| Case ID |
02771823-8cac-4e07-89df-8fbe42575347 |
| Body |
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| Case Number |
Civil Petitions Nos. 283-L to 286-L of 2018 |
| Decision Date |
Mar 05, 2020 |
| Hearing Date |
Mar 05, 2020 |
| Decision |
The Supreme Court of Pakistan dismissed the petitions after determining the date on which tax refunds became due to the taxpayer under the Income Tax Ordinance, 2001. The court clarified that the tax refund became due from the date of the refund order and not from the date of the deemed assessment as per section 120. The court also highlighted that the refund mechanism under the Ordinance requires proper scrutiny by the Commissioner and cannot be substituted by deemed assessments. The decision emphasized that applications for refunds must be processed through the established mechanisms outlined in the Ordinance, thus ensuring taxpayers receive their due refunds in a timely manner. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, 2001, specifically regarding the timing of tax refunds and the conditions under which they become due. The Supreme Court of Pakistan addressed the issue of when a tax refund is considered due for the purposes of additional payments or compensation for delayed refunds. The court ruled that the date of the refund order issued by the Deputy Commissioner is the critical date for determining when the refund becomes due, rather than the date of deemed assessment. This case underscores the importance of adhering to the statutory procedures outlined in tax laws for refund applications, ensuring that taxpayers are adequately compensated for delays in receiving their refunds. The ruling provides clarity on the relationship between deemed assessments and actual refund orders, reinforcing taxpayer rights in the context of tax refunds and the obligations of the revenue authorities. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
MANZOOR AHMAD MALIK,
YED MANSOOR ALI SHAH,
AMIN-UD-DIN KHAN,
HAMID ASHRAF (LATE) THROUGH L.RS.
|
| Lawyers |
Shahbaz Butt,
Iqbal Hashmi,
Mian Yousaf Umer,
Imtiaz A. Shaukhat
|
| Petitioners |
HAMID ASHRAF (LATE) THROUGH L.RS. AND OTHERS
|
| Respondents |
COMMISSIONER INLAND REVENUE, LAHORE
|
| Citations |
2020 SLD 942,
2020 SCMR 843
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
120,
171
|