| Case ID |
0034d1a3-1101-4506-93f5-4a4ab6d03031 |
| Body |
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| Case Number |
Constitutional Petitions Nos.D-1041, D-1042 and D- |
| Decision Date |
Jan 31, 1991 |
| Hearing Date |
Nov 19, 1990 |
| Decision |
The Sindh High Court ruled that the actions taken under Section 65 of the Income Tax Ordinance were without jurisdiction after an assessment had already been made under Section 59(1). The court emphasized that once an assessment under Section 59(1) has been finalized, no further reassessment under Section 65 can occur unless no order of assessment has been passed subsequently. The court allowed the petitions filed by the petitioner, declaring that the notices and assessments made under Section 65 were of no legal effect. This decision protects the rights of taxpayers under the Self-Assessment Scheme, providing clarity on the limits of reassessment powers of tax authorities. |
| Summary |
In the landmark case of Pakistan Tobacco Limited vs. Government of Pakistan, the Sindh High Court examined the legality of reassessments made under Section 65 of the Income Tax Ordinance following an assessment under Section 59(1). The case arose when Pakistan Tobacco Limited, a major cigarette manufacturer, challenged the tax authority's decision to reassess its tax liabilities for the assessment years 1983-84 through 1987-88. The court found that the Income Tax Ordinance explicitly prohibits the reopening of assessments once a final assessment has been made under Section 59(1). This ruling reinforces the protections afforded to taxpayers under the Self-Assessment Scheme, ensuring that once assessed, taxpayers cannot be subjected to further scrutiny unless specific conditions are met. The decision has significant implications for tax law and the rights of corporations in Pakistan, establishing a precedent that limits the powers of tax authorities to reassess previously settled tax matters. This ruling is expected to impact future tax disputes, providing clarity and protection for taxpayers against arbitrary reassessments. |
| Court |
Sindh High Court
|
| Entities Involved |
GOVERNMENT OF PAKISTAN,
PAKISTAN TOBACCO LIMITED
|
| Judges |
SALEEM AKHTAR,
HUSSAIN ADIL KHATRI
|
| Lawyers |
Sirajul Haq,
Shaikh Haider
|
| Petitioners |
PAKISTAN TOBACCO LIMITED
|
| Respondents |
GOVERNMENT OF PAKISTAN through Secretary, Ministry of Finance, Islamabad and 3 others
|
| Citations |
1991 SLD 93,
1991 PTD 355
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
65,
53(1),
59(1)
|