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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
Tax & Customs
Provisions referred to
Income Tax Ordinance (XLIX of 2001)

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.137(2), 138 & 140---Income Tax Ordinance (XLIX of 2001)---Adverse order passed by the Department---Recovery of tax from third parties holding money on behalf of taxpayer---Timeframe---Terms "amount payable" and "tax due"---Scope. In a situation where the assessment order was modified upon appeal resulting in reduction of the amount payable, it became necessary to determine whether the original demand notice issued under Section 137(2), which was based upon the initial assessment order, remained valid or whether a fresh demand notice was required. Held, that a fresh demand notice was required because the original amount payable as assessed in the initial assessment order had been modified and merged with the findings of the appellate order. The Commissioner was required to issue a fresh notice under Section 137(2) reflecting the amount determined in the appellate order and demanding payment from the taxpayer within a fresh period of thirty days. Only after failure of taxpayer to pay the amount payable determined through appellate order within the prescribed period, recovery mechanisms under Sections 138 or 140 could be initiated. Since no fresh notice under Section 137(2) was issued after the appellate order, no amount could be considered as "tax due" and any recovery action based on such assumption was invalid. Appeals filed by the Department were dismissed.

Other judgments reported in 2026 SCMR

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