| Case ID |
3ccf9917-677e-471a-b5fd-c637f38286df |
| Body |
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| Case Number |
Constitutional Petitions Nos. D-343 and 344 of 198 |
| Decision Date |
May 22, 1988 |
| Hearing Date |
Mar 15, 1988 |
| Decision |
The Sindh High Court dismissed the constitutional petitions filed by Shahabuddin, challenging the issuance of a show-cause notice under section 66-A of the Income Tax Ordinance, 1979. The court held that the Inspecting Assistant Commissioner had the authority to revise the Income Tax Officer's order if it was found to be erroneous and prejudicial to the revenue. The court emphasized that the discretion exercised by the Inspecting Assistant Commissioner must be based on well-settled principles and should not be arbitrary. The arguments regarding the merger of the assessment order with the Commissioner's approval were rejected, as it was established that the approval was not granted for the assessment made. The court highlighted that the petitioner had not availed of the statutory remedy provided under the Income Tax Ordinance and had rushed to the High Court prematurely. Consequently, the notice issued by the Inspecting Assistant Commissioner was deemed valid and not arbitrary. |
| Summary |
In the case of Shahabuddin vs. Inspecting Assistant Commissioner of Income Tax, the Sindh High Court addressed the powers of the Inspecting Assistant Commissioner under section 66-A of the Income Tax Ordinance, 1979. The petitioner, Shahabuddin, contested the issuance of a show-cause notice, arguing that the assessment order was valid based on prior approvals. The court clarified that the Inspecting Assistant Commissioner could intervene if the assessment was found erroneous and detrimental to revenue collection. The judgment reinforced the principle that administrative discretion must adhere to established legal standards and not be exercised capriciously. The court ultimately dismissed the petitions, emphasizing the importance of following statutory procedures before seeking constitutional relief. This case significantly impacts tax administration and the interpretation of the Income Tax Ordinance, particularly regarding the roles of various tax authorities and their powers. Keywords: Income Tax Ordinance, Inspecting Assistant Commissioner, tax assessment, Sindh High Court, legal discretion, revenue collection, constitutional jurisdiction. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
Saleem Akhtar,
Sajjad Ali Shah,
Shahabuddin
|
| Lawyers |
Sirajul Haq,
Shaikh Haider
|
| Petitioners |
SHAHABUDDIN
|
| Respondents |
4 others,
INSPECTING ASSISTANT COMMISSIONER OF Income tax, RANGE I, WEST ZONE, KARACHI
|
| Citations |
1988 SLD 78,
1988 PTD 723,
(1988) 58 TAX 106
|
| Other Citations |
C.I.T. v. K.K.D. Kharawala 23 ITR 412,
C.I.T. v. Amrat Lal Bhoji Lal 34 ITR 130,
Dawjee Dada Bhoy & Co. v. S.P. Jain and another (1957) 31 ITR 372,
Commissioner of Income-tax v. M. Iqbal Saigal PLD 1976 Lah. 547,
Tera Devi Aggarwal v. C.I.T. (1973) 88 ITR 323
|
| Laws Involved |
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973
|
| Sections |
66A,
59A(1),
56A,
199
|