| Case ID |
3225b14b-a6fc-4df9-ace6-42539bd09d16 |
| Body |
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| Case Number |
Writ Petition No.4603 of 1997 |
| Decision Date |
May 31, 2002 |
| Hearing Date |
May 31, 2002 |
| Decision |
The Lahore High Court ruled that the demand for additional tax from the Municipal Committee was illegal. The court established that the Assessing Officer had issued a clearance certificate after the payment of an instalment of advance tax, and there was no indication of any delayed payment. The court emphasized that once the clearance was issued, the Assessing Officer could not later claim that the payment by instalment was unjustified. The demand for additional tax against the Municipal Committee, as the contract awarding agency, was declared illegal. |
| Summary |
This case revolves around the legality of a demand for additional tax imposed on the Municipal Committee of Muridke. The Lahore High Court examined whether the Assessing Officer had the jurisdiction to require the Committee to pay additional tax due to alleged failure to deduct tax at source from an assessee contractor. The court found that the Assessing Officer had previously issued a clearance certificate after the contractor made an advance tax payment, which did not mention any delay. The ruling emphasized the principle that once a payment is acknowledged through a clearance certificate, the authority cannot later claim that the payment was unjustified, thereby upholding the rights of the Municipal Committee against unwarranted tax demands. This decision is pivotal for understanding tax obligations and the authority of tax officers in Pakistan. |
| Court |
Lahore High Court
|
| Entities Involved |
MUNICIPAL COMMITTEE, MURIDKE, DISTRICT SHEIKHUPURA,
ASSISTANT COMMISSIONER OF Income Tax/Wealth Tax, Circle 22, Mandi Bahauddin
|
| Judges |
Naseem Sikandar, J
|
| Lawyers |
Jahangir A. Jojha for Petitioner,
Mian Ashiq Hussain for Respondents
|
| Petitioners |
MUNICIPAL COMMITTEE, MURIDKE, DISTRICT SHEIKHUPURA
|
| Respondents |
another,
ASSISTANT COMMISSIONER OF Income Tax/Wealth Tax, Circle 22, Mandi Bahauddin
|
| Citations |
2002 SLD 370 = 2002 PTD 2378
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973
|
| Sections |
50,
50(7A),
86,
199
|