2022 PLP 1263 (PTD)
Messrs PAKISTAN HOUSING AUTHORITY FOUNDATION Versus The COMMISSIONER INLAND REVENUE APPEAL and others
| Citation | 2022 PLP 1263 (PTD) |
| Forum / Court | Islamabad High Court |
| Bench Members | Aamer Farooq, J |
| Parties | Messrs PAKISTAN HOUSING AUTHORITY FOUNDATION Versus The COMMISSIONER INLAND REVENUE APPEAL and others |
| Primary Law | Income Tax Ordinance (XLIX of 2001) |
Q1: What are the key laws and sections cited in 2022 PLP 1263 (PTD)?
This judgment primarily cites: Income Tax Ordinance (XLIX of 2001) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2022 PLP 1263 (PTD)?
The case was heard and decided by the Islamabad High Court bench comprising: Aamer Farooq, J.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2022 PLP 1263 (PTD) (Messrs PAKISTAN HOUSING AUTHORITY FOUNDATION Versus The COMMISSIONER INLAND REVENUE APPEAL and others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Syyid Murtaza Ali Pirzada for Petitioner.
Headnotes / Summary
Ss.127 & 128
Appeal to Commissioner (Appeals)
Scope
Petitioner sought direction to the Commissioner (Appeals) to decide its pending appeal and stay application and in the meanwhile sought a restraining order against the department from initiating recovery proceedings in pursuance of recovery notice
Taxpayer was entitled to adjudication in respect of his disputed tax liabilities by at least one independent forum outside hierarchy of the department
Constitutional petition was disposed of with direction to the Commissioner (Appeals) to hear and decide the appeal and stay application within a period of sixty days and till then no coercive measures were to be adopted by the department. Messrs Pak Saudi Fertilizers Ltd. v. Federation of Pakistan and others 2002 PTD 679; Z.N. Exporters (Pvt.) Ltd. v. Collector of Sales Tax 2003 PTD 1746 and Brothers Engineering (Pvt.) Ltd. v. Appellate Tribunal Sales Tax 2003 PTD 1836 ref. Mehram Ali v. Federation of Pakistan and others PLD 1998 SC 1445 rel.
Judgment & Decree
AAMER FAROOQ, J.
This is second writ petition on the subject, filed under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973 in which the petitioner has sought inter alia direction to respondent No.1 to decide its pending appeal and stay application and in the meanwhile restraining respondents Nos.3 and 4 from initiating the recovery proceedings in pursuance of recovery notice dated 08.02.2021 for the tax year 2013-2014.
2. Learned counsel for the petitioner submitted that the impugned notice is illegal, arbitrary and against the law. It was further contended that initiation of recovery proceedings during the pendency of petitioner's appeal and stay application is against its fundamental rights guaranteed under the Constitution. It was further contended that it is trite law that unless there is adjudication by one independent forum, no recovery proceedings can be initiated against the assessee. In this behalf learned counsel placed reliance on the case titled "Messrs Pak Saudi Fertilizers Ltd. v. Federation of Pakistan and others" (2002 PTD 679), "Z.N. Exporters (Pvt.) Ltd. v. Collector of Sales Tax" (2003 PTD 1746), "Brothers Engineering (Pvt.) Ltd. v. Appellate Tribunal Sales Tax" (2003 PTD 1836). Learned counsel further contended that this is second petition on the subject and the delay in decision of the appeal and stay application is not on part of the petitioner, therefore, impugned recovery notice dated 08.02.2021 may be suspended and recovery proceedings be stopped till the final decision of the appeal and stay application by respondent No.1.
3. The submissions made by the learned counsel for the petitioner have substance. In this behalf the Hon'ble Supreme Court of Pakistan in case titled "Mehram Ali v. Federation of Pakistan and others" (PLD 1998 SC 1445) has specifically held that there should be adjudication of grievance by an independent Tribunal and even Lahore High Court in numerous judgments has held that an assessee is entitled to adjudication in respect of his disputed tax liabilities by at least one independent forum outside hierarchy of the respondent department.
4. In view of the above, the instant Writ Petition is disposed of with direction to respondent No.1 to hear and decide the appeal and stay application within a period of Sixty days and till then no coercive measures shall be adopted against the petitioner by respondents Nos.3 and
4. SA/23/Isl. Petition allowed.