| Case ID |
20dc2944-3304-4a55-a5db-704d05c75d0e |
| Body |
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| Case Number |
Civil Appeal No. 24 of 2015 |
| Decision Date |
Nov 04, 2022 |
| Hearing Date |
Sep 16, 2022 |
| Decision |
The Supreme Court of Pakistan dismissed the appeal regarding the Wealth Tax Act, 1963. The case involved a dispute over the assessment of wealth tax due to the non-filing of returns by the assessee for the relevant years. The Court determined that the authorities did not have the power to issue a notice under Section 14(2) of the Wealth Tax Act for previous years when the assessment had escaped. Instead, the appropriate action should have been taken under Section 17 of the Act. The decision emphasized the importance of adhering to the legislative intent and applying the correct legal provisions to avoid redundancy in the law. |
| Summary |
In the case of Pakistan Telecommunication Company Ltd. vs. Collector of Customs, Karachi, the Supreme Court of Pakistan addressed the complexities surrounding the Wealth Tax Act, 1963. The primary issue was the assessment of wealth tax on the appellant for the year prior to the previous year, specifically due to the non-filing of a wealth tax return. The Court held that the authorities were not empowered to issue a notice under Section 14(2) concerning a year prior to the previous year since the wealth had escaped assessment. Instead, they should have issued a notice under Section 17 of the Wealth Tax Act. This ruling underscores the necessity for tax authorities to comply with established legal frameworks and highlights the significance of the valuation date in wealth tax assessments. The decision not only clarifies the jurisdictional boundaries for tax assessments but also reinforces the legal principle that no provision of law should be rendered redundant. This case serves as a crucial reference for future tax assessments and the interpretation of legislative provisions in Pakistan. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Pakistan Telecommunication Company Ltd.,
Collector of Customs, Karachi
|
| Judges |
Qazi Faez Isa,
Yahya Afridi,
Muhammad Ali Mazhar
|
| Lawyers |
Faisal Siddiqi,
Khizar Ali Khan,
Raja Muhammad Iqbal,
Jalal Zaidi,
Kafeel Ahmed Abbasi,
Arshad Siraj Memon
|
| Petitioners |
Pakistan Telecommunication Company Ltd.
|
| Respondents |
Collector of Customs, Karachi
|
| Citations |
2023 SLD 84,
2023 PTD 241
|
| Other Citations |
Aftab Shaban Mirani v. Muhammad Ibrahim PLD 2008 SC 779,
Collectorate of Sales Tax and Central Excise Enforcement and another v. Mega Tech (Pvt.) Ltd., 2005 SCMR 1166
|
| Laws Involved |
Wealth Tax Act, 1963,
Income Tax Ordinance, 1979
|
| Sections |
10(5),
14(2),
15,
16(2),
16(3),
17,
17(2),
22(2),
34,
56,
65
|