THE SUPREME COURT OF PAKISTAN

(Appellate Jurisdiction)

Present:
Mr. Justice Syed Mansoor Ali Shah
Mr. Justice Jamal Khan Mandokhail
Mr. Justice Athar Minallah

Civil Petitions No. 52, 53, 132 to 143, 189 to 200, 223 to 225, 266 to
273, 282 to 293, 351 to 356, 396 to 417, 441, 451 to 456, 474, 510,
573 to 575 all of 2024 & CMA No. 997/2024
(On appeal against the orders of the Islamabad High Court, Islamabad dated
20.11.2023, 08.12.2023, 27.9.2023 and 4.10.2023 passed in Writ Petition
No.3775, 3772. 2923, 2930, 2943, 2946, 2945, 2958, 3191, 3093, 3099, 3106,
3220, 2937, 2933, 2929, 2945, 2954, 3095, 2963, 2922, 3221, 3108, 2925,
3075, 2964, 2901, 2931, 2951, 2940, 2938, 2935, 2942, 3107, 2928, 2944,
2956, 2941, 2943, 2933, 2945, 2938, 2941, 2953, 2947, 2944, 2940, 2942,
2934, 2948, 2952, 2953, 2955, 2934, 2963, 2922, 2928, 3956, 2929, 2954,
2960, 2923, 2951, 2936, 2921, 2962, 2964, 2921, 2935, 2927, 2946, 2925,
2952, 2931, 2961, 2947, 2927, 2955, 2962, 2966, 2956, 2965, 2958, 2937,
3093, 3099, 3108 and 3956 of 2023)

Commissioner Inland Revenue, L.T.O. Karachi (in CP-52/2024)

Commissioner Inland Revenue, L.T.O. Karachi (in CP-53/2024)
Member (Inland Revenue Operations), Islamabad (in CP-132/2024)
Member (Inland Revenue Operations), Islamabad (in CP-133/2024)
Member (Inland Revenue Operations, FBR, Islamabad (in CP-134/2024)
Member (Inland Revenue Operations), Islamabad (in CP-135/2024)
Member (Inland Revenue Operations), Islamabad (in CP-136/2024)
Member (Inland Revenue Operations), Islamabad (in CP-137/2024)
Commissioner Inland Revenue (Zone-III), Karachi (in CP-138/2024)
Commissioner Inland Revenue, Karachi (in CP-139/2024)
Commissioner Inland Revenue, Karachi (in CP-140/2024)
Commissioner Inland Revenue, Karachi (in CP-141/2024)
Member (Inland Revenue Operations), Islamabad (in CP-142/2024)
Member (Inland Revenue Operations, FBR, Islamabad (in CP-143/2024)
Member (Inland Revenue Operations), Islamabad (in CP-189/2024)
Member (Inland Revenue Operations), Islamabad (in CP-190/2024)
Member (Inland Revenue Operations), Islamabad (in CP-191/2024)
Member (Inland Revenue Operations), Islamabad (in CP-192/2024)
Commissioner Inland Revenue, Karachi (in CP-193/2024)
Member (Inland Revenue Operations), Islamabad (in CP-194/2024)
Member (Inland Revenue Operations), Islamabad (in CP-195/2024)
Member (Inland Revenue Operations, FBR, Islamabad(in CP-196/2024)
Commissioner Inland Revenue, Karachi (in CP-197/2024)
Member (Inland Revenue Operations) FBR, Islamabad (in CP-198/2024)
Member (Inland Revenue Operations) FBR, Islamabad (in CP-199/2024)
Member (Inland Revenue Operations) FBR, Islamabad (in CP-200/2024)
Member (Inland Revenue Operations), Islamabad (in CP-223/2024)
Member (Inland Revenue Operations), Islamabad (in CP-224/2024)
Member (Inland Revenue Operations), Islamabad (in CP-225/2024)
Member (Inland Revenue Operations), Islamabad (in CP-266/2024)
Member (Inland Revenue Operations), Islamabad (in CP-267/2024)
Member (Inland Revenue Operations), Islamabad (in CP-268/2024)
Member (Inland Revenue Operations), Islamabad (in CP-269/2024)
Member (Inland Revenue-Operations), Karachi (in CP-270/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-271/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-272/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-273/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-282/2024)
CP-52 of 2024 etc. title 2

Member (Inland Revenue-Operations), Islamabad (in CP-283/2024)

