Law & Practice of Income Tax

Pakistani tax laws have continuously been subjected to drastic changes through annual Acts/Ordinances and in between by different Presidential Ordinances and Statutory Regulatory Orders (SROs). As if it was not enough, the Government decided to repeal the Income Tax Ordinance, 1979 with effect from 1st July, 2002. The repealed Ordinance had twenty-three years of existence and after numerous judicial pronouncements and amendments had earned universal acceptance. It is unfortunate that without any cogent reasons, this law was repealed. We have commented in detail about this aspect under section 1 of the new Ordinance that was notified on 13th September, 2001. However, since its inception it was amended substantially (over 700 amendments inserted over five years) which, is an open admission that it was poorly drafted in the first place. Apprehensions that there would be further amendments in the coming years as well have proved true as evident from the massive legislative history. The Ordinance continues to pass through experimental legal amendments in the most erratic manner imaginable.

      At the time of promulgation of the new law, there was a dire need for a commentary on income tax that could cover both substantial and procedural aspects of repealed and new law. This section-wise commentary has been specifically designed to present the readers with:–

             1.     Comparable position under both the laws with explanatory notes.

             2.     Commentary supported by departmental circulars and case law.

      This book is in loose-leaf binding (post-lock system) so that regular up-dating service can be provided through 24-hours on-line facility http://www.huzaimaikram.com and printed replaceable pages.

      The study of income tax law requires a systematic analysis of its provisions which is possible only on the basis of authoritative treatise giving detailed, reliable, authentic and thorough coverage of principles of taxation and interpretation of statutes. This work is a humble attempt to fulfil these objectives. There has been an increasing demand from our invaluable readers of a commentary on income tax law, which is not only comprehensive and up to date but also makes the exposition of a difficult and intricate subject, lucid through appropriate analysis and comments so as to understand the law in an interesting and fascinating manner. We have tried our best to come up to their expectations.

      This work, spread over three volumes, deals elaborately and exhaustively with the entire Ordinance 2001 and the Income Tax Rules, 2002. The Third Volume also contains ITAT Rules, 2005, CVT, FTO Ordinance and other related enactments. The new tax code is explained through a descriptive writing style critically analysing and examining each provision of law in the context of established principles of interpretation of fiscal statutes, judicial pronouncements and departmental instructions. In addition, we have given our own critical comments wherever so required.

      This commentary employs a fresh and novel approach to the study of income tax law keeping in view specific requirements of chartered accountants, taxpayers, lawyers, researchers, tax management consultants, income tax practitioners, officials of the Income Tax department and the corporate sector. The most distinguishing feature of this commentary is its presentation in concise form and regular up-dating service, unlike commentaries available from India [nobody in Pakistan has attempted anything of this kind since late Mr. Raza Naqvi’s Commentary] covered in many volumes without being up-dated regularly. This pioneer work has several unparalleled features which make it distinct from those available in the market:

       †     The entire material is presented in a reader-friendly manner;

       †     Each provision of law is provided with legislative history, comparable analysis, comments and excerpts from case law and other interacting laws;

       †     Departmental circulars/instructions which are still relevant as per section 239(10) have been reproduced;

       †     Relevant case law presented with intelligent classifications and self-explanatory headings make it absolutely convenient for readers to find out answers to their peculiar queries;

       †     A point of law not judicially annotated has been critically and comprehensively commented upon.

Since this book is regularly up-dated, there remains continuous room for improvement. We assure our readers that on the basis of their views, comments and criticisms, which are most welcome, every possible effort will be made to make this work better.

                                                                                                                     Huzaima Bukhari
                                                                                                                        Dr. Ikramul Haq