ISLAMABAD: The Lahore High Court (LHC) on Wednesday adjourned the case about tax on deemed income till September 27, 2022, and directed the Federal Board of Revenue (FBR) to respond to the question of providing interim relief to the taxpayers.
The hearing of the case (writ petition 52559 of 2022) was held on Wednesday at the LHC.
According to the order, Khalid Ishaq, Advocate representing FBR and Member Inland Revenue (Policy), FBR present in the Court, at the outset, submits that lack of assistance on September 19, 2022, was not intentional, therefore, remarks noted in the order may kindly be expunged.
"Suffice it to observe that the observations in order dated September 19, 2022 may not be taken as adverse remarks for any official or private purpose", the LHC’s order said.
Khalid Ishaq, Advocate on behalf of the FBR is confronted with the question regarding interim relief to the petitioner and other taxpayers till a final decision, he requests for a short adjournment. 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 petitioner has questioned the constitutionality of Section 7E – tax on deemed income of the Income Tax Ordinance, 2001, inserted through the Finance Act, 2022 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.
Copyright Business Recorder, 2022