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  • Circular No.03 of 2023-24

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    Zahid Matloob
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    The Pakistan Revenue Division issues a partial withdrawal of instructions from Circular No. 03 of 2023-24 regarding the applicability of section 7E of the Income Tax Ordinance. [The Lahore High Court had previously declared section 7E ultra vires but an intra court appeal overturned this decision on February 15, 2024.] As a result, the instructions stating section 7E did not apply in cases under the Lahore High Court's jurisdiction are now withdrawn, and section 7E provisions are applicable in all cases under the Lahore High Court as of February 15, 2024.

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    FBR Circular No.03 of 2023-24[1]

    Original Title

    Circular No.03 of 2023-24[1]

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    The Pakistan Revenue Division issues a partial withdrawal of instructions from Circular No. 03 of 2023-24 regarding the applicability of section 7E of the Income Tax Ordinance. [The Lahore High Court had previously declared section 7E ultra vires but an intra court appeal overturned this decision on February 15, 2024.] As a result, the instructions stating section 7E did not apply in cases under the Lahore High Court's jurisdiction are now withdrawn, and section 7E provisions are applicable in all cases under the Lahore High Court as of February 15, 2024.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    12 views2 pages

    Circular No.03 of 2023-24

    Uploaded by

    Zahid Matloob
    The Pakistan Revenue Division issues a partial withdrawal of instructions from Circular No. 03 of 2023-24 regarding the applicability of section 7E of the Income Tax Ordinance. [The Lahore High Court had previously declared section 7E ultra vires but an intra court appeal overturned this decision on February 15, 2024.] As a result, the instructions stating section 7E did not apply in cases under the Lahore High Court's jurisdiction are now withdrawn, and section 7E provisions are applicable in all cases under the Lahore High Court as of February 15, 2024.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    Government of Pakistan

    Revenue Division
    Federal Board of Revenue
    *rr***

    Subject: Partial tion of Instru ns of Circular No. 03 of 2023-24

    Instructions were issued through Board's Circular No. 03 of 2023-24 dated


    15.08.2023 in order to remove any difficulties in the implementation of newly
    inserted sub-section(21t) of section 236C ofthe Income Tax Ordinance, 2OO| ("the
    Ordinance") introduced through Finance Act, 2023.

    2. The learned Single Bench of the Honorable Lahore High Court, Lahore vide
    W.P. No. 52559 of 2022 dated 06.04.2023, declared the provisions of section 7E
    ultra vires in terms of Entry 47 of Part-I of the Fourth Schedule to the Constitution
    of Pakistan. As a result, the operation of the provisions of section 7E of the
    Ordinance were suspended under the jurisdiction of Honorable Lahore High Court,
    Lahore. Accordingly, instructions were issued through Para 02 of the Circular No.
    03 of2023-24, reproduced for ease ofreference as under:

    " .... it is clarified that contents of the Circular will not opply in cases falling
    A{ in the Jurisdiction of the Honorable Lahore High Court with reference to the
    Judgement in WP no. 52559 of 2022 dated 06-04-2023 unless the said
    (lo
    r- judgment is reversed, suspended or vacation in an Intra Court Appeal or by
    s-
    r., the Honorable Supreme Court of Pakistan. "
    ..1

    5 The department filed Intra Court Appeal [CA) before the Honorable Lahore High
    -{ Court, Lahore and the Honorable Court has set-aside the earlier decision of the
    t\ learned Single Bench vide order dated 15.02.2024.
    +
    o 3. In pursuance of Honorable Lahore High Court's decision vide ICA No. 35908
    Z of 2023 titled "The Commissioner Inland Revenue Vs Muhammad Osman Gul",
    f?
    dated 15.02.2024,the earlier instructions regarding non-applicability of section 7E
    (
    a of the Ordinance in cases falling under the Jurisdiction of Honorable Lahore High
    7
    g Court, Lahore which were conveyed through para 02 of subject Circular are hereby
    a withdrawn with effect from 15.02.2024.
    t
    rl-\
    4. Since para 02 of Circular No. 03 of 2023-24 clearly states that upon
    suspension of the Single Bench judgement, the provisions of section 7E, would be
    applicable.

    Page 1 of 2

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    50/'/)
    f wr
    5. In view of the above, it is requested that field formations of Punjab may be
    informed that the Honorable Lahore High Court has set-aside the earlier decision of
    the learned Single Bench vide ICA No.35908 of 2023 dated 15.02.2024 and
    provisions of Secti on 7E of the Ordinance are applicable in cases falling under the
    Jurisdiction of Honorable Lahore High Court, Lahore, u, e.
    f . tf.oz . totq .

    (M
    Secretary (Income )
    The Chief Islamabad
    FBR's U.O. No. C.No.4(31) IT-Budgetl2023 >l??e dafr'd >3.02.2024

    Page2 of 2

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