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HUAWEI TECHNOLOGIES PAKISTAN (PRIVATE) LIMITED vs FEDERATION OF PAKISTAN through Secretary Revenue Division (CFBR) Ss — 2026 PTD 577 ISLAMABAD

Case information

Citation
2026 PTD 577 ISLAMABAD
Court
Islamabad High Court
Year
2026
Reporter
PTD
Parties
HUAWEI TECHNOLOGIES PAKISTAN (PRIVATE) LIMITED vs FEDERATION OF PAKISTAN through Secretary Revenue Division (CFBR) Ss
Subject matter
Tax & Customs
Provisions referred to
S. 214-; S. 177; 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

HUAWEI TECHNOLOGIES PAKISTAN (PRIVATE) LIMITED VS FEDERATION OF PAKISTAN through Secretary Revenue Division (CFBR) Ss. 177 & 214-a---Constitution of Pakistan, art. 199---Constitutional petition---audit after expiry of limitation---Condonation of delay---Scope---Petitioner / company was aggrieved of extension in time by authorities to initiate audit proceeds beyond period prescribed for the purpose---Validity---Federal Board of Revenue and its officers are duly authorized under S. 214-aof Income Tax Ordinance, 2001 to condone delay in performance of any act or thing for which a period has been prescribed under Income Tax Ordinance, 2001 and audit essentially is an act or thing to be done---Purpose of S. 214-a of Income Tax Ordinance, 2001 is to give a separate overriding power to the Board to permit any act or thing to be done under the statute within such time period as it may deem appropriate, which is independent of any other provision of Income Tax Ordinance, 2001 that provides a time frame and an audit is plainly such an act---Federal Board of Revenue has the power under S.214-a of Income Tax Ordinance, 2001 to grant condonation---Show cause notice was to be issued within the prescribed five-year period, and such outer limit was absolute and could not be breached---Only five-year limit did not matter and delay after a timely notice had invalidated the proceedings---additional statutory time limits, such as the time prescribed for issuing the order-in-original after a valid show cause notice were also mandatory and not merely directory but had created multi-layered, mandatory protections for taxpayers---Delays were not caused by any external or unavoidable impediment and Federal Board of Revenue could have proceeded within the statutory period---Benefit of such conduct rebounds entirely to taxpayer, not by operation of law but through the authority's own failure to discharge its obligations with diligence and integrity---If the authority was genuinely committed to proper discharge of its functions, it could have attributed liability when called for---High Court declared condonation of time by authorities as void---High Court restrained the authorities from seeking further information pertaining to Tax Year 2019 in pursuance of such condonation of time limit---High Court declared audit proceedings under S. 177 of Income Tax Ordinance, 2001 as time barred---Constitutional petition was allowed accordingly.

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