ISLAMABAD, Dec 22: The Supreme Court on Thursday dismissed a Rs2.5 million tax claim by Karachi Wealth Tax Department against Nahid Khan, the political secretary of ex-prime minister Benazir Bhutto. A three-member bench comprising Chief Justice Iftikhar Mohammad Chaudhry, Justice Faqeer Muhammad Khokhar and Justice M Javed Buttar dismissed the appeal of the wealth tax department for being time-barred.

The provincial tax department had imposed a wealth tax of Rs2.5 million against Nahid Khan for possessing a residential flat in Clifton Karachi despite the fact that she did not live in the city.

Nahid Khan, however, challenged the order of the tax commissioner before the Federal Appellate Wealth Tax Tribunal, pleading that she used to reside in Clifton flat whenever she visits Karachi. Accepting her appeal, the tribunal set aside the imposition of tax.

Then the wealth tax department instituted an appeal before the Sindh High Court. The SHC too dismissed the appeal for being not filed within the mandatory period of 90 days.

Later, the tax department filed a constitutional petition in the Supreme Court seeking permission to file afresh another appeal in the appellant tribunal of the SHC against Nahid Khan as the earlier appeal was rendered time-barred due to official engagements.

On Thursday Nahid Khan’s counsel Advocate Babar Awan argued before the Supreme Court that appeal could not be filed in any case specially when there was a lapse of more than a year.

The apex court, however, rejected tax department’s appeal with an observation that official engagement was not a valid excuse for a time-barred appeal.