| Case ID |
439d2cce-fd26-4ae6-99eb-e18271c9917e |
| Body |
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| Case Number |
W.P No. 202214 of 2018 |
| Decision Date |
Oct 15, 2018 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the constitutional petition filed by M/S Starlet Innovations (Pvt.) Ltd. against the notices issued under Section 177 of the Income Tax Ordinance, 2001. The petitioner had argued that filing a statement under Section 115(4) constituted a full and final discharge of tax liability and thus exempted them from audit. The court held that the petitioner could not evade audit simply due to the presumptive tax regime and that the provisions of Section 177 were applicable irrespective of whether a return under Section 114 was filed. The court emphasized that the law does not provide immunity from audit proceedings based on the status of tax liability and affirmed the validity of the impugned notices. |
| Summary |
In the case of M/S Starlet Innovations (Pvt.) Ltd. vs. Federation of Pakistan, the Lahore High Court addressed the issue of whether a taxpayer, who filed a statement under Section 115(4) of the Income Tax Ordinance, 2001, could be audited under Section 177. The petitioner contended that such a statement constituted a full discharge of tax liability, thus exempting them from audit. However, the court ruled that the Income Tax Ordinance does not allow taxpayers to escape audit obligations merely due to their filing status. The decision highlighted the importance of compliance with tax regulations and the authority of the Commissioner to conduct audits. This case underscores the significance of understanding the legal framework surrounding tax liabilities, especially for entities operating under a presumptive tax regime. Keywords such as 'Income Tax Ordinance', 'tax liability', and 'audit proceedings' are crucial for navigating the complexities of tax law in Pakistan. |
| Court |
Lahore High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
M/S STARLET INNOVATIONS (PVT.) LTD.
|
| Judges |
SHAHID KARIM
|
| Lawyers |
Kh. Farooq Saeed,
Mr. Abdullah Akhtar Butt,
Mr. Shahid Sharif,
Mr. Abdul Waheed Khan,
Mr. Tahir Mahmood Ahmad Khokhar
|
| Petitioners |
M/S STARLET INNOVATIONS (PVT.) LTD.
|
| Respondents |
FEDERATION OF PAKISTAN & OTHERS
|
| Citations |
2018 SLD 2412,
2018 LHC 2500,
2019 PTD 60,
(2019) 119 TAX 65
|
| Other Citations |
2016 PTD 1168,
2013 PTD 1552,
2018 PTD 208
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
5,
6,
7,
114,
114(4),
115,
115(4),
120,
120(4),
148,
151,
152,
153(3),
154,
154(4),
156,
156A,
169(3),
177,
214C,
199
|