the appeal, arising out of instant petition. Office is directed to fix this appeal at an early date, subject to soliciting necessary approval from Honourable Chief Justice.