ZAM ZAM LPG (PVT.) LIMITED vs FEDERATION OF PAKISTAN through Secretary/Chairman Revenue Division Ss

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ZAM ZAM LPG (PVT.) LIMITED VS FEDERATION OF PAKISTAN through Secretary/Chairman Revenue Division Ss.25 & 177---Selection of case for audit---Word "reasons"---Scope---Petitioner taxpayer was aggrieved of letter and notices issued by authorities selecting its case for audit---Validity---Word "reason" connotes an expression giving justification for an action, a ground to explain something, a consensus of informed thoughts whether factual or legal---Reasons should be so explicit so as to catch one's eye at the first glimpse and should not be a leap in a dark or a subject of fishing and roving expedition, but has to be based on sound principles of law---Before conducting audit, department is legally obliged to muster those grounds after proper application of mind and thereafter, while confronting taxpayer about selecting the case for audit, mindful as well as meaningful reasons have to be advanced, which have to be convincingly intimated to taxpayer to enable the latter to furnish a suitable reply and advance objections, if any, and those reasons should be based on independent application of mind and not on the basis of some unfounded notions, or capricious believes---Requirements of section 25 of Income Tax Ordinance, 2001, would not be fulfilled until and unless proper, just and identifiable reasons were intimated to taxpayer with regard to selection of its case for audit---Only when such reasons were given and thereafter if no compelling response was received, the case could be selected for audit---Other parameters as enshrined under S.25 of Income Tax Ordinance, 2001, would then come into play---Such requirement of law could not be termed to be simply procedural only---High Court vacated letter and subsequent notices in question as those were not in accordance with law and directed that authorities were fully authorized under the law that if they had certain requisite material for selecting case of petitioner for audit, the same should be communicated to petitioner and proceedings could be initiated afresh in accordance with law---Constitutional petition was allowed accordingly. Citation Name: 2023 PTD 649 KARACHI-HIGH-COURT-SINDHBookmark this Case ZAM ZAM LPG (PVT.) LIMITED VS FEDERATION OF PAKISTAN through Secretary/Chairman Revenue Division S.24a---Speaking order---Scope---Parameters as enshrined under S.24a of General Clauses act, 1897, with regard to exercise of discretion by an executive authority for giving reasons for its decision are mandatory---any action taken by an executive authority in violation of such principle is liable to be struck down.

ZAM ZAM LPG (PVT.) LIMITED vs FEDERATION OF PAKISTAN through Secretary/Chairman Revenue Division Ss — 2023 PTD 649 KARACHI-HIGH-COURT-SINDH

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