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PAKISTAN LNG LIMITED vs FEDERATION OF PAKISTAN, through Secretary Revenue Division, Ministry of Finance, Islamabad Ss — 2022 PTD 1763 ISLAMABAD

Case information

Citation
2022 PTD 1763 ISLAMABAD
Court
Islamabad High Court
Year
2022
Reporter
PTD
Parties
PAKISTAN LNG LIMITED vs FEDERATION OF PAKISTAN, through Secretary Revenue Division, Ministry of Finance, Islamabad Ss
Subject matter
Tax & Customs
Provisions referred to
S. 140; S. 138; Income Tax Ordinance

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

PAKISTAN LNG LIMITED VS FEDERATION OF PAKISTAN, through Secretary Revenue Division, Ministry of Finance, Islamabad Ss.138 & 140---Constitution of Pakistan, Art. 199---Constitutional petition---Tax liability, recovery of---Time frame to fulfill liability---Coercive measures---Principle---Petitioner / tax payer was aggrieved of recovery of tax liability by attaching its bank accounts---Validity---If tax liability as determined through assessment order by Adjudicating Authority was upheld by Appellate Authority or even by Appellate Tribunal Inland Revenue, the tax due from taxpayer as determined by assessment order might have not been changed, but taxpayer still needed to be notified of the timeframe within which the taxpayer was required to discharge such tax liability, failing which the State could resort the exercise of its coercive power to enforce recovery under Ss.138(2) or 140 of Income Tax Ordinance, 2001--- Recovery notice in question was devoid of legal authority as it was issued in exercise of authority under S. 140 of Income Tax Ordinance, 2001 without complying with mandatory requirement of issuing a notice under S. 138(1) of Income Tax Ordinance, 2001---High Court declared such notice as void ab initio, fraud on the statute---Reasonable timeframe was to be specified under S.138 (1) of Income Tax Ordinance, 2001, by Adjudicating Authority within which the tax due was to be paid---Such reasonable time could not be a period of less than 7 days as purpose of such provision was to put taxpayer on notice to discharge tax obligation within a reasonable period and also afford taxpayer an opportunity to avail his statutory right of appeal, if so advised---Constitutional petition was allowed in circumstances.

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