| Case ID |
ed3e7923-d632-4407-80d4-b0331d94b5db |
| Body |
View case body. Login to View |
| Case Number |
C.As. Nos. 656 to 659 of 2011 |
| Decision Date |
Feb 24, 2020 |
| Hearing Date |
Feb 24, 2020 |
| Decision |
The Supreme Court of Pakistan ruled on the limitation period for the exercise of revisional power by the Commissioner under Section 25(2) of the Wealth Tax Act, 1963. The court found that the absence of a specified limitation period in Section 25(2) should be interpreted to align with the one-year limitation period prescribed in Section 25(1). The court emphasized the importance of protecting the revenue interests and preventing wealth from escaping assessment. The decision restored the order of the Commissioner dated 29.03.1990, determining that the revisional order was within the permissible time frame. Consequently, the appeals were allowed, and the orders of the lower courts were set aside. |
| Summary |
This case revolves around the interpretation of the Wealth Tax Act, 1963, specifically regarding the limitation period for revisional powers exercised by the Commissioner. The Supreme Court of Pakistan addressed whether the limitation period for the Commissioner’s revisional authority under Section 25(2) could be inferred from Section 25(1). The court concluded that the one-year limitation period for the latter applies to the former, thereby ensuring that the interests of revenue are safeguarded. The ruling highlights the critical balance between the rights of the taxpayer and the necessity of tax compliance, aiming to prevent wealth from evading assessment. This decision serves as a precedent for future cases involving tax assessments and the interpretation of statutory limitations, reinforcing the principle that when a statute is silent on a limitation period, a reasonable time frame should be applied. The court’s analysis also referenced prior case law to substantiate its findings, ensuring that the rulings align with established legal principles. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
UMAR ATA BANDIAL,
FAISAL ARAB
|
| Lawyers |
Mr. Riaz Hussain Azam, ASC,
Mansoor Akhtar, Chief Legal for Appellant,
Mr. M. Saleem Thepdawala, ASC for Respondents (in C.As. Nos. 656-657 of 2011)
|
| Petitioners |
COMMISSIONER INLAND REVENUE LEGAL DIVISION, RTO III KARACHI
|
| Respondents |
3 OTHERS,
MST. YASMEEN BANO
|
| Citations |
2021 SLD 2146,
2021 PLJ 140
|
| Other Citations |
PLD 2011 SC 842
|
| Laws Involved |
Wealth Tax Act, 1963
|
| Sections |
17,
17(b),
25(i),
25(ii)
|