Legal Case Summary

Case Details
Case ID 0c0adf70-38f7-43f0-81e3-fbe99e7f31b5
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Case Number I.T.A. No. 2608/LB/2018 and I.T.A. No. 2697/LB/201
Decision Date Sep 22, 2020
Hearing Date Aug 25, 2020
Decision The Appellate Tribunal ruled that an order passed by a court or tribunal must be implemented unless reversed or suspended. The case concerned the interpretation of sections 124 and 226 of the Income Tax Ordinance, 2001, focusing on the obligation of the Commissioner to comply with an order that had attained finality. The tribunal found that the Commissioner cannot delay implementation by filing a rectification application. The decision emphasized that the Commissioner must issue an appeal effect order within two months, following the finalization of the order by the Commissioner (Appeals). The court allowed the petition and directed the Commissioner to comply with the provisions of the Ordinance.
Summary This case revolves around the application of the Income Tax Ordinance, 2001, particularly sections 124 and 226, in the context of tax assessments and the obligations of the Commissioner. The tribunal analyzed whether the Commissioner could postpone the implementation of a final order by filing for rectification. The findings underscore the importance of timely compliance with judicial decisions in tax matters, reinforcing the principle that final orders must be executed unless legally challenged. This ruling is significant for taxpayers and tax authorities alike, as it clarifies the procedural requirements for implementing tax-related decisions, ensuring that taxpayers' rights are protected while maintaining the integrity of the tax system. The court's decision also highlights the critical nature of adhering to statutory timelines in tax proceedings, which can impact the rights and obligations of the parties involved.
Court Appellate Tribunal Inland Revenue
Entities Involved THE BANK OF PUNJAB, LAHORE, THE CIR, LTU, LAHORE
Judges MUHAMMAD WASEEM CH., JUDICIAL MEMBER, DR. SHAHID SIDDIQ, ACCOUNTANT MEMBER
Lawyers Mansoor Beg, Abdul Malik
Petitioners THE BANK OF PUNJAB, LAHORE
Respondents THE CIR, LTU, LAHORE
Citations 2022 SLD 887, (2022) 125 TAX 413
Other Citations Commissioner of Income Tax Company’s II, Karachi v. Messrs National Food Laboratories (1992 PTD 570)
Laws Involved Income Tax Ordinance, 2001
Sections 122(5A), 113, 21(c), 161, 113(2)(c), 124A, 127, 233, 151, 23, 210(1A), 113(1), 23(1), 100A, 113(1)(c), 120(1)(a)