| Case ID |
0a319940-eadd-494c-8f95-84619a808911 |
| Body |
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| Case Number |
P.T.R. No. 708 of 2008 |
| Decision Date |
Jun 09, 2021 |
| Hearing Date |
|
| Decision |
The Lahore High Court held that the time limitation for an assessment under Section 64 of the repealed Income Tax Ordinance, 1979, does not include the time consumed in the service of the order. The court clarified that an adjudicatory decision must be declared and duly communicated to the parties involved. The date of service of the order is considered the date of decision. The reference was decided in favor of the taxpayer, confirming that the assessment process must adhere to the legal principles established in prior case law. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance regarding the limitation period for tax assessments. The Lahore High Court addressed whether the duration for an assessment includes the time taken to serve the order to the taxpayer. The court concluded that the limitation period as per Section 64 of the repealed Income Tax Ordinance, 1979, does not encompass the time for order service, emphasizing the need for a decision to be declared and communicated effectively. This case references key legal precedents, particularly the ruling in Mujahid Soap and Chemical Industries, which reinforces the necessity for clear communication of adjudicatory decisions. The outcome favors the taxpayer, establishing a vital legal principle regarding tax assessments and the timeline for such processes, ensuring that taxpayers are adequately informed of decisions affecting their obligations. |
| Court |
Lahore High Court
|
| Entities Involved |
Income Tax Appellate Tribunal,
CIT (Appeals)
|
| Judges |
ABID HUSSAIN CHATTHA, JUSTICE
|
| Lawyers |
Shahid Sarwar Chahil for Applicant-department.,
Muhammad Ajmal Khan for Respondent-taxpayer.
|
| Petitioners |
COMMISSIONER OF Income Tax LEGAL DIVISION, RTO, LAHORE
|
| Respondents |
MESSRS MECO (PVT.) LTD. LAHORE
|
| Citations |
2022 SLD 893 = 2022 PTD 809
|
| Other Citations |
2019 SCMR 1735 = 2019 PTD 1961
|
| Laws Involved |
Income Tax Ordinance, 1979,
Income Tax Ordinance, 2001
|
| Sections |
64,
50(4),
52,
86,
133,
133(5)
|