Messrs NASIR FLOUR MILLS (PVT.) LTD, KARACHI vs THE FEDERATION OF PAKISTAN through Chairman, Central Board of Revenue, ISLAMABAD and 2 others

This matter came before the High Court of Sindh as a petition seeking interim relief against tax recovery demands. The core legal question was whether the respondent department should be restrained from enforcing a tax demand under Section 80-D and recovering the amount via a notice issued under Section 92 of the Income Tax Ordinance 1979, in light of a precedent set by another Division Bench in a similar case. Relying on the cited precedent, the High Court granted the interim stay, restraining the department from enforcing the demand under Section 80-D. Furthermore, the Court directed that if the amount had not yet been recovered from the third respondent pursuant to the notice under Section 92, no further recovery actions should be taken. The key principle laid down is that consistency in judicial orders warrants the grant of interim stay in tax recovery matters where a Division Bench has previously granted similar relief in an identical case.