| Case ID |
09e227ec-9009-4667-97ac-f4b86cce072c |
| Body |
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| Case Number |
D-412/2021 |
| Decision Date |
Mar 15, 2023 |
| Hearing Date |
Mar 09, 2023 |
| Decision |
The Sindh High Court dismissed the constitutional petitions filed by the petitioners challenging the notices issued under Sections 177 and 122 of the Income Tax Ordinance, 2001. The court ruled that the petitioners had failed to file their income tax returns in a timely manner, resulting in their automatic selection for audit. The court found that the omission of Section 214D did not affect the audit proceedings since the petitioners were already deemed selected for audit due to their non-compliance. The court emphasized that no vested rights had accrued to the petitioners and ordered that the respondents proceed with the audit based on the notices already issued. |
| Summary |
In the case of M/S. UNITED CARPETS LTD AND OTHERS versus PAKISTAN AND OTHERS, the Sindh High Court addressed the constitutionality of notices issued under the Income Tax Ordinance, 2001. The petitioners challenged the notices on the grounds of being unconstitutional and void ab initio, claiming that the omission of Section 214D through the Finance Act, 2018, precluded further audit actions. The court analyzed the arguments presented by both sides, noting that the petitioners failed to file their tax returns within the stipulated time, leading to their automatic selection for audit. The decision underscored the importance of compliance with tax regulations and the procedural nature of audit notices. This case highlights the critical aspects of tax compliance, the implications of legislative amendments, and the rights of taxpayers under the Income Tax Ordinance. The ruling reinforces the necessity for timely filing and payment of taxes to avoid automatic audit selection, a significant point for taxpayers and legal practitioners in navigating tax law. |
| Court |
Sindh High Court
|
| Entities Involved |
PAKISTAN,
M/S. UNITED CARPETS LTD
|
| Judges |
MUHAMMAD JUNAID GHAJFAR,
AGHA FAISAL
|
| Lawyers |
M/s. Ovais Ali Shah,
Maryam Riaz,
Fizzah Bucha,
Muhammad Mushtaq,
Muhammad Aqeel Qureshi,
M/s. Muhammad Taseer Khan,
Ayaz Sarwar Jamali
|
| Petitioners |
M/S. UNITED CARPETS LTD AND OTHERS
|
| Respondents |
PAKISTAN AND OTHERS
|
| Citations |
2023 SLD 1361,
(2023) 127 TAX 770
|
| Other Citations |
Shah Nawaz (Pvt.) Ltd. Vs. Pakistan (2011 PTD 1558)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
119,
122,
122(a),
137,
177,
214(1)(a)(b),
214D(a)(b),
214E
|