CIVIL AVIATION AUTHORITY OF PAKISTAN vs FEDERATION OF PAKISTAN Ss — 2024 CLD 1518 KARACHI-HIGH-COURT-SINDH

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CIVIL AVIATION AUTHORITY OF PAKISTAN VS FEDERATION OF PAKISTAN Ss. 2 (e)(ii) & 3---Rules of Business, 1973, R. 8(2)---Income Tax Ordinance (XLIX of 2001), Ss.54 & 134A [as amended by the Finance (Amendment) Act, 2024]---Inter Division Procedure---Alternate Dispute Resolution---State-owned enterprise---Tax exemption, dispute of---Petitioner / Civil Aviation Authority claimed that it was exempted from levy of income tax and that it was not obliged to follow Alternate Dispute Resolution---Validity ---Petitioner was an authority generating its revenue from selling services on a commercial basis, therefore, provision of S. 2(e)(ii) of State-Owned Enterprises (Governance and Operations) Act, 2023 was fully attracted---Petitioner / Authority was being run on a commercial basis and was controlled or managed by Federal Government---Petitioner / Authority was covered by State- Owned enterprises (Governance and Operations) Act, 2023---Internal mechanism under S.134A of Income Tax Ordinance, 2001, was evolved for quick disposal of tax disputes between State-Owned Enterprises and Federal Board of Revenue, as in any such disputes, it was, in fact, the Federal Government who was the ultimate loser, by way of litigation costs besides delay in settlement of such disputes from Courts of law---High Court declined to exercise its discretion under Art. 199 of the Constitution so as to adjudicate the matter on merits---High Court directed petitioner / Authority to either avail Alternate Dispute Resolution mechanism under S. 134A of Income Tax Ordinance, 2001 or under R. 8(2) of Rules of Business, 1973 and if at all the issue was not resolved by way of such two alternate mechanisms and petitioner / Authority remained aggrieved, then the petitioner / Authority was at liberty to seek remedy as could be available under the law---High Court directed Federal Board of Revenue to form Committee in terms of S.134A(3) of Income Tax Ordinance, 2001, in case petitioner / Authority would opt for Alternate Dispute Resolution in terms of S.134A of Income Tax Ordinance, 2001---High Court directed Inland Revenue authorities to halt recovery proceedings under S.134A(7) of Income Tax Ordinance, 2001, as soon as a Committee was notified---Constitutional petition was disposed of accordingly.

CIVIL AVIATION AUTHORITY OF PAKISTAN vs FEDERATION OF PAKISTAN Ss — 2024 CLD 1518 KARACHI-HIGH-COURT-SINDH

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