| Case ID |
ed8b1b4f-19e2-433a-add1-b8308c45a880 |
| Body |
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| Case Number |
Income Tax References Nos. 73 to 76 of 2014 |
| Decision Date |
Feb 13, 2016 |
| Hearing Date |
|
| Decision |
The Islamabad High Court determined that the Appellate Tribunal Inland Revenue failed to properly appreciate the legal provisions concerning the grant of stay and the right to appeal against orders made by the Commissioner Inland Revenue (Appeals). The court emphasized that the appeal against the refusal to grant an injunctive order is independent of the appeal against the assessment order. Furthermore, it ruled that the Appellate Tribunal was competent to grant a stay against recovery of tax even when the assessment order was not upheld. Consequently, the court set aside the consolidated order of the Appellate Tribunal and remanded the case for a fresh decision, highlighting the need for the Tribunal to consider the implications of denying the stay on the taxpayer's rights and the potential irreparable loss that could occur. |
| Summary |
The case revolves around the interpretation of the Income Tax Ordinance, 2001, specifically concerning the rights of taxpayers to seek injunctive relief against tax recovery actions. The Islamabad High Court addressed the consolidated references filed by PAK GULF CONSTRUCTION (PVT.) LTD. against the decision of the Appellate Tribunal Inland Revenue, which had dismissed their applications for stay concerning tax recovery. The court highlighted the importance of understanding the legislative intent behind the provisions of the Income Tax Ordinance, particularly sections 127 and 131, which govern the appeals process and the grant of stay orders. This landmark ruling reinforces the legal standing of taxpayers to challenge tax recovery actions and emphasizes that the right to appeal is not limited to final orders but extends to any order made by the Commissioner Inland Revenue. The decision is critical for tax law practitioners and businesses facing similar tax recovery issues, as it clarifies procedural rights and the courts' stance on taxpayer protections. |
| Court |
Islamabad High Court
|
| Entities Involved |
COMMISSIONER INLAND REVENUE,
PAK GULF CONSTRUCTION (PVT.) LTD.
|
| Judges |
NOOR-UL-HAQ N. QURESHI, JUSTICE,
ATHAR MLNALLAH, JUSTICE
|
| Lawyers |
Saad M. Hasmi for Applicant,
M. Irshad Chaudhry for Respondent
|
| Petitioners |
PAK GULF CONSTRUCTION (PVT.) LTD.
|
| Respondents |
COMMISSIONER INLAND REVENUE
|
| Citations |
2016 SLD 322,
2016 PTD 1061,
2016 PLJ 310,
(2018) 117 TAX 69
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
127,
131,
131(1),
131(5),
133
|