Tax Reference

2026 PTD 938 PESHAWAR-HIGH-COURT Judicial Precedent

S. 133Tax referenceReference jurisdiction of the High CourtDuty of High Court to answer question of lawScope“Question of law”, meaning of

Question of law means a question as to what the law is on a particular point, which provision of law is applicable to a particular factual situation and what the true rule of law is on a certain matter

In reference jurisdiction, High Court cannot either strike down a provision of law or declare it ultra vires of the Constitution

While exercising reference jurisdiction, the High Court confines itself to the questions framed/proposed and gives an opinion in the perspective of the facts, and entering upon the constitutionality of a particular provision is not required in such matters

High Court, in exercise of its reference jurisdiction, does not reappraise evidence or substitute factual findings of the Tribunal unless a clear question of law arises

Concurrent findings of lower forums cannot be interfered with in reference jurisdiction unless demonstrated to be perverse.

2020 PTD 203 KARACHI-HIGH-COURT-SINDH Judicial Precedent

Ss. 8, 10, 36, 46 & 47Income Tax Ordinance (XLIX of 2001), Ss. 131 & 132Sales Tax Refund Rules, 2002, R. 8Tax referencePecuniary jurisdiction of Assistant CollectorSales Tax Automated Refund Repository (STARR) SystemBlacklisted, deregistered or suspended sellersFlying invoices

Taxpayer sought tax refund but same was denied due to invoices received of blacklisted, deregistered or suspended companies

Authorities were aggrieved of orders passed by Appellate Tribunal Inland Revenue suspending order-in-appeal against taxpayer

Validity

Order-in-original was passed by Assistant Collector and amount of refund claimed was Rs.86,152,520/- and same did not fall within pecuniary jurisdiction of Assistant Collector

Order-in-original was passed without jurisdiction as same was beyond monetary competence of passing such order of Assistant Collector

Unless status of a registered person was declared as blacklisted, deregistered or suspended in Sales Tax Automated Refund Repository System it could not be said that invoices issued by such registered person were fake and flying invoices

No invoice issued by registered person could be declared as invalid or fake retrospectively

Invoices were validly issued as per law as when invoice was issued to taxpayer by seller, nothing adverse was showing against him and department did not mention him as blacklisted, deregistered or suspended, therefore such invoices were validly issued as per law

If any derogatory action was done by seller, department was justified to take action against seller

Action taken against those purchasers who purchased goods from seller during period when he was enjoying status of 'registered person' was unfair

Refund claims preferred by taxpayer in respect of invoices issued by seller during period when no adverse action was taken against him were valid for preferring such refund claims and such refund claims were proper and legal

High Court declined to interfere in orders passed by Appellate Tribunal Inland Revenue

Reference application was dismissed in circumstances.

1981 SCMR 536 SUPREME-COURT Judicial Precedent

Art. 185(3) read with Income-tax Act (XI of 1922), S. 66-A-Tax Reference-Fitness Certificate-Supreme Court dismissing petition filed against order of High Court refusing to grant fitness certificates in Tax Reference-Petitioner thereafter filing another application seeking leave to appeal against order and judgment of High Court in a criminal miscellaneous application read with its judgment and order passed in Tax Reference-Held: Mere adding of a prayer for leave to appeal in such manner would neither extend period of limitation for main petition nor would affect judgment or order passed therein.