| Case ID |
25a422f5-be0e-4645-98a8-b4b67d3db6c1 |
| Body |
View case body. Login to View |
| Case Number |
W.P. No. 202214 of 2018 |
| Decision Date |
|
| Hearing Date |
Oct 15, 2018 |
| Decision |
The Lahore High Court dismissed the constitutional petition filed under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973. The petitioner, Messrs Starlet Innovations (Pvt.) Ltd., argued that they had filed a statement under Section 115(4) of the Income Tax Ordinance, 2001, which constituted a 'full and final discharge of its tax liability.' However, the court found that the petitioner had not provided any legal basis to challenge the audit notices issued under Section 177 of the Ordinance. The court highlighted that the provisions of the Ordinance allow for audits regardless of whether a return was filed under Section 114 or a statement under Section 115. It was noted that the petitioner’s income tax affairs remained subject to audit proceedings, and therefore, the challenge against the audit notices lacked lawful justification. Consequently, the court upheld the validity of the notices and dismissed the petition. |
| Summary |
In the case of Messrs Starlet Innovations (Pvt.) Ltd. vs. Federation of Pakistan, the Lahore High Court addressed the implications of the Income Tax Ordinance, 2001, particularly focusing on audit provisions under Section 177. The petitioner contended that their filing of a statement under Section 115(4) should exempt them from audits, citing it as a final discharge of tax liability. However, the court clarified that such a filing does not negate the authority of tax officials to conduct audits. This ruling underscores the importance of compliance with tax regulations and the potential for audits regardless of the nature of tax filings. The case emphasizes the need for taxpayers to understand their obligations under the Income Tax Ordinance and the circumstances under which audits may be initiated. The decision serves as a significant reference for tax practitioners and businesses involved in export, particularly those operating under presumptive tax regimes. The court's interpretation of the law reinforces the idea that all taxpayers, regardless of their filing status, remain subject to scrutiny by tax authorities, thereby ensuring accountability within the tax system. |
| Court |
Lahore High Court
|
| Entities Involved |
Federal Board of Revenue,
Messrs Starlet Innovations (Pvt.) Ltd.
|
| Judges |
SHAHID KARIM, JUSTICE
|
| Lawyers |
|
| Petitioners |
Kh. Farooq Saeed,
Abdullah Akhtar Butt,
Shahid Sharif
|
| Respondents |
Abdul Waheed Khan
|
| Citations |
2019 SLD 13 = 2019 PTD 60
|
| Other Citations |
2016 PTD 1168,
2013 PTD 1552,
2018 PTD 208
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
114,
115(4),
120,
154,
169(3),
177
|