The Lahore High Court (LHC) Thursday accepted the petitions against the federal government's decision and declared null and void the imposition of tax on additional plots other than a residence.
According to 24News, the LHC accepted more than 1200 petitions against the implementation of the tax on the additional plots from the federal government.
A single bench of the Lahore High Court heard the petitions of Muhammad Usman Gul and others on Thursday. Mohsin Virk Advocate and other lawyers appeared on behalf of the petitioners before the court.
The petitioners' advocates, making the federal government, Punjab government and others a party in the petitions, took the stand in the court that it is the authority of the province to impose a tax on additional plots under Section 7(e) of the Income Tax Ordinance.
The advocates pleaded that it is unconstitutional for the federal government to levy taxes under Section 7(e) of the Income Tax Ordinance so the tax on additional plots should be declared unconstitutional and void.
The lawyers of the federal government opposed the petitions saying that the tax levied under Section 7(e) of the Income Tax Ordinance is in accordance with the law.
The petitioners had challenged Section 7(e) of the Income Tax Ordinance for the imposition of tax on additional plots in 2022.