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ISLAMABAD:
The Supreme Court on Tuesday clarified that the constitutional bench was only interpreting tax laws and could not address violations under Article 191-A.
The apex court heard multiple petitions related to the super tax.
During the proceedings, counsel for the taxpayers, Adnan Haider, completed his arguments before a five-member constitutional bench, led by Justice Aminud Din Khan.
The bench comprised Justice Jamal Mandokhail, Justice Muhammad Ali Mazhar, Justice Hassan Azhar Rizvi, and Justice Shahid Bilal Hassan.
Justice Muhammad Ali Mazhar observed that the tax law of 2022 would apply to the financial year ending on December 31, 2021. “Your profit must be derived from the financial statement,” he remarked while addressing the counsel.
During the hearing, the bench summoned officials of the Federal Board of Revenue (FBR) to the rostrum and enquired whether the tax was imposed on an 18-month statement or a 12-month basis.
The FBR officials clarified that the tax, whether special or regular, was applied on a 12-month basis.
Counsel Adnan Haider contended that his company’s financial statement ended in December 2021, therefore the tax law of 2022 should apply. However, he argued that the FBR was collecting tax under the 2023 law.
Justice Muhammad Ali Mazhar remarked that the counsel appeared to be shifting his stance and was unclear about the basis for the tax’s application.
The counsel further submitted that while the FBR hesitated to grant exemptions, it acted promptly when collecting taxes.
He argued that any charge or exemption should apply within the same fiscal year.
He further suggested that if all related cases were to be decided by the same bench, the tribunal cases should also be heard by it.
Justice Mazhar clarified that the constitutional bench was only interpreting tax laws and could not address violations under Article 191-A.
Later, the court adjourned further hearing of the case until Wednesday (today).
