All the arguments and contentions made by the Sindh High Court in the aforesaid order which have been emphasised are factually, and legally incorrect. These are produced below as under;

1- The contention that “It is an approved concept of taxation and is not dependent on the actual amount of money or income being received by a taxpayer. 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” is factually and contextually wrong as the concept of notional Annual Letting Value of Property as used as the basis of the order has been discarded in the Income Tax Ordinance 2001.

The concept of ALV was a deeming provision which has been referred to in the order which is no more applicable. The relevant texts of the statutes are reproduced as under.

Deemed income tax on ownership of vacant plot incorrect–I

Income Tax Ordinance 2001

(2) Subject to sub-section (3), “rent” means any amount received or receivable by the owner of land or a building as consideration for the use or occupation of, or the right to use or occupy, the land or building,........

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