| Case ID |
007aeaf4-caba-4a42-b4f2-7770ae518e95 |
| Body |
View case body. Login to View |
| Case Number |
Income Tax Appeal No.790 of 2000 |
| Decision Date |
Oct 30, 2003 |
| Hearing Date |
|
| Decision |
The Sindh High Court ruled that the explanation added to section 50(4) of the Income Tax Ordinance, 1979, by the Finance Act, 1998, cannot be applied retrospectively. The Court highlighted that the law cannot impose liability for actions that were legal at the time they were conducted. The Tribunal's decision to delete the addition made under sections 52 and 86 for failure to deduct and deposit tax was upheld. The Court emphasized that the nature of the amendment was substantive and did not merely clarify existing law, but instead expanded the scope of tax liability, thus requiring future compliance only. |
| Summary |
This case revolves around the applicability of the Income Tax Ordinance, particularly section 50(4) which deals with the deduction of tax at source on payments made. The Sindh High Court addressed the issue of whether the explanation added to this section by the Finance Act, 1998, could be applied retroactively to impose tax liabilities for previous transactions. The Court concluded that the amendment could not be applied retrospectively, thus preventing the imposition of penalties for non-compliance with a law that was enacted after the fact. This decision is pivotal for understanding tax liabilities and the scope of retroactive laws, especially within the context of income tax regulations in Pakistan. The case reinforces the principle that no one should be penalized for failing to comply with a law that was not in effect at the time of their actions, ensuring fairness and clarity in tax law enforcement. |
| Court |
Sindh High Court
|
| Entities Involved |
COMMISSIONER OF INCOME TAX, KARACHI,
Messrs NAZIR AHMED AND SONS (PVT.) LTD.
|
| Judges |
SHABBIR AHMED,
MUHAMMAD MUJEEBULLAH SIDDIQUI
|
| Lawyers |
Aqeel Ahmed Abbasi
|
| Petitioners |
COMMISSIONER OF INCOME TAX, KARACHI
|
| Respondents |
Messrs NAZIR AHMED AND SONS (PVT.) LTD., KARACHI
|
| Citations |
2004 SLD 174,
2004 PTD 921,
(2004) 89 TAX 385
|
| Other Citations |
PLD 1977 Lah. 292,
AIR 1926 All. 725,
33 IC 54,
(1898) AC 469,
(1985) PTD 1,
(1985) PTD 787,
(1992) 193 ITR 77,
(1989) 179 ITR 280,
(1998) 174 ITR 269
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
50(4)
|