Balochistan High Court
2025
THLN 4547
2025 PTD 480
Laws Cited
Income Tax Ordinance, 2001 | Constitution of Pakistan, 1973
Sections
7E | 23, 24, 25, 70, 77 & 142; Fourth Schedule--Federal Legislative List—Entry No. 47 & 50

QUETTA CHAMBER OF COMMERCE & INDUSTRY and another

VS

FEDERATION OF PAKISTAN through Secretary Revenue Division and another

Petitioner(s) by: M/s Pervaiz Khan, Syed Mohibullah and Nasrullah Kakar, Advocates for the Petitioners in C.P. No. 2058 of 2022. Mr. Usama Zaheer, Advocate, petitioner in person in C.P. No. 958 of 2023. Mr. Khushal Khan Kasi, Assistant Attorney General
Respondent(s) by: Barrister Iftikhar Raza, Advocate, assisted by Mr. Rehmatullah Durrani, Commissioner Inland Revenue, Quetta for Respondent No. 2. Mr. Zahoor Ahmed Baloch, Additional Advocate General (AAG) assisted by Barrister Iftikhar Raza, Advocate and Rehmatullah Durrani, Commissioner Inland Revenue, Quetta for Respondent No.5. M/s Amanullah Kanrani and Kamal Siddiqui, Advocates for Amicus Curiae.
Present: MUHAMMAD HASHIM KHAN KAKAR, C.J. AND SHAUKAT ALI RAKHSHANI, J.
JUDGMENT

The petitioners in both the above captioned constitutional petitions have challenged the provision of section 7E of the Income Tax Ordinance, 2001 ( ldquo;the Ordinance rdquo;) inserted through the Finance Act, 2022, on the basis that it is ultra vires the constitution of Islamic Republic of Pakistan, 1973 ( ldquo;the Constitution rdquo;), for being beyond the competence of the Federal Legislature, and for being discriminator) #39; and confiscatory violating constitutional rights, hence liable to be struck down.2. At the very outset, it would not be out of place to mention that the vires of the impugned provision was challenged before different High Courts i.e. the High Court of Sind, the Lahore High Court, Islamabad High Court as well as Peshawar High Court. The Hon rsquo;ble Sind and Lahore High Courts upheld the vires of section 7E, whereas the Hon rsquo;ble High Courts of Peshawar and Islamabad have struck down the law for being ultra vires.3. While following the principle of avoid...

2025 THLN 4547
Balochistan High Court
(2025 PTD 480)

PRESENT:
MUHAMMAD HASHIM KHAN KAKAR, C.J. AND SHAUKAT ALI RAKHSHANI, J.

QUETTA CHAMBER OF COMMERCE & INDUSTRY and another
VS
FEDERATION OF PAKISTAN through Secretary Revenue Division and another

Petitioner(s) by: M/s Pervaiz Khan, Syed Mohibullah and Nasrullah Kakar, Advocates for the Petitioners in C.P. No. 2058 of 2022. Mr. Usama Zaheer, Advocate, petitioner in person in C.P. No. 958 of 2023. Mr. Khushal Khan Kasi, Assistant Attorney General.

Respondent(s) by: Barrister Iftikhar Raza, Advocate, assisted by Mr. Rehmatullah Durrani, Commissioner Inland Revenue, Quetta for Respondent No. 2. Mr. Zahoor Ahmed Baloch, Additional Advocate General (AAG) assisted by Barrister Iftikhar Raza, Advocate and Rehmatullah Durrani, Commissioner Inland Revenue, Quetta for Respondent No.5. M/s Amanullah Kanrani and Kamal Siddiqui, Advocates for Amicus Curiae..

Law: Income Tax Ordinance, 2001
Sections: 7E

Law: Constitution of Pakistan, 1973
Sections: 23, 24, 25, 70, 77 & 142; Fourth Schedule--Federal Legislative List—Entry No. 47 & 50

Disclaimer / Note: We have reproduced the judgment for facilitation of readers; however, the readers must study the original or certified copy of the above said judgment before referring it in any Court of Law. The judgment as reproduced above is a reported judgment available in law magazines and journals namely: 2025 PTD 480