1046/2019 Const. P. Ashfaq Muhammad Awan and Ors (Petitioner) V/S Fed. of Pakistan and Others (Respondent)
Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Aqeel Ahmed Abbasi(Author), Hon'ble Mr. Justice Mahmood A. Khan
Order Date: 24-JUL-20
A Divisional Bench of this Court comprising of Mr. Justice Aqeel Ahmed Abbasi and Mr. Justice Mahmood A. Khan, has pronounced the judgment on 24.07.2020 in the case of Muhammad Ayaz Khan and others v. Federation of Pakistan & others (along with C.P.No.D-1046/2019), whereby, Members of the Establishment of Sindh High Court and Members of Establishment of the Establishment of sub-ordinate judiciary of Province of Sindh, expressed their grievance against withholding of income tax by the Accountant General Sindh on the amounts paid towards Judicial Allowance and Special Judicial Allowance by treating the same as part of their salary income chargeable to tax under the Income Tax Ordinance, 2001. The Hon'ble bench of Sindh High Court has been pleased to allow both these petitions in the following terms:- "In view of hereinabove facts and circumstances of the case, we are of the considered opinion that amount of judicial allowance and special judicial allowance paid to the Members of establishment of Sindh High Court as well as to the Members of the establishment of sub-ordinate judiciary of Province of Sindh falls within the exclusion in terms of clause (c) of sub-section (2) of Section 12 of the Income Tax Ordinance, 2001, therefore, not part of their taxable salary income, hence, not chargeable to Tax or deduction under Section 149 of the Income Tax Ordinance, 2001. Accordingly, withholding of income tax on the aforesaid amounts is hereby declared to be illegal and without lawful authority. Consequently, both the constitutional petitions are allowed along with listed applications. Respondents are directed not to withhold any amount of income tax from judicial allowance and special judicial allowance of the Members of establishment of Sindh High Court as well as the Members of establishment of sub-ordinate judiciary in Province of Sindh. The amounts already deducted from the salary of the Members of establishment of Sindh High Court as well as to the sub-ordinate judiciary, shall be refunded by the FBR, on their filing refund applications in accordance with law, preferably, within a period of three months from the date of such claims."Full judgment text for this case is not yet available on Pakistan Law Reports. Check the official Sindh High Court case law portal for the complete order.
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