| Case ID |
0c5595ac-eb92-4244-b5c6-23935cc87a4e |
| Body |
View case body. Login to View |
| Case Number |
I.T.Rs. Nos. 44 and 45 of 2007 |
| Decision Date |
May 26, 2009 |
| Hearing Date |
May 21, 2009 |
| Decision |
The Islamabad High Court ruled that there is no time limit for action under section 52 of the Income Tax Ordinance, 1979. The court held that the legislature did not provide a period of limitation for declaring a person to be an assessee in default. The court emphasized that the period of limitation under section 156(4) is applicable only for rectifying existing orders, and cannot be imposed on section 52 actions. The case was remanded to the tribunal for a merit-based decision, as the tribunal had incorrectly applied a time limit where none existed. |
| Summary |
In the landmark case I.T.Rs. Nos. 44 and 45 of 2007, the Islamabad High Court addressed the critical issue of the limitation period for declaring a person as an assessee in default under the Income Tax Ordinance, 1979. The court determined that the legislature had not specified any limitation period for such declarations, thereby rejecting the notion that actions under section 52 were subject to the four-year limitation typically applied under section 156(4) for rectification of orders. This decision clarifies the legal landscape surrounding taxation matters and reinforces the authority of tax officials to act without the constraint of a time limit in certain circumstances. The ruling also highlights the importance of understanding the nuances of tax law, particularly in the context of compliance and enforcement. Legal practitioners, tax professionals, and businesses must take heed of this decision to navigate the complexities of tax liabilities effectively. The case has implications for future taxation disputes and the interpretation of the Income Tax Ordinance, making it a significant reference point for both legal and taxation frameworks. |
| Court |
Islamabad High Court
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD MUNIR PERACHA,
SYED QALB-I-HASSAN
|
| Lawyers |
Mr. Shahid Iqbal Advocate,
Mr. Naveed A. Andrabi
|
| Petitioners |
Not available
|
| Respondents |
Messrs PAKISTAN MOBILE COMMUNICATION (PVT.) LTD., ISLAMABAD
|
| Citations |
2009 SLD 1295,
2009 PTD 1767
|
| Other Citations |
2003 PTD 1571,
2002 PTD 14
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
50,
52,
156(4)
|