Mst. SHUGFTA PARVEEN VS FEDERATION OF PAKISTAN
2006 P T D 470
[Lahore High Court]
Before Nasim Sikandar, J
Mst. SHUGFTA PARVEEN
Versus
FEDERATION OF PAKISTAN through Secretary Finance Division, Islamabad and 3 others
Writ Petitions Nos. 5511 and 1803 of 2004, heard on /01/.
th
September, 2005. Income Tax Ordinance (XXXI of 1979)---
----Ss.151, 159, Second Sched., Part-I, Cls. 77-C & 78-E---Income Tax Ordinance (XLIX of 2001), S. 239(14), Second Sched., Part-I, Cls.(77-C(A)) & (83)---S.R.O. 100(I)/93, dated 2-2-1993---National Savings Schemes---Investment made in such Schemes on or before 30-6-2001---Deduction of withholding tax on yield from such Schemes---Validity---Recipients of such yield would enjoy exemption from levy of withholding tax under Income Tax Ordinance, 1979 and 2001---Such exemption would be available in case of Mahana Amdani Account, where its monthly instalment did not exceed Rs.1,000---Any person paying such yield would not be obliged to deduct tax at source nor recipients thereof would be required to produce exemption certificate under S.159 of Income Tax Ordinance, 1979---National Saving Organization as collecting agent of Revenue could not take away such concession given by law to the recipients of such yield---Principles.
2006 PTD 402 fol.
Ch. Ishtiaq Ahmed for Petitioner
Dr. Danishwar Malik, Dy.-A.G., Tariq Shamim, Standing Counsel and Muhammad Ilyas Khan for Respondents.
Date of hearing: 26th September, 2005.
JUDGMENT
NASIM SIKANDAR, J.---For the various reasons recorded by me in judgment of even dated passed in Writ Petition No.1803 of 2004 (2006 PTD 402) this petition is also allowed and it is declared that the National Saving Organization as a collecting agent of the Revenue cannot withhold any tax on the profits distributed with reference to rule 9 which cannot take away the concession given by law i.e. the provisions of the Income Tax Ordinance, 1979 as well as 2001. Accordingly, all amounts deducted as withholding tax from the account of the petitioner as investor A shall, at her option either be repaid in cash or wherever the concerned scheme so permits be considered to have been a part of the re-investment made by the depositor/petitioner.
S.A.K./S-4/LPetition accepted.