ISLAMABAD: The Federal Board of Revenue (FBR), Tuesday, assured the Lahore High Court (LHC) that it will give an extension of time to the taxpayers to file income tax returns, who feel aggrieved by the impugned Section 7E of the Income Tax Ordinance, 2001.
The petitioner has questioned the constitutionality of Section 7E – the 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.
According to an order of the LHC in writ petition 52559 of 2022 (Muhammad Osman Gull versus the Federation of Pakistan), the reply has been filed by the federal government, as well as, the office of the Attorney General for Pakistan. The reply on behalf of the FBR has also been filed.
Regarding interim relief, Badshah Khan Wazir, chief commissioner Large Taxpayer Office (LTO), Lahore, on the instructions from the FBR chairman, states that the petitioners in this and connected petitions or any other taxpayer, feeling aggrieved from the impugned Section 7E of the Income Tax Ordinance, 2001 (“Ordinance of 2001”), if approaches with an application in writing, under the law, for extension of time to file return, the same shall be entertained and time shall be granted.
However, it is clarified that the taxpayer shall establish before the concerned Commissioner that he falls within the mischief of impugned Section 7E of the Ordinance of 2001. The LHC has re-listed the case for October 18, 2022.
Copyright Business Recorder, 2022