PTD 2013

2013 PLP 1598 (PTD)

WARID TELECOM Versus COMMISSIONER INLAND REVENUE and others

Jurisdiction / Court
Islamabad High Court
Decided Date
I.C.A. No.552 of 2013, decided on 28th March, 2013.
Honorable Judges
Muhammad Anwar Khan Kasi, C.J. and Shaukat Aziz Siddiqui, J
Case Reference Summary (AEO Optimized)
Citation 2013 PLP 1598 (PTD)
Forum / Court Islamabad High Court
Bench Members Muhammad Anwar Khan Kasi, C.J. and Shaukat Aziz Siddiqui, J
Parties WARID TELECOM Versus COMMISSIONER INLAND REVENUE and others
Primary Law (a) Income Tax Ordinance (XLIX of 2001), (b) Interpretation of statutes
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in 2013 PLP 1598 (PTD)?

This judgment primarily cites: (a) Income Tax Ordinance (XLIX of 2001), (b) Interpretation of statutes as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case 2013 PLP 1598 (PTD)?

The case was heard and decided by the Islamabad High Court bench comprising: Muhammad Anwar Khan Kasi, C.J. and Shaukat Aziz Siddiqui, J.

Q3: What is the official citation format for this judgment on Pakistan Law Portal?

Cite this legal precedent as: 2013 PLP 1598 (PTD) (WARID TELECOM Versus COMMISSIONER INLAND REVENUE and others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

(a) Income Tax Ordinance (XLIX of 2001) (b) Interpretation of statutes

Representation

  • Ahmed Bashir and Kazim Jan for Appellant.
  • None for Respondents.
  • Date of hearing: 28th March, 2013.

Headnotes / Summary

Ss. 120, 177 [as amended by Finance Act (XVI of 2010)] & 214(c)

Constitution of Pakistan, Art. 199

Constitutional petition

Self -assessment finalized under S. 120 of Income Tax Ordinance, 2001

Notice under S.177(1) of Ordinance, 2001 issued to assessee requiring him to produce record/documents pertaining to such assessment for conducting tax audit by Commissioner

Assessee's plea was that self-assessment once finalized ' could not be reopened

Validity

Commissioner under 5.177 of Income Tax Ordinance, 2001 had power to conduct tax audit to verify assessment

Object of S. 177 of the Ordinance was not to frustrate self-assessment scheme

Section 214(c) of Income Tax Ordinance, 2001 empowered Board with a view to have a check upon subordinate authorities to confirm that assessment were properly made

Section 177 of the Ordinance was not violative of provisions of the Constitution

Constitutional petition was dismissed in circumstances.

Fiscal statute

Procedural provisions would be construed in a manner to advance object behind thereof.

Judgment & Decree

MUHAMMAD ANWAR KHAN KASI, C.J.

This I.C.A. challenges the judgment dated 12-3-2013 passed by learned Single Judge in Chambers by holding that section 177 of the Income Tax Ordinance, 2001 is not violative of any Article of the Constitution and cannot be treated as discriminatory, while section 214(c) of the Income Tax Ordinance is an independent section and is not subsequent to section 177.

2. It is inter alia contended that the learned Single Judge has failed to appreciate law and facts of the case, and misread the documentary evidence.

3. It is next submitted that the appellant had filed the complete Income Tax Return for the Tax year, 2009 on 5-1-2010, which was accepted and finalized under section 120 of the Income Tax Ordinance, 2001 and, therefore, the impugned notice dated 8-10-2010 issued by respondent No. 1 under section 177(1) of the Income Tax Ordinance, 2001 to furnish records/documents for the period relating to Tax year 2009 for conducting audit of Income Tax affairs is without any lawful justification.

4. It is also contended that the entire process starting from issuance of notice dated 8-10-2010 ending with issuance of show cause notice dated 19-1-2012 is based on mala fides and illegal.

5. Learned counsel also challenged the vires of section 177(1) of the Ordinance.

6. Heard and record perused.

7. Section 177 has been placed in Chapter 10 of the Income Tax Ordinance, 2001 and is prescribing the procedure and it is settled principle of law that procedural provisions must be construed to advance the object behind the provisions.

8. The commissioner under this section has the authority to conduct the audit of the Income Tax affairs including examination of accounts and records, whereafter he shall verify the assessment, therefore, section 177 cannot be said to frustrate self assessment scheme.

9. On the other hand, section 214(C) has been placed in Chapter-II of the Income Tax Ordinance, 2001, which relates to the administration of Tax Authorities and sections 214(b) and 214(c) prescribe the powers Il of Board to call for any record.

10. It is thus clear that the object of section 214(c) is to empower the Board to have a check upon the subordinate officers to confirm that assessments are properly made.

11. The learned Single Judge discussed all the aspects of the case and came to the conclusion that section 177(i) is not contrary to the provisions of the Articles of the Constitution and the respondent under law has the authority to ask for the audit of the accounts of the Income Tax payers.

12. We, therefore, see no reason to interface in impugned Judgment and the appeal is, therefore, dismissed in limine. SAK/102/Isl Appeal dismissed.