| Case ID |
223dc2ca-4bc0-497b-969b-904bb1e59640 |
| Body |
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| Case Number |
P.T.R. Nos. 20 to 33 of 1998 |
| Decision Date |
Oct 11, 2001 |
| Hearing Date |
Oct 11, 2001 |
| Decision |
The Lahore High Court ruled that the questions posed by the Commissioner of Income-tax regarding the dismissal of the reference application were not entertainable under section 136(2) of the Income Tax Ordinance, 1979. The court found that the stay order in criminal proceedings against the assessee did not apply to penalty proceedings under section 28 of the Income Tax Act, 1922. It was determined that while penalty proceedings are not strictly criminal in nature, they are quasi-criminal and can run parallel to criminal prosecutions. The court upheld the findings of the First Appellate Authority, which had declared the penalties null and void, emphasizing the importance of the stay order from the Supreme Court in relation to criminal proceedings. |
| Summary |
This case revolves around the Income Tax Ordinance, 1979 and the Income Tax Act, 1922, focusing on the procedural aspects of tax appeals and penalties. The Lahore High Court addressed critical issues regarding the authority of the Income Tax Appellate Tribunal and the implications of stay orders from higher courts on penalty proceedings. The case highlights the nuances of tax law, particularly the distinction between civil liabilities and criminal sanctions in the context of tax penalties. The decision emphasized that penalty proceedings under the Income Tax Ordinance are quasi-criminal, suggesting that taxpayers may face significant legal challenges. This ruling is crucial for tax practitioners and individuals facing tax-related disputes, as it clarifies the legal landscape surrounding tax appeals and the enforcement of penalties. Understanding these legal principles is essential for navigating the complexities of tax law effectively. Key terms include Income Tax Ordinance, quasi-criminal proceedings, and tax penalties. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
NASIM SIKANDAR,
MANSOOR AHMAD
|
| Lawyers |
Mian Yousaf Umar for Petitioner,
Nemo for Respondents
|
| Petitioners |
COMMISSIONER OF Income Tax/Wealth Tax, Zone-B, Lahore
|
| Respondents |
Makhdoom Zada Syed HASSAN MEHMOOD through Legal Heirs and 81 others
|
| Citations |
2002 SLD 64,
2002 PTD 381,
(2002) 85 TAX 499
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979,
Income Tax Act, 1922
|
| Sections |
136,
136(1),
135,
108,
115,
117,
122,
28(3),
28,
51
|