| Case ID |
15bd778f-9ef9-4e18-bc22-9a2000a4a618 |
| Body |
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| Case Number |
WRIT PETITION No. 4793 of 2016 |
| Decision Date |
Feb 25, 2021 |
| Hearing Date |
Feb 25, 2021 |
| Decision |
In the case of M/S First Micro Finance Bank Ltd. vs. Federation of Pakistan, the Islamabad High Court addressed the grievances of the petitioner regarding notices issued under the Income Tax Ordinance, 2001. The notices pertained to advance tax payments and property attachment due to non-compliance with tax obligations. The court emphasized the rights of taxpayers to submit estimates of advance tax, stating that the taxation authorities lacked jurisdiction to disregard these estimates. Ultimately, the court ruled in favor of the petitioner, declaring the impugned notices void ab initio due to lack of legal authority, reinforcing the principle of self-assessment in tax matters. |
| Summary |
The Islamabad High Court's decision in the case of M/S First Micro Finance Bank Ltd. vs. Federation of Pakistan highlights crucial aspects of the Income Tax Ordinance, 2001, particularly regarding advance tax payments. The case stems from notices issued by the taxation authorities that the petitioner argued were unjustified. The court scrutinized the provisions of section 147 of the Ordinance, which allows taxpayers to estimate their advance tax liability. It was determined that the authorities had overstepped their legal bounds by attempting to challenge the estimates provided by the taxpayer. The judgment reinforces the importance of self-assessment in taxation, ensuring that taxpayers can exercise their rights without undue interference from tax authorities. This ruling is significant for financial institutions and other businesses, emphasizing the need for compliance with tax regulations while protecting taxpayer rights. The court's decision underscores the balance between regulatory authority and taxpayer autonomy, a critical consideration in the realm of taxation law. |
| Court |
Islamabad High Court
|
| Entities Involved |
Not available
|
| Judges |
BABAR SATTAR, JUSTICE
|
| Lawyers |
Hafiz Muhammad Idrees,
Syed Farid Bukhari
|
| Petitioners |
M/S FIRST MICRO FINANCE BANK LTD.
|
| Respondents |
FEDERATION OF PAKISTAN
|
| Citations |
2021 SLD 571 = (2022) 126 TAX 408
|
| Other Citations |
2011 PTD 476,
2011 PTD 1996
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
113,
113C,
131,
137,
137(2),
138(1),
140,
147,
147(1),
147(4),
147(6),
168
|