| Case ID |
0fcfe4a6-1e36-48ea-98b7-59ed657fe30f |
| Body |
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| Case Number |
Income Tax Reference No. 36 of 2022 |
| Decision Date |
May 22, 2024 |
| Hearing Date |
May 22, 2024 |
| Decision |
The Lahore High Court dismissed the reference application filed by the Commissioner Inland Revenue against the judgment of the Appellate Tribunal Inland Revenue. The court held that the amendments made to Section 177 of the Income Tax Ordinance, 2001, through the Finance Act, 2019, did not have retrospective effect. The court emphasized that the audit report was a prerequisite for the Commissioner to amend the assessment. The absence of an audit report rendered the amended assessment order under Section 122(4) unsustainable in law. The court also affirmed that any substantive law changes affecting vested rights should be applied prospectively, ensuring that taxpayers' rights are protected under the law. |
| Summary |
The case revolves around the interpretation of the Income Tax Ordinance, 2001, specifically regarding the retrospective applicability of amendments made through the Finance Act, 2019. The Lahore High Court examined whether the Commissioner had the authority to amend assessments without issuing a mandatory audit report. The judgment emphasizes the importance of due process and adherence to statutory requirements, reinforcing taxpayers' rights. The decision highlights the legal principle that changes in substantive law should not adversely affect vested rights, ensuring fair treatment under the Income Tax Ordinance. The court's ruling provides clarity on the procedural requirements for tax assessments, making it a significant reference for future cases involving income tax audits. |
| Court |
Lahore High Court, Multan Bench
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD SAJID MEHMOOD SETHI,
RAHEEL KAMRAN
|
| Lawyers |
Agha Muhammad Akmal Khan,
Niaz Ahmed Khan
|
| Petitioners |
COMMISSIONER INLAND REVENUE
|
| Respondents |
ZIA-UR-REHMAN
|
| Citations |
2024 SLD 3178,
2024 PTD 1029
|
| Other Citations |
Commissioner Inland Revenue, Lahore v. Asif Kamal 2022 PTD 965,
Commissioner Inland Revenue, Sialkot and others v. Messrs Allah Din Steel and Rolling Mills and others 2018 SCMR 1328
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
120,
122,
122(4),
177,
177(6),
177(6A),
10A
|