January 27, 2023

The Lahore High Court (LHC) accepted the apology of FBR Member Inland Revenue (Policy) on Wednesday and adjourned the case of “tax on deemed income” until 27 September 2022. LHC expressed doubt on the competence of Member (Policy), holding this post, on 19 September.

“Lack of assistance on 19 September 2022 was not intentional, therefore, remarks noted in the order may kindly be expunged,” the Lahore High Court (LHC) has said.

Advocate Chaudhary Anwarul Haq has filed the petition on behalf of Muhammad Osman Gull and others in the LHC. Learned counsel representing FBR has also undertaken to file a reply besides assisting on the question regarding interim relief to the petitioner and other taxpayers.

The petition was filed on the premise of legislative incompetence of the Parliament to enact law outside the scope of Entry 50 of the Federal Legislative List, Fourth Schedule of the 1973 Constitution.

The Court has tried to understand from the learned counsel for the FBR, how an amendment in tax laws would be made. He told the Court that this aspect is looked into by Secretary Law. The answer is again that Secretary Law looks into this matter and other decision-making and policy matters regarding taxpayers.

In presence of the level of assistance rendered by Member (Policy), Mirza Nasar Ahmad, Additional Attorney General, is confronted why the judgment in Federation of Pakistan v Aitzaz Ahsan and another (PLD1989 SC61) should not be distinguished and impugned provision be suspended till final decision in the matter.

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