Penalty and additional tax

When the main levy failed the imposition of penalty or additional tax also failed.

Levy of additional tax rejecting the stance of the company that delay was due to internal controls and administrative procedures

Assessee contended that there was no mala fide intention on the part of the company causing delay in deposit in government treasury of tax deducted, as the company voluntarily deposited the tax so deducted, with the government exchequer soon after completion of administrative procedures

Validity

Additional tax could not be equated with penalty

Penalty and additional tax are distinct ones

Penalty was meant to penalize the assessee for not doing an act within stipulated timeframe while additional tax was levied because assessee used the government money and took its benefit or the government was deprived of its utility/profits

Tax was admittedly due and not paid on due date, it amounted to utilization of public exchequer and compulsion of payment of additional tax was quite in accordance with equity and principles of natural justice

Assessee could not be absolved from payment of additional tax qua late payment of admitted liability of tax on the plea of not being wilful

Appeal was dismissed by Appellate Tribunal.

Grievance of petitioner was that provisional recognition of his post graduate qualification, could not be withdrawn by the authorities

Validity

Only those post graduate medical qualification could be recognized as additional medical qualification, which was granted by those medical institutions in or outside Pakistan which were included in Third Sched. to Pakistan Medical and Dental Council Ordinance, 1962

Although Federal Government had power to amend Third Sched. but so long a postgraduate qualification was not included in the Third Sched., Medical and Dental Council had no power to recognize the same as additional medical qualification

Such was in contrast to the powers conferred on Medical and Dental Council by Ss.15 and 19 of Pakistan Medical and Dental Council Ordinance, 1962

In absence of entry of said qualification in third Sched. of the Ordinance, the petitioner's present qualification could not be recognized as additional qualification

As the Council had no power to recognize the petitioner's qualification as additional qualification, the principle of locus poenitentiae was not attracted

Petition was dismissed in circumstances.