Pakistan, Aug. 18 -- The Federal Constitutional Court has ruled in favour of corporate taxpayers, declaring the adjustment of tax credit against super tax legally permissible and setting aside a decision of the Islamabad High Court.

Justice Aamir Farooq authored the six-page detailed judgment while allowing appeals filed by private mobile phone company Zong. The court held that tax credit arising from filing and deduction could be adjusted against super tax. It observed that tax credit available under Section 168 of the Income Tax Ordinance constituted a separate and established legal right of the taxpayer.

The judgment said that preventing a taxpayer from making an adjustment and forcing it to seek only a refund was contrary to the leg...