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ISLAMABAD, Oct 14 (APP):A five-member constitutional bench of the Supreme Court on Monday heard petitions relating to the imposition of the Super Tax. The bench, headed by Justice Aminuddin Khan, included Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, and other honorable judges.
During the proceedings, Advocate Farogh Naseem, representing various companies, argued that the concept of income tax is based on the principle that taxation increases in proportion to rising income. He added that the Federal Board of Revenue (FBR) also operates under the same mindset—that income tax should be imposed relative to one’s earnings.
Explaining further, Naseem stated that the 1979 Ordinance recognized two types of taxation: assessment tax and income tax. Assessment tax, he said, is levied on an annual basis, while income tax is imposed in comparison to the assets of the previous year.
Justice Muhammad Ali Mazhar asked, “Where is it written when assessment tax can or cannot be imposed?” Naseem responded that the ordinance explicitly states that assessment is to be carried out after one year.
He added, “Your lordships are the guardians of the Constitution. I have also been a member of Parliament, and even there, I have maintained that while Parliament is supreme, the Supreme Court is the institution that delivers justice.”
Justice Jamal Khan Mandokhail observed, “The problem is that when we deliver a judgment in someone’s favor, they are happy; when it goes against them, they become upset.” Smiling, Farogh Naseem replied, “We are only human—when a decision goes in our favor, we are pleased; when it doesn’t, we criticize it.”
Justice Muhammad Ali Mazhar further inquired, “What kind of justice do you expect when it comes to taxation?” Naseem responded that Article 10-A of the Constitution embodies the principle of natural justice, which not only ensures the right to be heard but also guarantees a fair decision.
The court subsequently adjourned further hearing of the super tax case until Wednesday.