Mrs. SHEHLA TARIQ SAIGOL vs FEDERATION OF PAKISTAN through Secretary Finance Powers of appellate Court

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Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance Powers of appellate Court---Scope---appeal is continuation of suit (lis) and appellate Court is vested with all power and jurisdiction vested in Trial Court. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance Federal Constitution---Scope---Pakistan is a federation with four provinces as federating units---There is division of power at central and provincial level---Federal Constitution establishes a dual polity with the union at the center and provinces at the peripheries and each of them is granted sovereign powers to exercise in fields assigned to them under the Constitution. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance S. 8(2)(b)---Foreign assets (Declaration and Repatriation) act (XXX of 2018) Ss. 3 & 8---Constitution of Pakistan, arts. 141 & Fourth Schedule, Entry No. 51---Foreign assets of resident individuals---Levy on immovable property---Federal Legislature, competency of---appellants / resident individuals were aggrieved of levy of Capital Value Tax on their foreign assets---Plea raised by appellants / resident individuals was that Federal Government was not competent to impose such tax---Validity---Parliament has power to make laws given in Federal Legislative List as well as the matters pertaining to such areas which are not included in any Province---Parliament under art. 141 of the Constitution has power to make laws having extra-territorial operation for whole or any part of Pakistan and Provinces can make laws within their territorial limits---When it is not within the competence of any of the Province to impose tax in connection with a subject-matter, on account of its restriction of territorial limits, then the Parliament has competence in such regard---Provincial Legislature can tax immovable property which is located within its territories---Suitable laws exist or have been made by relevant Provincial Legislative authorities in such regard---Tax in question is to be paid by resident individuals on their foreign assets, as defined in S.8(13)(c) of Finance act, 2022, when such assets have aggregate value exceeding rupees one hundred million---Provision of S.8(2)(b) of Finance act, 2022 refers to assets, which fall within the territorial limits of Provinces---appellants were seeking complete escape from the tax, by adopting incorrect approach towards arts. 141 and 142 of the Constitution and also by misinterpreting Entry-50 of Fourth Schedule to the Constitution as to competence of the Parliament to legislate---Referee Judge was in consonance with the view adopted by anwaar Hussain, J. and dismissed the Intra Court appeal. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance Fourth Sched.---Entries in Legislative Lists---Scope---Entries in Legislative Lists should be given broad and liberal interpretation---Such entries are not source of legislative power but fields of legislative heads. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance S. 8(2)(b)---Foreign assets (Declaration and Repatriation) act (XXX of 2018), Ss. 3 & 8---Constitution of Pakistan, arts. 141 & Fourth Schedule, Entry No.50---Law Reforms Ordinance (XII of 1972), S. 3---Intra Court appeal---Capital Value Tax---Foreign asset---Imposing of tax---Federal Government---Competence---Petitioners / taxpayers were aggrieved of imposing of taxes on their foreign assets---Validity---Federal Legislature is vested with legislative competence to tax capital value of asset with the exception relating to immovable property---Capital value of immovable property falls with the provincial legislative competence and it has been circumscribed by territorial limits of provinces and immovable property not falling within territorial confines of province ipso facto is not susceptible to any provincial legislation---Provision of art. 141 of the Constitution vesting legislative competence in Federal Legislature to make laws having extra-territorial application comes into play---There is no ambiguity and / or conflict inter se art.141 of the Constitution and Entry- 50 of Fourth Schedule to the Constitution, as it is the finish-line of the exception in Entry-50 which gives way to the starting line of art.141 of the Constitution---In Entry-50 of the Fourth Schedule to the Constitution, the Parliament has been given power to legislate in respect of taxes on capital value of assets---To limit such power, particularly when Provincial Legislature is clearly not competent to legislate in respect of the same (to the extent of foreign immovable properties) would amount to placing the narrowest and the most restrictive interpretation on Entry-50 of Fourth Schedule to the Constitution which runs contrary to the scheme of the Constitution and principles of Constitutional interpretation enunciated by Courts of the country----Power to levy Capital Value Tax under Entry-50 of Fourth Schedule to the Constitution did not vest with Provinces in relation to foreign immovable properties owned by residents but with the Federal Legislature---Intra Court appeal was dismissed, in circumstances. