SABIR PRESS CALENDAR vs COMMISSIONER INLAND REVENUE, CHENAB ZONE, REGIONAL TAX OFFICE, FAISALABAD S

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

SABIR PRESS CALENDAR VS COMMISSIONER INLAND REVENUE, CHENAB ZONE, REGIONAL TAX OFFICE, FAISALABAD S. 3---Suppression / concealment in sales tax record---Allegations raised in Show-Cause Notice---Order passed beyond the allegation in show-cause notice---Certain aspects controverted by the taxpayer---Effect---Further inquiry, requirement of---Scope---During interim scrutiny of monthly sales tax record, on account of certain discrepancies found in the results declared by the Taxpayer / Association of Persons (AOP), a Show-Cause Notice was issued, which culminated in passing of order-in-original against the taxpayer, which was maintained upto Appellate Tribunal Inland Revenue ('the Tribunal')---Submission of the applicant / taxpayer was that the fora below had travelled beyond the allegations voiced and raised in the Show-Cause Notice whereas substantial grounds were raised by it in response to allegations mentioned in Show-Cause Notice---Validity---Where, in response to a Show-Cause Notice, the taxpayer raises substantial grounds or presents significant factual aspects not covered in the initial notice and which therefore require further inquiry or verification by the Department, a fresh or supplementary Show-Cause Notice should be issued to the taxpayer, if necessary, after conducting such further inquiry---No determination can be made regarding these new grounds or facts unless the taxpayer is given the opportunity to respond to any deficiencies or misrepresentations found in relation thereto, with such issues specifically alleged in a fresh or supplementary Show-Cause Notice---Therefore, it would be appropriate that, instead of proceeding under the original Show-Cause Notice, a fresh or supplementary notice be issued to the taxpayer in light of the defence presented---In light of the grounds or facts raised in the taxpayer's defence, which were unknown to the tax authorities and thus not part of the original Show-Cause Notice, no further action should be taken under the initial notice---Any adjudication on these grounds would be legally unsustainable, rendering the entire process redundant---Charges or allegations in a Show-Cause Notice must be specific, otherwise, the taxpayer would be prejudiced and denied the right to a fair trial---Adjudicating Authority must confine the proceedings to the specific charges and allegations clearly stated in the Show-Cause Notice---Adjudicating a charge or allegation not addressed in the notice would not be legally valid---In the present case, after the taxpayer's response to the Show-Cause Notice, the new situation that emerged should have been addressed through a fresh Show-Cause Notice, but this was not done---Rationale for not exceeding the scope of the Show-Cause Notice is that the aggrieved party must be given the chance to present their case; otherwise, this would violate the principles of natural justice, as the aggrieved party would not be aware of the new grounds or factual elements and would not be able to properly defend itself before the concerned authority---Reference Application, filed by taxpayer , was allowed. Citation Name: 2025 PTD 746 LAHORE-HIGH-COURT-LAHOREBookmark this Case SABIR PRESS CALENDAR VS COMMISSIONER INLAND REVENUE, CHENAB ZONE, REGIONAL TAX OFFICE, FAISALABAD S. 24-a---Sales Tax act (VII of 1990), S. 3---Suppression / concealment in sales tax record---allegations raised in Show-Cause Notice---Certain aspects of Show-Cause Notice controverted by the taxpayer---Effect---Speaking order, passing of---Order-in-Original against the taxpayer / association of Persons (aOP) was maintained upto appellate Tribunal Inland Revenue ('appellate Tribunal')---Validity---Record revealed that the appellate Tribunal had not independently addressed the material aspect of the matter---as a result, the impugned order passed by the appellate Tribunal failed to meet the requirements of a speaking order as contemplated under S. 24-a of the General Clauses act, 1897---It was obligatory for the appellate Tribunal to examine the case with proper application of mind and to provide reasons in support of the impugned order---However, such reasoning was conspicuously absent in the present case, rendering the impugned order unsustainable in the eyes of the law---Reference application, filed by taxpayer, was allowed.

SABIR PRESS CALENDAR vs COMMISSIONER INLAND REVENUE, CHENAB ZONE, REGIONAL TAX OFFICE, FAISALABAD S — 2025 PTD 746 LAHORE-HIGH-COURT-LAHORE

Case information

Judgment text as reported

Other judgments reported in 2025 PTD