For the sake of clarity we reproduce the gist of the Order passed by the Sindh High Court as under. This fundamental issue has been missed by the Sindh High Court and is presumably not presented before the Supreme Court of Pakistan. The Sindh High Court in its order has stated:

The best example which has been dealt with in respect of a deemed income in India as well as Pakistan, is in respect of the annual rental income from a property whether it has been rented out by a taxpayer or otherwise.

Deemed income tax on ownership of vacant plot of land incorrect—III

Time and again disputes had arisen as to the actual income received or receivable as well as concealment by the taxpayer in respect of rent from the property and therefore, the legislature introduced a concept of deemed income, whereby, tax was levied on a fixed amount of income, whether or not the property was being let out; or the taxpayer was actually receiving such income.

Insofar as the present levy is concerned, from perusal of Section 7E ibid, it clearly reflects that it is not a tax on property per-se; but a tax on deemed income for holding of a capital asset as defined in Section 7E ibid, along........

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