The COMMISSIONER IR (LEGAL), RTO, PESHAWAR vs AGE INDUSTRIES (PVT — 2021 SCMR 1362 SUPREME-COURT

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The COMMISSIONER IR (LEGAL), RTO, PESHAWAR VS AGE INDUSTRIES (PVT.) LTD., 97-A INDUSTRIAL ESTATE JAMRUD ROAD, PESHAWAR S. 80C & Second Sched., Pt IV, Cl. 9 [as amended by the Finance Act, 1996]---Presumptive tax regime---Finance Act, 1996 amended Cl. (9) of Part IV of the Second Schedule to the Income Tax Ordinance, 1979 ("Clause 9") by substituting the words "who opts out of" the presumptive tax regime, with the words "unless he opts for" the presumptive tax regime---Question as to whether or not the amendment made to "Clause 9" by the Finance Act, 1996 was procedural in nature and hence would have retrospective effect---Held, that as originally inserted, Cl. 9 gave the choice of opting out of S. 80C of the Income Tax Ordinance, 1979 ('the 1979 Ordinance') if the option, as given in terms of the first proviso, was properly exercised---Thus, S. 80C applied unless the "opt-out" was triggered---In other words, the legal meaning of income stood altered in respect of the payments within the ambit of S. 80C unless the assessee concerned took steps to the contrary---Amendment made to Cl. 9 made by the Finance Act, 1996 reversed this position, and now provided that it was only if the option given in terms of the proviso was exercised that S. 80C applied---In other words, the assessee had to "opt-in" into the Presumptive Tax Regime---If the option was not exercised, the legal meaning of income, even in respect of the payments within the ambit of S. 80C, was not altered---Prior to the amendment, the legal meaning of income stood altered to the extent of S. 80C unless the assessee did something; after the amendment, the legal meaning of income did not stand altered unless the assessee did something---Said two resultant situations were starkly different, and each had a substantive effect that was diametrically opposed to the other---In such circumstances the amendment made to Cl. 9 by the Finance Act, 1996 could not be regarded as procedural, having retrospective effect.

The COMMISSIONER IR (LEGAL), RTO, PESHAWAR vs AGE INDUSTRIES (PVT — 2021 SCMR 1362 SUPREME-COURT

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