News Paper: Business Recorder
ISLAMABAD (July 23 2010): Sindh High Court has issued notice to the Regional Tax Office, Karachi to explain the rationale behind initiating income tax proceedings in a time barred case under the repealed Income Tax Ordinance 1979. Sources told Business Recorder here on Thursday that Syed Naved Andrabi Advocate Supreme Court has filed a petition in the SHC in this regard.
The case mainly related to the issue that how the income tax department can initiate proceedings in time barred cases under the repealed Income Tax Ordinance 1979. Details of the case revealed that the Regional Tax Office, Karachi has initiated proceedings u/s 66A of the repealed Income Tax Ordinance, 1979 on the ground that the Supreme Court in its judgement on the issue of application of section 122 (5A) of the Income Tax Ordinance, 2001 has held that the orders passed before June 30, 2002 are to be dealt under the Repealed Ordinance as if the Ordinance has not come into force (CIT Vs. Eli Lilly Pakistan Limited & others).
One such notice issued u/s 66A of the repealed Ordinance has been challenged in Constitutional Petition before the Sindh High Court at Karachi. The petition was listed for hearing on July 20, 2010 before the division bench of Acting Chief Justice, Justice Musheer Alam. The learned Division Bench, after hearing the arguments was pleased to issue notice to the Respondents. The issues raised in the petition are that the judgement of the Supreme Court has decided the appeals on the legal issues and have held that the assessments passed before June 30, 2002 are to be perused and finalised under the repealed ordinance; however, nowhere has it been directed that the proceedings be initiated specially when the limitation under the repealed ordinance has lapsed/expired.
It has also been argued that the Additional Commissioner Inland revenue has no jurisdiction to initiate the proceedings under the Repealed Ordinance has there exists no such authority. It has also been argued that the provisions of section 66 of the repealed ordinance are also not applicable on the proceedings that may be initiated u/s 66A of the Ordinance as the limitation given there is independent of what has been suggested u/s 66 of the repealed Income Tax Ordinance.
It was argued that the proceedings under the repealed ordinance cannot be re-opened especially when the assessments are passed and closed transactions on the issue of limitation; especially when no such direction was specifically given by the Supreme Court of Pakistan, sources added.
-www.brecorder.com
The case mainly related to the issue that how the income tax department can initiate proceedings in time barred cases under the repealed Income Tax Ordinance 1979. Details of the case revealed that the Regional Tax Office, Karachi has initiated proceedings u/s 66A of the repealed Income Tax Ordinance, 1979 on the ground that the Supreme Court in its judgement on the issue of application of section 122 (5A) of the Income Tax Ordinance, 2001 has held that the orders passed before June 30, 2002 are to be dealt under the Repealed Ordinance as if the Ordinance has not come into force (CIT Vs. Eli Lilly Pakistan Limited & others).
One such notice issued u/s 66A of the repealed Ordinance has been challenged in Constitutional Petition before the Sindh High Court at Karachi. The petition was listed for hearing on July 20, 2010 before the division bench of Acting Chief Justice, Justice Musheer Alam. The learned Division Bench, after hearing the arguments was pleased to issue notice to the Respondents. The issues raised in the petition are that the judgement of the Supreme Court has decided the appeals on the legal issues and have held that the assessments passed before June 30, 2002 are to be perused and finalised under the repealed ordinance; however, nowhere has it been directed that the proceedings be initiated specially when the limitation under the repealed ordinance has lapsed/expired.
It has also been argued that the Additional Commissioner Inland revenue has no jurisdiction to initiate the proceedings under the Repealed Ordinance has there exists no such authority. It has also been argued that the provisions of section 66 of the repealed ordinance are also not applicable on the proceedings that may be initiated u/s 66A of the Ordinance as the limitation given there is independent of what has been suggested u/s 66 of the repealed Income Tax Ordinance.
It was argued that the proceedings under the repealed ordinance cannot be re-opened especially when the assessments are passed and closed transactions on the issue of limitation; especially when no such direction was specifically given by the Supreme Court of Pakistan, sources added.
-www.brecorder.com
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