| Case ID |
23495a8a-f003-42dd-88a7-54a7a8ac50ed |
| Body |
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| Case Number |
Constitutional Petition No.483 of 1987 |
| Decision Date |
May 25, 1988 |
| Hearing Date |
|
| Decision |
By this common order, the Sindh High Court intends to dispose of the Miscellaneous Application filed in the aforementioned ten petitions. The respondent seeks to be allowed to proceed with the income tax assessment as it would become time-barred on June 30, 1988. The court examined the differing facts between C.P. No.D-372/87 and the other ten petitions, noting that in the former, a refund voucher was issued and later nullified by a Section 65 notice, whereas in the latter, the notices under Section 65 aimed to reverse Tribunal and departmental orders spanning over a decade. The department contended that the notices were lawfully issued despite an escape of assessment. Counsel for the respondent, Mr. Shaikh Haider, argued based on Article 199 (4-A) of the Constitution that no stay order can exceed six months, citing relevant case law to support the extension of the assessment period. Conversely, counsel for the petitioner, Mr. Ali Athar, referenced a recent unreported order that conditioned the implementation of assessment orders pending petition disposal. The court found the respondent's cited cases inapplicable to the present case and, adhering to the aforementioned unreported order with modifications, permitted the respondent to issue assessment orders. However, these orders would remain unimplemented until six months from the date of issuance or until the petitions are resolved, whichever occurs first. The court scheduled the petitions for a regular hearing upon the Court's re-opening after the summer vacation. |
| Summary |
In the landmark case of Constitutional Petition No.483 of 1987, adjudicated by the Sindh High Court on May 25, 1988, the court addressed significant issues pertaining to the Income Tax Ordinance, 1979, specifically Section 65, and the Constitution of Pakistan, 1973, Article 199. The petitioners, represented by ADAM FOUNDATION and counseled by Ali Athar, challenged a notice issued under Section 65 by the Income Tax Officer, seeking to invoke the Constitutional jurisdiction of the High Court. The respondents, represented by Shaikh Haider, argued for the continuation of the income tax assessment, highlighting the impending time-bar from June 30, 1988.
The court meticulously analyzed the distinctions between this case and previous petitions, particularly referencing C.P. No.D-372 of 1987, and other significant cases like Messrs Saddiqi Trust v. Income Tax Officer (1978 CLC 366) and Federation of Pakistan v. United Sugar Mills Ltd. (1977 S.C. 397). The defense emphasized the legality of the Section 65 notices despite the alleged escape of assessment, while the counsel for the respondent invoked Article 199 (4-A) to argue against prolonged stay orders, citing relevant judgments to bolster their stance.
Ultimately, the Sindh High Court ruled in favor of the respondents, allowing the issuance of assessment orders under specific conditions. These orders would remain unexecuted for six months or until the resolution of the petitions, ensuring that the assessment process could proceed without being prematurely time-barred. The decision underscores the delicate balance between enforcing tax laws and upholding constitutional protections, setting a precedent for future income tax disputes and the interpretation of constitutional provisions related to judicature and statutory obligations. This case highlights the critical interplay between legal procedures, statutory deadlines, and constitutional safeguards, offering valuable insights for legal professionals and entities navigating the complexities of income tax law in Pakistan. |
| Court |
Sindh High Court
|
| Entities Involved |
Income Tax Officer,
Messrs Saddiqi Trust,
Secretary of Finance, Government of Pakistan Islamabad,
United Sugar Mills Ltd., Karachi
|
| Judges |
AJMAL MIAN,
AGHA ABDUL RASUL
|
| Lawyers |
Ali Athar,
Shaikh Haider
|
| Petitioners |
ADAM FOUNDATION
|
| Respondents |
Income Tax OFFICER
|
| Citations |
1989 SLD 51 = 1989 PTD 343
|
| Other Citations |
Messrs Saddiqi Trust v. Income-tax Officer and others 1978 CLC 366,
Secretary of Finance, Government of Pakistan Islamabad etc. v. United Sugar Mills Ltd., Karachi PLD 1977 SC 397,
C.P. No.D-372 of1987 fol.
|
| Laws Involved |
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973
|
| Sections |
65,
199
|