The Commissioner Of Income Tax, Companies Zone, Faisalabad And Other
This petition for leave to appeal was filed by the Commissioner of Income Tax against a judgment of the Lahore High Court, which had declared in a constitutional petition that the respondent taxpayers were not liable to pay additional tax or penalty for the period during which an interim stay order of the court was in operation. Before the Supreme Court of Pakistan, the petitioner's counsel conceded that penalty could not be recovered for the duration of the stay order, but sought clarification regarding liability for periods when no stay was in effect and compliance with specific terms of the stay order. The Supreme Court dismissed the petition as not pressed, subject to the clarified conditions agreed upon by both parties.
- Whether additional tax or penalty can be recovered for the period during which an interim stay order of the court was in operation?
- Whether additional tax or penalty remains payable for periods during which no stay order of the court was in operation?
- Section 80-C, Income Tax Ordinance 1979
- Section 80-CC, Income Tax Ordinance 1979
- Section 80-E, Income Tax Ordinance 1979
JUDGMENT MUNIR A. SHEIKH, J.- This petition is directed against the judgment dated 9.12.1999 of the Lahore High Court, Lahore through which on acceptance of the Constitutional Petition it was declared that the respondents were not liable to pay additional tax during which stay order of the Court was in operation.
2. The respondents challenged the act of the petitioners of the recovery of the additional tax/penalty from them of the period during which stay order of the Court was in operation. The case of the respondents was that the period during which stay of the Court was in operation the Income Tax Authorities could not recover the penalty/additional tax from them. This found favour with the learned Judge of the High Court and declaration was made to that effect.
3. Learned counsel for the petitioner when questioned as to how the petitioner could feel aggrieved against said judgment for as admitted by him, penalty could b? Recovered for the period the stay order was in operation, stated that he will be satisfied if clarifications are made to the following effect:--
(a) The additional tax/penalty would be payable for the entire period during which stay order was not in operation and the same is exempted only for that period during which stay order was in operation.
(b) That as per terms of stay order the respondents are liable to pay two percent interest above bank rate on amount of the tax due under Sections 80-C, 80-CC and 80-E of the Income Tax Ordinance, 1979.
4. Leamed counsel for the respondents stated that he has no objection if this clarification is made.
According to him the legal affect of the impugned order is the same.
5. This petition is dismissed as not pressed subject to clarifications noted above.