COMMISSIONER INLAND REVENUE (LEGAL), ISLAMABAD vs PAKISTAN LNG LIMITED — 2026 SCMR 227 SUPREME-COURT

Case information

Citation: 2026 SCMR 227 SUPREME-COURT
Court: Supreme Court of Pakistan
Year: 2026
Reporter: SCMR
Parties: COMMISSIONER INLAND REVENUE (LEGAL), ISLAMABAD vs PAKISTAN LNG LIMITED
Subject matter: Criminal
Provisions referred to: Income Tax Ordinance (XLIX of 2001); 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

COMMISSIONER INLAND REVENUE (LEGAL), ISLAMABAD VS PAKISTAN LNG LIMITED. Ss.127,129(4),137,138(1),140 & 146A(4)---Income Tax Ordinance (XLIX of 2001)---Demand of tax and recovery of tax---Distinction. The scheme of law provides two distinct processes for demanding tax and recovery of tax. A demand notice is served under Section 137 of the Income Tax Ordinance, 2001 whereby taxpayer is informed about amount due and required to pay such tax by the due date mentioned in notice. On receipt of notice, taxpayer may either discharge liability or challenge it in appeal under Section 127 of the Ordinance. If appeal is filed, first proviso to Section 140 provides that Commissioner shall not issue notice for recovery of tax due until appeal is decided. After decision of appeal, Commissioner Inland Revenue-Appeals is required to inform taxpayer under Section 129(4). Recovery mechanisms provided under Chapter X Part IV are independent modes and each mode has its own procedure. The argument that once demand notice under Section 137 has been issued, coercive measures can immediately be adopted ignores the statutory scheme. Where recovery is sought from third parties under Section 140, notice and setting of future date are mandatory requirements. Section 140 does not permit immediate coercive recovery in absence of date set in notice. Appeals filed by Department were dismissed.

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