KARACHI: The Sindh High Court (SHC) directed officials of the Federal Board of Revenue (FBR) to file their para-wise comments on a petition filed by M/s English Biscuits Manufactures Private Limited against imposition of super tax for year 2015 to 2017.
On October 18, 2018, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the matter. During the hearing, counsel for the tax department sought further time for filing comments; therefore, the court granted time and directed them to make ensure filing comments on next date of hearing.
Counsel for the petitioner stated in its petition that the petitioner challenges the constitutionality and legality of the imposition of super tax by virtue Section 4-B and vires of inserted of Section 4-B of the income tax ordinance, 2001. The petitioner challenges the said section in its entirety including all of its amendments and extensions through the Finance Act, 2015, Finance Act, 2016 and Finance Act, 2017.
He submitted that petitioner is a limited company and engaged in the business of manufacturing and sale of packaged biscuits and related goods in Pakistan, it also country’s leading manufacturer of biscuits and cookies since 1967 and one of the major foreign exchange earners from exports to foreign countries.
He argued that respondents imposed super tax through Finance Act 2015 and demanded and extended through Finance Act 2016 and Finance Act 2017 which in ultra vires to the constitution and demand of super tax from the respondents is unlawful and illegally.
Citing Secretary Revenue Division, chief commissioner Inland Revenue Large Taxpayer Unit, commissioner Zone-IV, Large Taxpayer and others as respondents, he pleaded the court to declare that Section 4-B and Division II-A in part I of the first schedule inserted into the Income Tax Ordinance, 2001 through Finance Act 2015 and amended and extended through Finance Act 2016 and Finance Act 2017 is ultra vires to the constitution.
Counsel also pleaded the court for permanently and pending disposal of the matter, suit, restrain the respondents their officers, agents, and any other person working on their behalf for taking any adverse action against the petitioner.