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance S. 8(2)(b)---Constitution of Pakistan, Arts. 141 & Fourth Schedule, Entry No. 51---Foreign assets of resident individuals---Levy on immovable property---Federal Legislature, competency of---Words “not including taxes on immovable property” in Entry-50 of Fourth Schedule to the Constitution---Applicability---Appellants / resident individuals were aggrieved of levy of Capital Value Tax on their foreign assets---Plea raised by appellants / resident individuals was that Federal Government was not competent to impose such tax---Validity---Words “not including taxes on immovable property” in Entry 50 of Fourth Schedule to the Constitution had relevance and nexus to the first clause of the Entry-50 and had excluded Capital Value Tax and its imposition on immovable property---Provision of S.8 (2)(b) of Finance Act, 2022 imposed Capital Value Tax on foreign assets, which included other assets apart from immovable property---Scheme of Entry-50 of Fourth Schedule to the Constitution is that there is an enumeration of a subject matter out of which an exception has been carved out---Part of tax in Entry-50 of Fourth Schedule to the Constitution, is for Provincial Assembly to impose---Reference to a genre of tax on one entry of Fourth Schedule to the Constitution is to the same tax throughout and not to two or more different taxes---Conclusion of Judge in Chambers of High Court would imply that there were two different taxes amalgamated in Entry-50 of Fourth Schedule to the Constitution one was the CVT on assets and the other was taxes on immovable property, which was perverse and irrational---Judgment of Judge in Chambers of High Court to the extent it upheld the levy of S.8 (2)(b) of Finance Act, 2022 was set aside---Provision of S.8 (2)(b) of Finance Act, 2022 was struck down as the same was un-Constitutional---Authorities were directed to refund the tax recovered under S.8 (2)(b) of Finance Act, 2022---Intra Court Appeal was allowed accordingly. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance Duty of Court---Principle---Court's duty to act decisively to end a patently un-Constitutional legislation is no less important than the Court's duty to lean in favour of Constitutionality of a statute. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance art. 201---Judgment of High Court---Doctrine of precedent---Scope---Doctrine of precedent requires that judgment of a coordinate High Court of a different Province on the same issue must be followed unless it is irrational or perverse in its reasoning---More so because Striking down of a provision in a law which applies across Pakistan by one High Court of a Province would give rise to an unsavory situation if not followed by a High Court of another Province particularly in matters of taxation. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance O.XLI, R.33---appellate jurisdiction---Party not present before Court---Scope---High Court under the provisions of O. XLI, R. 33, C.P.C. can exercise appellate powers in favour of all or any of the respondents or parties though such respondents or parties may not have filed any appeal or objection. Citation Name: 2025 PTD 313 LAHORE-HIGH-COURT-LAHOREBookmark this Case Mrs. SHEHLA TARIQ SAIGOL VS FEDERATION OF PAKISTAN through Secretary Finance Ss. 3 & 8---Foreign asset---Existence of foreign asset or income outside Pakistan is recognized under Foreign Assets (Declaration and Repatriation) Act, 2018---Consequence of Ss. 3 & 8 of Foreign Assets (Declaration and Repatriation) Act, 2018 is that the compliance thereof represents payment of tax under Income Tax Ordinance, 2001, for all past years and any proceeding under any law for the time being in force, before income tax authorities or any other authority which could have been initiated with respect to such assets put to rest as past and closed transaction---No restriction has been provided under Foreign Assets (Declaration and Repatriation) Act, 2018 that such assets are immune to any further taxation as and when the Legislature imposes the same in accordance with law.

Mrs. SHEHLA TARIQ SAIGOL vs FEDERATION OF PAKISTAN through Secretary Finance Powers of appellate Court — 2025 PTD 313 LAHORE-HIGH-COURT-LAHORE

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