| Case ID |
323c0859-0158-4436-8ab7-df2c2cc54bc1 |
| Body |
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| Case Number |
Civil Appeal Nos. 25-D and 26-D of 1966 |
| Decision Date |
Jul 01, 1969 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled that certificate proceedings cannot commence against a person who denies being a member of the assessee-firm without first serving them a demand notice as required by Section 29 of the Income Tax Act and Section 12 of the Sales Tax Act. The court emphasized the necessity of due process and the right to be heard, asserting that any obligation imposed on an individual without proper notice is unlawful. Thus, the appeals brought by the Commissioner of Income Tax were dismissed with costs, affirming the High Court's decision to set aside the certificate proceedings. |
| Summary |
In the landmark case of Civil Appeal Nos. 25-D and 26-D of 1966, the Supreme Court of Pakistan addressed critical issues regarding tax law and procedural fairness. The case revolved around the authority of the Income Tax Department to initiate recovery proceedings against individuals who contest their membership in an assessee-firm. The court underscored the importance of adhering to statutory requirements, particularly the necessity of serving a demand notice before proceeding with recovery actions. This ruling has significant implications for tax law compliance and the rights of individuals in tax matters. The decision reinforces the principle that no individual should be subjected to tax liabilities without being afforded an opportunity to contest their liability. The case highlights the intersection of tax obligations and the fundamental rights of individuals, providing a precedent for future tax-related disputes and ensuring that procedural safeguards are upheld in tax enforcement actions. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
HAMOODUR REHMAN C.J.,
MUHAMMAD YAQUB ALI,
SAJJAD AHMAD,
ABDUS SATTAR
|
| Lawyers |
Afzalul Haque, Advocate Supreme Court instructed by A.M. Khan Chowdhury, Senior Attorney,
Syed Ishtiaq Ahmad, Advocate Supreme Court instructed by A.W. Malik Attorney
|
| Petitioners |
COMMISSIONER OF Income Tax EAST PAKISTAN AND 2 OTHERS
|
| Respondents |
ANOTHER,
ASWAB ALI
|
| Citations |
1975 SLD 370,
(1975) 31 TAX 101
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922,
Sales Tax Act, (III of 1951)
|
| Sections |
29,
66(1),
23(4),
46(2),
44,
12
|