Member (Inland Revenue-Operations), Islamabad (in CP-284/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-285/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-286/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-287/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-288/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-289/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-290/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-291/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-292/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-293/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-351/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-352/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-353/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-354/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-355/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-356/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-396/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-397/2024)
Federal Board of Revenue through Member
(Inland Revenue-Operations) Islamabad (in CP-398/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-399/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-400/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-401/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-402/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-403/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-404/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-405/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-406/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-407/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-408/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-409/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-410/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-411/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-412/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-413/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-414/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-415/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-416/2024)
Member (Inland Revenue-Operations) FBR, Islamabad (in CP-417/2024)
Member (Inland Revenue-Operations), Islamabad (in CP-441/2024)
Member (Inland Revenue-Operations) Federal
Board of Revenue, FBR House, Islamabad (in CP-451/2024)
Member (Inland Revenue-Operations) Federal
Board of Revenue, FBR House, Islamabad (in CP-452/2024)
Member (Inland Revenue-Operations) Federal
Board of Revenue, FBR House, Islamabad (in CP-453/2024)
Member (Inland Revenue-Operations) Federal
Board of Revenue, FBR House, Islamabad (in CP-454/2024)
Member (Inland Revenue-Operations) Federal
Board of Revenue, FBR House, Islamabad (in CP-455/2024)
Member (Inland Revenue-Operations) Federal
Board of Revenue, FBR House, Islamabad (in CP-456/2024)
Member (Inland Revenue-Operations) Federal
Board of Revenue, FBR House, Islamabad (in CP-474/2024)
Commissioner Inland Revenue, Karachi (in CP-510/2024
& CP-3472/2023)
Commissioner Inland Revenue, Karachi (in CP-573/2024)
Commissioner Inland Revenue (in CP-574/2024)
CP-52 of 2024 etc. title 3

Member (Inland Revenue-Operations) FBR House,

Islamabad. (in CP-575/2024)

…Petitioners

Versus

A.F. Ferguson & Company, Karachi and others (in CP-52/2024)

EY Ford Rhodes, Karachi and others (in CP-53/2024)
Jubilee General Insurance Company Ltd.
Karachi and others (in CP-132/2024)
C.M.A., C.G.M., Pakistan Pvt. Ltd. Karachi etc. (in CP-133/2024)
Sharif Shipping Agency Pvt. Ltd. Karachi etc. (in CP-134/2024)
Prime A.E.P., Ltd. Karachi and others (in CP-135/2024)
Martin Dow Ltd. Karachi and others (in CP-136/2024)
Searle Pakistan Ltd. Karachi and others (in CP-137/2024)
Imtiaz Hussain Abbasi, Islamabad and others (in CP-138/2024)
United Bank Ltd. Karachi and others (in CP-139/2024)
Lottee Chemicals Pakistan Ltd., Karachi and others (in CP-140/2024)
United Bank Ltd. Karachi and others (in CP-141/2024)
Al Haj Pakistan Kirthar B.V. Islamabad and others (in CP-142/2024)
Sanofi Aventis Pakistan Ltd. Karachi and others (in CP-143/2024)
Glaxo Smith Kline Pakistan Ltd. Karachi and others (in CP-189/2024)
ANL. Singapore Pte Limited, Singapore and others (in CP-190/2024)
Prime Pakistan Ltd. Karachi and others (in CP-191/2024)
Searle Pakistan Ltd. Karachi and others (in CP-192/2024)
Meezan Bank Ltd. Karachi and others (in CP-193/2024)
Dawood Hercules Corporation Ltd., Karachi, etc. (in CP-194/2024)
E.F.U. Life Insurance Ltd. Karachi and others (in CP-195/2024)
Al Haj Pakistan Kadanwari Ltd. Ibd. and others (in CP-196/2024)
Standard Chartered Bank Pakistan Ltd. etc. (in CP-197/2024)
MSC Mediterranean Shipping Company etc. (in CP-198/2024)
Soortay Enterprises Pvt. Ltd. Karachi and others (in CP-199/2024)
Dawood Lawrancepur Ltd. Karachi and another (in CP-200/2024)
Engro Vopak Terminal Ltd. Karachi and another (in CP-223/2024)
J&P Coats Pakistan Pvt. Ltd. Karachi and others (in CP-224/2024)
Azmeh Dawood, Karachi and others (in CP-225/2024)
Packages Converters Ltd. Karachi (in CP-266/2024)
Bulleh Shah Packaging Pvt. Ltd. Karachi (in CP-267/2024)
IGI Holding Ltd. Karachi (in CP-268/2024)
Cosco Shipping Lines Pakistan Pvt. Ltd. and others (in CP-269/2024)
Meezan Bank Ltd. Karachi and others (in CP-270/2024)
OOCL Pakistan Pvt. Ltd. Karachi and others (in CP-271/2024)
China Power Hub Generation Company etc. (in CP-272/2024)
Asif Jooma and others (in CP-273/2024)
Al-Ghazi Tractors Ltd. and others (in CP-282/2024)
Sharaf Shipping Agency Pvt. Ltd. Karachi etc. (in CP-283/2024)
Glaxo Smith Kline Pakistan Ltd. Karachi and others (in CP-284/2024)
Prime Pakistan Ltd. Karachi and others (in CP-285/2024)
Bulleh Shah Packaging Pvt. Ltd. Karachi and others (in CP-286/2024)
Al-Ghazi Tractors Ltd. Karachi and others (in CP-287/2024)
Sabrina Dawood and others (in CP-288/2024)
Prime Pakistan (M) Ltd. Karachi and others (in CP-289/2024)
China Power Hub Generation Company etc. (in CP-290/2024)
Packages Converters Ltd. Karachi and others (in CP-291/2024)
Cosco Shipping Lines Pakistan Pvt. Ltd. and others (in CP-292/2024)
Packages Ltd. Karachi and others (in CP-293/2024)
Martin Dow Ltd. Karachi and others (in CP-351/2024)
CP-52 of 2024 etc. title 4

