| Case ID |
441fbe60-6f16-410c-8bec-8de9409a8024 |
| Body |
View case body. Login to View |
| Case Number |
Writ Petition No. 11510 of 1997 |
| Decision Date |
Apr 17, 2000 |
| Hearing Date |
Apr 07, 2000 |
| Decision |
The Lahore High Court ruled in favor of the petitioners, stating that the Director Finance of WAPDA was improperly treated as an assessee in default for non-deduction of tax on service charges paid to the Bank. The Court emphasized that the procedure for the collection of electricity bills clearly stated that no commission or charge was to be paid by WAPDA to the Banks. The Court found that the actions of the Assessing Officer and First Appellate Authority exceeded their jurisdiction and declared their orders to be without lawful authority and of no legal effect. Therefore, the petition was allowed. |
| Summary |
This case revolves around the legal interpretation of tax obligations under the Income Tax Ordinance, 1979, particularly regarding the responsibilities of the Water and Power Development Authority (WAPDA) in relation to service charges imposed by Banks for collecting electricity bills. The Lahore High Court examined the statutory provisions and procedural guidelines governing tax deductions at source. The Court found that WAPDA was not liable to deduct tax on the service charges levied by the Banks, as there was a clear directive prohibiting such charges. The decision emphasized the need for adherence to established procedures in tax matters, highlighting the legal definitions of 'assessee' and 'Principal Officer' within the context of the Income Tax Ordinance. The judgment underscores the importance of lawful authority in tax assessments and the necessity for tax authorities to operate within their jurisdiction. The ruling serves as a significant precedent for similar cases involving statutory bodies and their obligations under tax law. |
| Court |
Lahore High Court
|
| Entities Involved |
Water and Power Development Authority,
Banks,
Gujranwala
|
| Judges |
MALIK MUHAMMAD QAYYUM, J
|
| Lawyers |
Mian Ashiq Hussain for Petitioners,
Shahbaz Butt for Respondents
|
| Petitioners |
THE DIRECTOR FINANCE (A.E.B.), WATER AND POWER DEVELOPMENT AUTHORITY, GUJRANWALA
|
| Respondents |
COMMISSIONER OF Income Tax, GUJRANWALA ZONE, GUJRANWALA
|
| Citations |
2000 SLD 280,
2000 PTD 3396,
(2000) 82 TAX 127,
(2001) 83 TAX 8
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
50(4),
50(2),
2(29),
2(32),
2(34),
2(34)(a),
2(34B)
|