ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-5219 of 2020

______________________________________________________ Date Order with signature of Judge

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FRESH CASE:

1. For order on CMA No.22225/2020 (Urgent).

2. For order on CMA No.22226/2020 (Exemption).

3. For order on CMA No.22227/2020 (Stay).

4. For hearing of main case.

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22^nd October 2020

Mr. Ajeet Sundar, Advocate for Petitioner.

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1. Urgency granted.

2. Exemption granted, but subject to all just exceptions.

3&4. Learned counsel for the petitioner submits that petitioner is a salaried individual, who filed his return under section 114 alongwith wealth statement under section 116 of the Income Tax Ordinance, 2001 for the tax year 2019 while disclosing his total income of all sources and also given details of foreign income and assets through IRIS, which was duly accepted and no objection was raised thereon. However, according to learned counsel, respondents through impugned notice dated 08.10.2020 issued under section 182(2) read with section 116A of the Income Tax Ordinance, 2001, intend to enforce penalty for not submitting return regarding foreign income and assets under section 116A, which could not be filed by the petitioner due to inadvertence. It has been further contended by the learned counsel for petitioner that particulars of the foreign income/assets have already been disclosed by the petitioner while submitting return under section 114 and wealth statement under section 116 of the Income Tax Ordinance, 2001, therefore, petitioner has made no concealment or committed default, moreover, there is no element of mens rea or tax implications attracted for non-filing such return under section 116A, therefore, proposed imposition of penalty under the circumstances is without lawful authority. In support of his contentions, learned counsel has placed reliance on the cases of D.G. Khan Cement Company Limited and others v. Federation of Pakistan and others (2004 SCMR 456) and Schazoo Laboratories Limited v. CIT, Lahore (1976 PTD 361). Learned counsel for the petitioner in support of his contentions has referred to an order dated 15.10.2020 passed by this Court in C.P. No.D-5025/2020 [Re: Aameer Mustaaly Karachiwalla v. Deputy Commissioner Inland Revenue and others] which is available at pages 43 & 45 of the Court’s file.

Let pre-admission notice be issued to the respondents as well as D.A.G. to be served through first three modes for 04.11.2020, when instant petition may be taken up alongwith C.P. No.D-5025/2020, whereas, comments, if any, shall be filed with advance copy to the learned counsel for the petitioner. In the meanwhile, petitioner may submit response to impugned Notice by raising all such factual and legal objections, however, till next date of hearing, no final adverse order may be passed by the respondents against the petitioner pursuant to impugned Notice.

J U D G E