| Case ID |
00424413-7764-44cc-ab01-189dce81f611 |
| Body |
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| Case Number |
I. T. A. No. 477 M1965-66 |
| Decision Date |
Jan 21, 1970 |
| Hearing Date |
|
| Decision |
In this case, the Income Tax Appellate Tribunal held that the imposition of a penalty under Section 46(1) of the Income Tax Act for non-payment of tax assessed under Martial Law Regulations was not warranted by law. The Tribunal noted that the Central Board of Revenue's Circular No. 16(32)/ITP/58, dated 5th September 1959, only extended provisions related to the recovery of tax and did not confer the authority to impose penalties. The Tribunal vacated the Income Tax Officer's order imposing the penalty, asserting that the necessary legal framework for such action was not present under the applicable regulations. This decision underscores the importance of adhering strictly to legislative provisions when imposing penalties in tax matters. |
| Summary |
This case involves the Income Tax Appellate Tribunal's ruling on the legality of penalties imposed for tax defaults under Martial Law Regulations. The Tribunal clarified that the Central Board of Revenue's circulars limited the application of tax recovery provisions and did not permit penalty imposition. The decision emphasized the need for clear legal authority in tax enforcement and reinforced the principle that penalties cannot be levied without explicit statutory backing. This ruling is significant for taxpayers and tax practitioners, highlighting the importance of compliance with legal standards in tax assessments and penalty applications. In the context of ongoing discussions around tax law amendments and enforcement measures, this case serves as a precedent for similar future cases, ensuring that taxpayers are protected from unjust penalties without clear legislative support. |
| Court |
Income Tax Appellate Tribunal, Lahore
|
| Entities Involved |
Not available
|
| Judges |
M.T. SIDDIQUI, PRESIDENT,
K. SALAHUDDIN, ACCOUNTANT MEMBER,
M. EUSUF, JUDICIAL MEMBER,
SHAH ABDUR RASHID, JUDICIAL MEMBER,
MOHD. SUBHAN CHOWDHRY, ACCOUNTANT MEMBER
|
| Lawyers |
Ali Azhar, Advocate,
Fakhrul Islam, PTS, D.R.
|
| Petitioners |
Ali Azhar
|
| Respondents |
Fakhrul Islam
|
| Citations |
1970 SLD 738,
(1970) 22 TAX 58
|
| Other Citations |
(1963) I3 TAXATION 23 (Trib)
|
| Laws Involved |
Income Tax Act, 1922,
Constitution of Pakistan, 1962
|
| Sections |
45(1),
46,
250
|