| Case ID |
14045c5d-42b6-4260-95e9-2d92c00acb06 |
| Body |
View case body. Login to View |
| Case Number |
W. P. No. 10593 of 2022 |
| Decision Date |
Apr 20, 2022 |
| Hearing Date |
Apr 20, 2022 |
| Decision |
The Lahore High Court ruled that an order passed by the Commissioner (Appeals) must be implemented unless reversed or suspended by a higher court. The court emphasized that an order which has attained finality, such as the one in favor of the petitioner, should not be delayed by the Commissioner filing a rectification application before the Appellate Tribunal. The court found that the Commissioner had a statutory obligation to issue an appeal effect order within two months under Section 124(4) of the Income Tax Ordinance, 2001, and that any pending rectification application could not justify non-implementation of the order. The decision underscored the importance of timely compliance with court orders in tax matters. |
| Summary |
In the landmark case of M/S Presson Descon International (Pvt.), Ltd. vs. Federation of Pakistan, the Lahore High Court examined the implications of the Income Tax Ordinance, 2001, specifically Sections 124 and 226. The case revolved around the Commissioner’s obligation to implement a final order passed by the Commissioner (Appeals) within a stipulated timeframe. The court ruled that the Commissioner could not delay the implementation by filing a rectification application, as such actions would undermine the finality of the order. This decision highlights critical aspects of tax law compliance, emphasizing the need for timely action in the face of statutory obligations. The ruling serves as a precedent for future cases involving the interpretation of tax laws and the responsibilities of tax authorities. It reinforces the principle that once a tax-related order is finalized, it must be executed promptly to ensure the rights of taxpayers are upheld. This ruling is particularly relevant in discussions surrounding tax compliance, legal obligations of tax authorities, and the interpretation of the Income Tax Ordinance, making it an essential reference for legal practitioners and tax professionals. |
| Court |
Lahore High Court
|
| Entities Involved |
|
| Judges |
SHAHID JAMIL KHAN, JUSTICE
|
| Lawyers |
Shahbaz Butt,
Ibrahim Hassan,
Asad Abbas Raza,
Muhammad Usman Zia,
Muhammad Ahsan Mahmood,
Muhammad Adnan Afzal,
Kashif Akbar Bandesha,
Salman Farooq,
M. Irfan Arif Sheikh,
Barrister Ahmed Pervaiz,
Saffi-ul-Hassan,
Mr. Asad Ali Bajwa
|
| Petitioners |
M/S PRESSON DESCON INTERNATIONAL (PVT.), LTD.
|
| Respondents |
FEDERATION OF PAKISTAN
|
| Citations |
2022 SLD 888 = (2022) 126 TAX 492
|
| Other Citations |
1992 PTD 570
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
124,
124(1),
124(2),
124(3),
124(4),
129,
132,
133,
148(7),
221,
226,
226(b)(ii)
|