2026 PLP 648 (PTD)
PAKISTAN INTERNATIONAL AIRLINES CORPORATION Versus COMMISSIONER INLAND REVENUE and others
| Citation | 2026 PLP 648 (PTD) |
| Forum / Court | Sindh High Court |
| Bench Members | Muhammad Junaid Ghaffar, ACJ and Muhammad Abdur Rahman, J |
| Parties | PAKISTAN INTERNATIONAL AIRLINES CORPORATION Versus COMMISSIONER INLAND REVENUE and others |
| Primary Law | Federal Excise Act (VII of 2005) |
Q1: What are the key laws and sections cited in 2026 PLP 648 (PTD)?
This judgment primarily cites: Federal Excise Act (VII of 2005) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2026 PLP 648 (PTD)?
The case was heard and decided by the Sindh High Court bench comprising: Muhammad Junaid Ghaffar, ACJ and Muhammad Abdur Rahman, J.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2026 PLP 648 (PTD) (PAKISTAN INTERNATIONAL AIRLINES CORPORATION Versus COMMISSIONER INLAND REVENUE and others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Zakia Jatoi holding brief for Ameer Bakhsh Metlo for Respondent.
Headnotes / Summary
S.38
Income Tax Ordinance (XLIX of 2001), S. 134-A
State-Owned Enterprises (Governance and Operations) Act (VII of 2023), S.2(o)
Adverse orders passed against State-Owned Enterprises
Pakistan International Airline Corporation (PIAC) is a State Owned Enterprise (SOE) in terms of State Owned Enterprise (Governance and Operations) Act, 2023, and pursuant to S. 38 of Federal Excise Act, 2005 read with S. 134A of Income Tax Ordinance, 2001, a mechanism has been provided for SOE to approach Federal Board Revenue (FBR) in respect of adverse orders passed by the Inland Revenue Department ; it is mandatory for SOE to go for Alternate Dispute Resolution (ADR) , whereas the limit of Rs. 50 Million is not applicable ; which is applicable in the matter of Applicant (PIAC) being a SOE ; and matter may be referred to Dispute Resolution Committee (Committee)
High Court referred to the matter to FBR to form a Committee for final decision
Special Federal Excise Reference Application was disposed of accordingly. Commissioner Inland Revenue, Corporate Zone, Regional Tax Officer, Islamabad v. M/s. Islamabad Electric Supply Company Limited, (IESCO), Islamabad (Civil Petition No. 2106 of 2024); M/s. State Life Insurance Corporation of Pakistan v. The Assistant Commissioner of Income Tax, Karachi and others (Civil Appeals Nos. 649, 650, 651, 652 of 2022) and M/s. Trading Corporation of Pakistan v. The Commissioner of Income Tax, Karachi (Civil Petitions Nos. 886-K, 887-K and 888-K of 2023) ref. Uzair Shoro for Applicant.
Judgment & Decree
This Reference Application has been filed by Pakistan International Airlines Corporation against order dated 29.06.2017 passed by the Appellate Tribunal Inland Revenue, Karachi in FE No. 22/KB/2014. PIAC is a State Owned Enterprise in terms of State Owned Enterprises (Governance and Operation) Act, 2023 and pursuant to Section 38 of Federal Excise Act, 2005 read with 134A of the Income Tax Ordinance, 2001 a mechanism has been provided for State Owned Enterprises ( SOE ) to approach FBR in respect of adverse orders passed by the Inland Revenue Department. The most significant and the relevant amendment made, which in our view is fully applicable to the present Applicant, is that now it is mandatory for SOE to go for ADR, whereas the limit of Rs. 50 Million is also not applicable. When confronted as to the above provision Counsel for PIAC / Applicant, submits that instructions are awaited. Whereas, Respondent s Counsel submits that even the Honourable Supreme Court has referred the matters filed by the Commissioner Inland Revenue to the Dispute Resolution Committee. He has placed on record copies of such orders passed in Civil Petition No. 2106 of 2024 (Commissioner Inland Revenue, Corporate Zone, Regional Tax Officer, Islamabad v. M/s Islamabad Electric Supply Company Limited, (IESCO), Islamabad), Civil Appeals Nos. 649, 650, 651, 652 of 2022 (M/s. State Life Insurance Corporation of Pakistan v. The Assistant Commissioner of Income Tax, Karachi and others) and Civil Petitions Nos. 886-K, 887-K and 888-K of 2023 (M/s. Trading Corporation of Pakistan v. The Commissioner of Income Tax, Karachi). In view of such position, this Reference Application is disposed of, whereas, in terms of Section 38 of Federal Excise Act, 2005 read with 134A of the Income Tax Ordinance, 2001, matter stands referred to FBR to form a Committee as required under the new amended provision and till such time the matter is finally decided by the said Committee, no coercive measures be adopted against the Applicant for recovery. Once a decision has been given by the Committee, the Applicant if aggrieved, may seek further remedy in accordance with law. With these observations, this Reference Application is hereby disposed of. MQ/P-4/Sindh Application disposed of.