1764/2014 Suit Muhammad Hussain & Others (Plaintiff) V/S Pakistan & Others (Defendant)
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author)
1764/2014 Suit Muhammad Hussain & Others (Plaintiff) V/S Pakistan & Others (Defendant) Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author) Order Date: 08-SEP-15
Faced with the presumptive taxation of imports, supplies, contract, exports etc. under section 80-C and 80-CC of the Income Tax Ordinance, 1979, where tax payers challenged the constitutionality of presumptive taxation, the Supreme Court of Pakistan in its landmark judgment of Ellahi Cotton Mills (Supra) held that section 80C and 80CC (Section 148 and 153 and 154 in Ordinance 2001) provides for presumptive taxation of income within the category of presumptive tax as under the same the persons covered by them pay a pre-determined amount of presumptive tax in full and final discharge of their tax liability in respect of the transactions on which above tax is levied. If Entry 47 is read in isolation without reference to Entry No.52 one can urge that Entry 47 does not admit the imposition of presumptive tax as the expression tax on income employed therein should be understood as to the working out of the same on the basis of computation as provided in the various provisions of Ordinance. Thus, it can be held that presumptive tax is in fact akin to capacity tax i.e. capacity to earn.