MILLENNIUM MALL MANAGEMENT CO. vs PAKISTAN through Secretary, Ministry of Defence Ss

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

MILLENNIUM MALL MANAGEMENT CO. VS PAKISTAN through Secretary, Ministry of Defence Ss. 60, 80, 106 & 109---Cantonments (Urban Immovable Property Tax and Entertainments Duty) Order (P.O. No. 13 of 1979), Art. 3---Income Tax Ordinance (XLIX of 2001), S. 15A---Constitution of Pakistan, Fourth Sched., Part I, Entry No. 50 [as amended by Eighteenth Amendment to the Constitution]---Federal Legislative List---Property tax, recovery of---Jurisdiction of Cantonment Boards---Tax, utilization of---Petitioners/owners of properties assailed tax demand based on annual rental value of property by respondents/Cantonment Boards---Validity---Taxes on immovable properties had been excluded from the domain of the Federation, the Federal Legislature and consequently respondents/Cantonment Boards could not levy, impose, charge and/or recover such taxes as levied by it on immovable properties from the date of restoration of the Constitution and more particularly after Eighteenth Amendment to the Constitution, either under Cantonments Act, 1924 or under Cantonments (Urban Immovable Property Tax and Entertainments Duty) Order, 1979---Such levy by respondents/Cantonment Boards had been initiated in terms of Cantonments Act, 1924---Laws on the basis of which respondents/ Cantonment Boards were recovering taxes opposed the Constitutional/ Legislative competence and was beyond their legal powers and capacity, which was ultra vires under existing frame of the Constitution on legislative competence---There is no special provision for a tax on annual rental value of immovable property to be utilized as an "expenditure" under Cantonments Act, 1924, thus general provisions of Income Tax Ordinance, 2001 cannot be applied---"Tax" per se on immovable property, under S. 15A of Income Tax Ordinance, 2001 can be utilized or adjusted as "expenditure"---This is a general provision for all levies on property and is not specific to any particular fee or tax and a direct nexus of subject tax can be a misapplication---Power to levy, charge, impose and recover any or all taxes separately on immovable property is an alien object under Cantonment laws in existing frame of the Constitution---Tax on annual rental value of immovable property was a tax and not a fee or any other genre of levy---Respondents/Cantonment Boards had no power to levy tax on immovable property including tax on annual rental value of immovable property---After revival of the Constitution, and Eighteenth Amendment to the Constitution, provisions of Cantonments (Urban Immovable Property Tax and Entertainments Duty) Order, 1979 had no effect on the subject---Subject law to the extent of provision of S. 3 of Cantonments (Urban Immovable Property Tax and Entertainments Duty) Order, 1979 was no longer protected---High Court declared that after Eighteenth Amendment to the Constitution, Entry 50 in Fourth Schedule to the Constitution was amended, consequently Federation and all Cantonment Boards lacked competence, power and jurisdiction to levy, charge, impose and recover any or all taxes on any immovable property, including but not limited to tax on annual rental value of immovable property---High Court further declared that Eighteenth Amendment to the Constitution consequently restored competence and jurisdiction of Province to levy, charge, recover and legislate on subject so identified and to pursue it accordingly---High Court directed that amounts so recovered by Cantonment Boards under subject of tax in question, since Eighteenth Amendment to the Constitution also called for an account---Constitutional petition was allowed accordingly.

MILLENNIUM MALL MANAGEMENT CO. vs PAKISTAN through Secretary, Ministry of Defence Ss — 2025 PTD 954 KARACHI-HIGH-COURT-SINDH

Case information

Judgment text as reported

Other judgments reported in 2025 PTD