Muhammad Hussain Dawood, Karachi and others (in CP-352/2024)

Sabrina Dawood and others (in CP-353/2024)
Searle Biosciences Pvt. Ltd. Karachi and others (in CP-354/2024)
Packages Ltd. Karachi and others (in CP-355/2024)
Dawood Hercules Corporation Ltd. Karachi etc. (in CP-356/2024)
EFU Life Insurance Ltd. Karachi and others (in CP-396/2024)
OOCL Pakistan Pvt. Ltd. Karachi and others (in CP-397/2024)
Systems Limited Lahore and another (in CP-398/2024)
ANL Singapore Pte Ltd. Singapore and others (in CP-399/2024)
The Searle Company Ltd. Karachi and others (in CP-400/2024)
Abdul Samad Dawood and others (in CP-401/2024)
Abdul Samad Dawood and others (in CP-402/2024)
Jubilee General Insurance Co. Ltd. Karachi etc. (in CP-403/2024)
Azmeh Dawood, Karachi and others (in CP-404/2024)
Tri-pack Films Ltd. Karachi and others (in CP-405/2024)
EFU General Insurance Ltd. Karachi and others (in CP-406/2024)
Dawood Investment Pvt. Ltd. Karachi and others (in CP-407/2024)
Dawood Lawrancepur Ltd. Karachi and others (in CP-408/2024)
EFU General Insurance Ltd. Karachi and others (in CP-409/2024)
IGI Holdings Ltd. Karachi and others (in CP-410/2024)
Orient Overseas Container Line Ltd. and others (in CP-411/2024)
Prime AEP Ltd. Karachi and others (in CP-412/2024)
MCS Mediterranean Shipping Co. S.A. and others (in CP-413/2024)
Muhammad Hussain Dawood, Karachi and others (in CP-414/2024)
J & P Court Pakistan Pvt. Ltd. Karachi and others (in CP-415/2024)
Martin Dow Marker Ltd. Karachi and others (in CP-416/2024)
Prime Pakistan (M) Ltd. Karachi and others (in CP-417/2024)
Orient Overseas Container Line Ltd. and others (in CP-441/2024)
Searle Biosciences Pvt. Ltd. Karachi and others (in CP-451/2024)
Dawood Investment Pvt. Ltd. Karachi and others (in CP-452/2024)
Cyan Ltd. Karachi and others (in CP-453/2024)
Asif Jooma and others (in CP-454/2024)
Cyan Ltd. Karachi and others (in CP-455/2024)
Searle Pakistan Ltd. Karachi and others (in CP-456/2024)
Sanofi Aventis Pakistan Ltd. Karachi and others (in CP-474/2024)
United Bank Ltd. Karachi and others (in CP-510/2024)
Lottee Chemicals Pakistan Ltd. Karachi and others (in CP-573/2024)
Standard Chartered Bank Pakistan Ltd. (in CP-574/2024)
Systems Ltd. and others (in CP-575/2024)

