| Case ID |
5c747579-c3af-45e2-bf03-4c8f6f9c4867 |
| Body |
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| Case Number |
Constitutional Petition No. 372 of 1987 |
| Decision Date |
Feb 28, 1990 |
| Hearing Date |
Jan 09, 1990 |
| Decision |
The High Court ruled that the Income Tax Officer's actions to reopen the assessment were based on mere change of opinion rather than on definite information, violating the provisions of Section 65 of the Income Tax Ordinance, 1979. Since the original assessment had been fully disclosed and considered, and no new facts were discovered, the reopening was held to be without jurisdiction. The Court emphasized that actions taken without jurisdiction would render all subsequent orders invalid, and thus the impugned notice was declared null and void. Consequently, the entire assessment process initiated by the Income Tax Officer following that notice was also invalidated. |
| Summary |
In the case of Philips Electrical Company of Pakistan (Pvt.) Limited vs. Income Tax Officer, the Sindh High Court addressed the legality of the Income Tax Officer's decision to reopen an assessment under Section 65 of the Income Tax Ordinance, 1979. The petitioner challenged the reopening, arguing it was based on a change of opinion rather than on definitive information, which is a requirement for such action. The court found that the original assessment was made based on all relevant facts, and there were no new facts presented that justified reopening the case. This case underscores the importance of adhering to legal standards when considering tax assessments. The court's ruling clarifies that reopening assessments based solely on differing interpretations of existing information is not permissible. The judgment serves as a precedent for future cases involving tax assessments and the interpretation of the Income Tax Ordinance, emphasizing the need for clear, definitive information before reassessing taxpayer obligations. |
| Court |
Sindh High Court
|
| Entities Involved |
Philips Electrical Company of Pakistan (Pvt.) Limited,
Income Tax Officer, Companies Circle B 3, Karachi,
Elmac Limited
|
| Judges |
SALEEM AKHTAR,
IMAM ALI KAZI
|
| Lawyers |
Ali Athar,
Shaikh Haider
|
| Petitioners |
PHILIPS ELECTRICAL COMPANY OF PAKISTAN (PVT.) LIMITED
|
| Respondents |
another,
Income Tax OFFICER, COMPANIES CIRCLE B 3, KARACHI
|
| Citations |
1990 SLD 49,
1990 PTD 389,
(1990) 61 TAX 159
|
| Other Citations |
Edulji Dinshaw Limited v. The Income Tax Officer (Appeal No.K 1 of 1983),
Gemini Leather Stores v. I.T.O. AIR 1975 S.C. 1268,
Jahawarlal Daryabuxmal v. Commissioner of Income Tax (1982) 137 ITR 54,
Commissioner of Income Tax v. Janab S. Khadirwalli Sahib (1951) 20 ITR 308,
Y. Narayana Chetty and others v. Income Tax Officer, Nellore and others (1959) 35 ITR 388,
Bhambore Ceramic Industries v. Income Tax Officer, Circle F 3, South Zone, Karachi C.P.D 447 of 1988,
Jeson International (Pvt.) Ltd. v. Income Tax Officer, Karachi 1989 P T D 1141
|
| Laws Involved |
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973
|
| Sections |
65,
154(6),
199
|