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Constitutional Petition No.301 of 1987, decided on 13th April, 1987.

--S. 93--Constitution of Pakistan (1973), Art. 199--Recovery of tax- Stay--Levy of income-tax challenged in constitutional petition on the plea that petitioner's income was exempt from tax in view of judgment of Supreme Court reported in P L D 1980 S C 84 and that other petitions involving identical points were pending in the Court--High Court, in its constitutional jurisdiction granted stay of recovery of tax subject to furnishing bank-guarantee of the amounts involved within a month and thereafter constitutional petition ordered to be fixed for regular hearing.

Constitutional Petition No. D-69/85 ref.

A. S. Waswani for Petitioner.

Shaikh Hyder for Respondents.

.--In the' above petition and the two other connected petitions the levy of income tax, has been impugned on the ground that the petitioner's income was exempted in view of the judgment of the Supreme-Court in the case of Hamdard Dawakhana reported in P L D 1980 S C 84, whereas the contention of the Income-tax Department is that there is no lack of jurisdiction on the part of the Income Tax Officer but there is only dispute as to the recovery and, therefore, the petitioners are not entitled to any stay. It has been further pointed out that factually the petitioners have filed second appeals before the Income-tax Appellate Tribunal, which are pending. .

2. Mr. Shaikh Hyder has also submitted that big sums are involved in this petition and the other two connected petitions admitted by this Court and, therefore, the stay should not be grant.

3. Since another Division Bench of this Court by an order dated 5-3-1987 passed in Constitution Petition No. D-69/1985 in an identical writ petition filed by the present petitioner has granted the stay subject to furnishing security in respect of the tax amount, we would grant the stay but subject to furnishing bank guarantee of the amounts involved in three writ petitions (either a joint bank guarantee or three separate bank guarantees) within a month and thereafter the above petition as well as the other connected petitions be fixed' for regular hearing as cases No. 1.

M.B.A./H-43/K Recovery stayed.

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