IRFAN HUSSAIN HALAI vs FEDERATION OF PAKISTAN through Secretary, Revenue Division, Ministry of Finance S

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IRFAN HUSSAIN HALAI VS FEDERATION OF PAKISTAN through Secretary, Revenue Division, Ministry of Finance S. 116(2)---Finance Act (IV of 2022), S. 8---Foreign Assets (Declaration and Repatriation) Act (XXX of 2018), S. 14---Constitution of Pakistan, Art. 142 & Fourth Schedule, Entry No. 50---Levy of tax--Federal Legislative List---Foreign assets---Section 8 of Finance Act, 2022, vires of---Petitioners/resident taxpayers assailed levy of tax on their foreign assets under the provision of S. 8(2)(b) of Finance Act, 2022---Plea raised by petitioners/resident taxpayers was that Parliament had no legislative competence to levy such tax on foreign assets---Validity---Plea that "immoveable property" was not within the legislative competence of the Parliament, was completely out of the box---Such subject was though within the competence of the Parliament but was qualified to whatever had been so stated in Entry 50 of Fourth Schedule to the Constitution and that was not including taxes on immovable property, falling within the territorial limits of the Province ---Such provision could not be read in isolation by holding that use of the words not including taxes on immovable property would also mean and exclude the subject in its entirety from the competence of the Parliament---This would be reading into what was not provided by the legislature---Any property which was beyond the territorial limits of the Province (including any property outside Pakistan) would still remain within the competence of the Parliament for the purposes of imposition of tax in terms of Entry 50 of the Federal Legislative List of Fourth Schedule to the Constitution---Levy in question was not on the property itself, it was on the capital value of the asset of a resident person holding it---Such property was a subject matter of wealth statement of resident person, filed under S. 116(2) of Income Tax Ordinance, 2001, which statement was a mandatory requirement for filing of an Income Tax Return under Income Tax Ordinance, 2001---Law in question was though extra-territorial in one sense; however applied to a resident person filing an income tax return in Pakistan---Foreign asset in question was part of the asset of the resident person---Taxing event as well as the person was within the territorial limits and was already subject to taxation under the laws of Pakistan---Property in question was part of the wealth of the resident person---It was immaterial that it was so pursuant to a Declaration under Foreign Assets (Declaration and Repatriation) Act, 2018 or otherwise, but for the purposes of a person's wealth it had become part and parcel of it---Tax in question was a tax on the capital value of such asset, which was within the competence of the Parliament---Pursuant to Foreign Assets (Declaration and Repatriation) Act, 2018, petitioners/resident taxpayers as well as other taxpayers availed such amnesty and after paying requisite tax, they declared their properties under their Wealth Tax Returns---Such properties had become part of Wealth Tax Returns of petitioners/ resident taxpayers---There was a nexus of such properties with income and wealth of petitioners/resident taxpayers and there was no impediment or restriction for the Parliament to levy tax in question---High Court declined to declare provision of S. 8 of Finance Act, 2022, as ultra vires the Constitution---Constitutional petition was dismissed, in circumstances. Citation Name: 2024 PTD 1478 KARACHI-HIGH-COURT-SINDH IRFAN HUSSAIN HALAI VS FEDERATION OF PAKISTAN through Secretary, Revenue Division, Ministry of Finance Holistic interpretation---Words should be read in their ordinary, natural and grammatical meaning subject to the rider that in construing words in a Constitution conferring legislative power the most liberal construction should be put upon the words so that they may have effect in their widest amplitude---Interpretation of any provision of the Constitution is true and perfect only when the Court looks at the Constitution holistically and keeps in view all important and significant features of the Constitutional scheme constantly reminding itself of the need for a harmonious construction lest interpretation placed on a given provision has the effect of diluting or whittling down the effect or the importance of any other provision or feature of the Constitution. Citation Name: 2024 PTD 1478 KARACHI-HIGH-COURT-SINDH IRFAN HUSSAIN HALAI VS FEDERATION OF PAKISTAN through Secretary, Revenue Division, Ministry of Finance arts. 142(c) & 142(d)---Residuary provisions---Scope---Provisions of art. 142 (c) of the Constitution not only make specific provision for exclusive legislative domain in respect of "residuary subjects" (i.e. subjects/entries left out of Federal Legislative List) over respective provincial territories of Provincial assembly, but it also recognizes exclusive domain of Federal Legislature over "residuary subjects" in respect of territories or areas 'not included in any province' by operation of art. 142(d) of the Constitution which includes Islamabad Capital Territory. Citation Name: 2024 PTD 1478 KARACHI-HIGH-COURT-SINDH IRFAN HUSSAIN HALAI VS FEDERATION OF PAKISTAN through Secretary, Revenue Division, Ministry of Finance art. 142 (d) & Fourth Schedule [as amended by Constitution (Eighteenth amendment) act (X of 2010)]---Federal Legislative List---Scope---What is not within the competence of Province stand reverted to the Parliament---Parliament has exclusive powers to make laws under art. 142(d) of the Constitution with respect to all matters pertaining to such areas in the Federation as are not included in any Province---Parliament has competence to legislate in respect of all fields of legislation, which are either enumerated in Federal Legislative List or otherwise---Only condition which has to be met is that such law should not be in respect of any area, which is included within the Province.

IRFAN HUSSAIN HALAI vs FEDERATION OF PAKISTAN through Secretary, Revenue Division, Ministry of Finance S — 2024 PTD 1478 KARACHI-HIGH-COURT-SINDH

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