The Lahore High Court issued notice to the Attorney General for Pakistan and the Federation for 21st in a petition of Allied Bank of Pakistan (ABL) challenging the notification issued by the federal government regarding payment of advance tax.
The petitioner counsel Syed Ali Zafar argued that under Section 147(6) of the Income Tax Ordinance, 2001 a taxpayer is entitled to pay advance income tax according to his estimate of what is likely to be the final tax amount at the end of the year. He submitted that this is a substantive right given to a banking company by a statute.
He said a statute couldn't be changed by the executive through making rules. Barrister Zafar stated that in violation of this established principle the Federal Government had issued a notification amending Section 147(6) of the ordinance through a notification.