Lahore High Court (LHC) sought a reply on Wednesday from the federal government on a petition challenging the recovery of tax on agricultural income by federal government.
Justice Shahid Jamil Khan heard the petition filed by Zubair Shaukat.
The petitioner submitted through his counsel Zia Haider Rizvi that he had declared his agricultural land in Sheikhupura in his income tax returns. He said that after the 18th Amendment it was prerogative of the Punjab government to collect agriculture income tax under Section 111 of the Income Tax Ordinance, 2001.
He said that under the Punjab Agricultural Income Tax Act, 1997, the Punjab Revenue Authority was empowered to collect agricultural income tax. He said the federal government, through the inland revenue commissioner, had sent him a show cause notice regarding tax collection. He said the notice had been issued illegally and was unconstitutional.
Rizvi requested the court to declare the notice illegal and stop the federal government from recovering the tax.
The court has summoned counsel for the federal government ordering him to file a report on behalf of the Centre on the validity of the notice. The court ordered that no coercive measures be taken by the commissioner and the Regional Tax Office against the petitioner till the final disposed of the case.
Published in The Express Tribune, July 17th, 2015.