| Case ID |
0a5ba2d4-36e8-484e-8ec6-3bd770ab9f63 |
| Body |
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| Case Number |
Writ Petition No. 39650 of 2019 |
| Decision Date |
Mar 08, 2022 |
| Hearing Date |
Mar 08, 2022 |
| Decision |
The Lahore High Court dismissed the constitutional petition concerning a show-cause notice issued under Section 122 of the Income Tax Ordinance, 2001, asserting that the concept of 'Change of Opinion' was not applicable. The court highlighted that after the filing of a return, it is treated as an assessment order and that taxpayers are required to maintain supporting records for six years. The court further noted that the taxation officer had applied their mind to the charging of further tax, thus invalidating the petitioners' claims regarding the applicability of the earlier ordinance. The petitioners' arguments regarding exemptions under specific rules were deemed insufficient, leading to the dismissal of the petition. |
| Summary |
In the case of Messrs Asian Food Industries Limited vs. Federal Board of Revenue, the Lahore High Court examined the constitutional validity of a show-cause notice issued under the Income Tax Ordinance, 2001. The court focused on the interpretation of the term 'Change of Opinion' and its relevance to the tax assessment process. The court underscored that once a tax return is filed, it is treated as an assessment order, thus limiting the scope for reopening assessments based solely on changes in opinion. This decision reinforced the principles of tax administration and compliance, emphasizing that taxpayers must keep adequate records to support their declarations. The judgment aligns with recent trends in tax law, where adherence to procedural correctness and the importance of maintaining thorough documentation are increasingly highlighted. Legal precedents such as Edulji Dinshaw Limited v. Income Tax Officer and Northern Power Generation Company Limited v. Federation of Pakistan were referenced to substantiate the court's position. Overall, the ruling serves as a critical reminder for taxpayers regarding their obligations and the interpretation of tax laws, ensuring clarity and consistency in tax administration. |
| Court |
Lahore High Court
|
| Entities Involved |
Federal Board of Revenue,
Messrs Asian Food Industries Limited
|
| Judges |
Shahid Jamil Khan
|
| Lawyers |
Imtiaz Rashid Siddiqui,
Barrister Shehryar Kasuri,
Raza Imtiaz Siddiqui,
Syed Zain-ul-Abidin Bokhari
|
| Petitioners |
Messrs Asian Food Industries Limited through General Manager Finance and Others
|
| Respondents |
Federal Board of Revenue through Chairman and 4 Others
|
| Citations |
2022 SLD 909,
2022 PTD 1069,
(2022) 126 TAX 26
|
| Other Citations |
Edulji Dinshaw Limited v. Income Tax Officer PLD 1990 SC 399,
Northern Power Generation Company Limited v. Federation of Pakistan and others 2015 PTD 2052,
Kamalia Sugar Mills Ltd. v. Customs Central Excise and Sales Tax Appellate Tribunal and others 2016 PTD 2183
|
| Laws Involved |
Income Tax Ordinance, 2001,
Sales Tax Special Procedure Rules, 2007,
Income Tax Ordinance, 1979,
Sales Tax Act, 1990
|
| Sections |
114,
120,
122,
174(3),
177,
5,
65,
11,
25
|