| Case ID |
d686492f-4c1b-4938-9f05-174aac82cdbb |
| Body |
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| Case Number |
Constitution Petition No.D-378 of 2005 |
| Decision Date |
Jan 24, 2006 |
| Hearing Date |
Sep 27, 2005 |
| Decision |
The Sindh High Court ruled that the issuance of show-cause notices under section 122(5A) of the Income Tax Ordinance, 2001 was without jurisdiction and void ab initio as the assessments for the years 2000-2001 and 2001-2002 were finalized before the effective date of the amendment. The court emphasized that the conditions for exercising jurisdiction under subsection 5A require a prior assessment order to be in existence, which was not the case here. Therefore, the court quashed the notices and upheld the principle that the jurisdiction under subsection 5A is revisional in nature and should not be exercised retrospectively for assessments completed before the specified date. The decision serves as a significant precedent in tax law, clarifying the boundaries of the jurisdiction of tax authorities and protecting taxpayer rights against arbitrary actions. |
| Summary |
The case revolves around the taxation of the Fauji Oil Terminal and Distribution Company Limited (FOTCO) under the Income Tax Ordinance, 2001. The petitioner challenged the validity of show-cause notices issued by the Additional Commissioner under section 122(5A) concerning assessments for the tax years 2000-2001 and 2001-2002. The court examined the jurisdictional limits of the tax authorities in amending previously finalized assessments and clarified that such amendments cannot be made retroactively. The court's ruling emphasized the necessity of having an existing assessment order for invoking subsection 5A, thereby reinforcing taxpayer protections against potential misuse of power by tax officials. This case highlights important aspects of tax law, including the interplay between statutory provisions and the rights of taxpayers, making it a critical reference for future tax disputes. |
| Court |
Sindh High Court
|
| Entities Involved |
Port Qasim Authority,
Fauji Oil Terminal and Distribution Company Limited
|
| Judges |
MUHAMMAD MUJEEBULLAH SIDDIQUI,
KHILJI ARIF HUSSAIN
|
| Lawyers |
Khalid Anwar,
A.R. Akhtar
|
| Petitioners |
FAUJI OIL TERMINAL AND DISTRIBUTION COMPANY LTD., KARACHI
|
| Respondents |
2 others,
ADDITIONAL COMMISSIONER/TAXATION OFFICER-A, AUDIT DIVISION, KARACHI
|
| Citations |
2006 SLD 273,
2006 PTCL 268,
2006 PTD 734,
(2006) 93 TAX 84
|
| Other Citations |
Amin Textile Mills (Pvt.) Ltd. v. C.I.T. PTCL 2000 CL 316,
Honda Shahrahe Faisal v. Regional Commissioner of Income Tax and others C. P. No. D-643 of 2004
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
122,
122(5),
122(5A),
120,
114,
115,
153,
199
|