| Case ID |
f6edb123-d828-4d77-acf5-e96fb21d63cc |
| Body |
View case body. Login to View |
| Case Number |
Writ Petition No.3011 of 2006 |
| Decision Date |
Jan 12, 2007 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the writ petition filed by Sadiq Hussain Majid, proprietor of Messrs Al-Majid Electronics, challenging the legality of the income tax audit notice issued under section 177 of the Income Tax Ordinance, 2001. The court held that the issuance of the audit notice was valid under the amended provisions of the law as no prior show-cause notice was required. The court clarified that the circulars issued under the old law do not apply to the newly substituted provisions and emphasized the importance of following the new legal framework established by the Finance Act, 2004. The principle of audi alteram partem was discussed, stating that it applies when an adverse action is to be taken against a person, but in this case, the procedural requirements of the new law were fulfilled. |
| Summary |
In the case of Sadiq Hussain Majid vs. Secretary, Government of Pakistan, the Lahore High Court dealt with the legality of an audit notice issued under section 177 of the Income Tax Ordinance, 2001. The petitioner argued that the notice was issued without providing an opportunity for a hearing, which was claimed to be a violation of natural justice principles. The court examined the amendments made to section 177 by the Finance Act, 2004, which altered the procedures for selecting income tax returns for audit. The court held that the new provisions do not require a pre-selection show-cause notice, thus affirming the validity of the audit notice. This case highlights the significant changes in tax law and the implications for taxpayers, emphasizing the need for compliance with the updated legal framework. Key terms related to tax law and procedural fairness are discussed, making it a pertinent case for understanding the evolution of income tax regulations in Pakistan. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
SH. HAKIM ALI, J.
|
| Lawyers |
Shamshir Iqbal Chughtai,
Masud Ashraf Sheikh
|
| Petitioners |
Sadiq Hussain Majid
|
| Respondents |
SECRETARY, GOVERNMENT OF PAKISTAN and others
|
| Citations |
2007 SLD 174,
2007 PTD 2188
|
| Other Citations |
2005 PTD 152,
(2006) 94 Tax 317 (S.C. Pak.)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
177
|