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COMMISSIONER INLAND REVENUE, (WITHHOLDING) ZONE, REGIONAL TAX OFFICE-II, LAHORE vs SHAHZAIB BROTHERS PAPER CONE (PVT — 2026 PTD 991 LAHORE-HIGH-COURT-LAHORE

Case information

Citation
2026 PTD 991 LAHORE-HIGH-COURT-LAHORE
Court
Lahore High Court
Year
2026
Reporter
PTD
Parties
COMMISSIONER INLAND REVENUE, (WITHHOLDING) ZONE, REGIONAL TAX OFFICE-II, LAHORE vs SHAHZAIB BROTHERS PAPER CONE (PVT
Subject matter
Criminal
Provisions referred to
S. 11

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

COMMISSIONER INLAND REVENUE, (WITHHOLDING) ZONE, REGIONAL TAX OFFICE-II, LAHORE VS SHAHZAIB BROTHERS PAPER CONE (PVT.) LTD. FAISALABAD Ss. 11(4) & 11(4a) [as inserted by the Finance act, 2016]---Non-deduction/depositing of withholding sales tax for tax periods prior to 2016, allegation of---Provisions of S.11(4a) of the Sales Tax act, 1990---Retrospectively applicability, absence of---The very issue involved in the instant reference has been conclusively settled by the Supreme Court in Civil Petition No. 4579 of 2023 titled Messrs allama Iqbal Open University v. Commissioner Inland Revenue, Withholding Tax Zone, Regional Tax Office, Islamabad, decided on 01.10.2025, vide which it was held that the recovery of tax from a withholding agent does not fall under S. 11(4) of the Sales Tax act, which pertains only to short-payment or erroneous refund due to inadvertence, error or misconstruction, and that withholding-related recovery is governed by S.11(4a) inserted by the Finance act, 2016, which has no retrospective operation---applicant /Department could not controvert the said legal position nor point out any statutory provision existing before 2016 enabling recovery of withholding sales tax under S.11(4) of the Sales Tax act---Therefore, the controversy involved herein stood squarely covered by the binding precedent of the Supreme Court under art. 189 of the Constitution---Hence, prior to the introduction of S.11(4a), no proceedings could be initiated for recovery of withholding sales tax under S.11(4) of Sales Tax act, 1990---Thus, the view taken by the appellate Tribunal Inland Revenue suffered from no legal infirmity warranting interference---The proposed question of law was answered in the negative---Special Sales Tax Reference, filed by Department, was dismissed.

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