…Respondents

For the petitioner: Mrs. Asma Hamid, ASC

Mrs. Tasneem Amin, AOR

For the respondents: Mr. Farough Nasim, ASC

Mr. Salaman Akram Raja, ASC
Mr. Haider Waheed, ASC
Mr. Hyder Ali Khan, ASC
Mr. Khalid Javed Khan, ASC
Mr. Rashid Anwar, ASC
(through video link from Karachi)
Syed Rifaqat Hussain Shah, AOR
Mr. Ghulam Nabi, AOR

Mr. Haider Waheed, ASC

Syed Rifaqat Hussain Shah, AOR
(in CMA-997/2024 in CP-266/2024)

Date of hearing: 27.02.2024

CP-52 of 2024 etc. title 5

JUDGMENT

Syed Mansoor Ali Shah, J.- The petitioner-department has

challenged two interim orders before us passed by the Islamabad High
Court, Islamabad. These interim orders arise out of the petitions filed
before the Islamabad High Court by the respondents challenging the vires
of Section 4C of the Income Tax Ordinance, 2001 (“Ordinance”) for the
tax year 2023.

2. Giving further background to this case, learned counsel for

the petitioner-department submits that respondent taxpayers operate and
reside in Sindh and Punjab, the said respondents had earlier challenged
the vires of Section 4C for tax year 2022 in their respective provinces
before the Sindh High Court and the Lahore High Court. The Sindh High
Court vide its judgment dated 13.01.2023 upheld the vires of the said
section and same view was taken by the Lahore High Court, however, in
the case of Lahore High Court, ICAs are pending before a Division Bench
of the said court.

3. In this background for the tax year 2023, the said

respondents who operate and reside in Sindh and Punjab decided to
approach the Islamabad High Court once again challenging the vires of
Section 4C of the Ordinance which has already been turned down by their
respective Provincial High Courts. It is submitted by the learned counsel
that the respondents approached the Islamabad High Court because the
Islamabad High Court had already decided in favour of the taxpayers by
reading down Section 4C of the Ordinance in its judgment passed in the
case titled Fauji Fertilizer Company Limited and another v. The Federation
of Pakistan and others (W.P. No.4027/2022).

4. That two interim orders passed in these petitions are relating

to; (i) interim injunction granted to the taxpayers; and (ii) the court has
decided to proceed with the said cases, parking the question of
maintainability till the final conclusion of the case. Islamabad High Court
has not yet given any reasons for passing both the said interim orders.

5. Learned counsel for the petitioner-department submits that

the respondents taxpayers who operate in Punjab and Sindh cannot
challenge the vires of the law in Islamabad as Islamabad High Court lacks
territorial jurisdiction besides the matter has already been decided against
the respondent taxpayers in their respective Provinces by their respective
High Courts. In support of her contention learned counsel for the
CP-52 of 2024 etc. title 6

petitioner-department has placed reliance on Sandalbar Enterprises Pvt.

Ltd. v. Central Board of Revenue (PLD 1997 S.C. 334), Amin Textile Mills
Pvt. Ltd. v. Islamic Republic of Pakistan (1998 SCMR 2389), Shahida
Maqsood v. President of Pakistan (2005 SCMR 1746), Sethi & Sethi Sons v.
Federation of Pakistan (2012 PTD 1869), Hassan Shahjehan v. FPSC (PLD
2017 Lah. 665) and Sabir Din v. Govt. of Pakistan (1979 SCMR 555).
Learned counsel further argued that since vires of law had been
challenged, no interim relief could be granted, in support of this
contention, learned counsel placed reliance on Federation of Pakistan v.
Aitzaz Ahsan (PLD 1989 S.C. 61).

6. We have noted that no reason has yet been given by the High
Court for passing the said interim orders and the detailed reasons are still
awaited. At this juncture, the parties have arrived at a consensus that the
Islamabad High Court be directed first to decide the question of
maintainability through a speaking order and then take up the matter of
interim relief. Hence, the application for interim relief filed by the
respondent taxpayers shall be deemed to be pending before the said High
Courts and in this background both the interim orders be set aside. Order
accordingly.

7. We are sanguine that the question of maintainability as well

as interim relief will be decided by the Islamabad High Court not later
than one month from today. These petitions are converted into appeals
and allowed in the above terms.

CMA 997 of 2024:

8. Mr. Haider Waheed, ASC for the applicant has also consented
for disposal of his application in the above terms. This CMA is therefore
disposed of accordingly.

Judge

Judge

Islamabad,
27th February, 2024. Judge
Not approved for reporting
Iqbal