ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-6677 of 2020

___________________________________________________________________                                        Date                                      Order with signature of Judge 

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FRESH CASE:

1.     For order on CMA No.28483/2020 (Urgent).

2.     For order on CMA No.28484/2020 (Exemption).

3.     For order on CMA No.28485/2020 (Stay).

4.     For hearing of main case.

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24th December 2020

Mr. Arshad Hussain Shehzad, Advocate for Petitioner.

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1.         Urgency granted.

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

3&4.     Through instant petition, the petitioner has impugned a letter dated 30.06.2020 issued by Secretary (IR-Operations), F.B.R. granting general condonation of limitation under Section 214A of Income Tax Ordinance, 2001, Section 74 of the Sales Tax Act, 1990 and Section 43 of Federal Excise Act, 2005, amid lockdown and rise in Corona Virus cases, on the ground that under the garb of the aforesaid extension, the respondents have attempted to circumvent judgment dated 13.03.2018 passed by the Honourable Supreme Court of Pakistan in CPLA Nos.2370-L of 2017 and others (Re: Commissioner Inland Revenue Sialkot and others v. M/s. Allah Din Steel & Rolling Mills and others), wherein, the Honourable Supreme Court has been pleased to hold that the audit proceedings for the tax year 2014 shall be completed by 31.12.2017. According to learned counsel, though FBR has authority to extend period of limitation under section 214A of the Income Tax Ordinance, 2001, however, it is subject to certain pre-conditions and requirements of law, which have not been followed while issuing the impugned letter. Per learned counsel, the period of limitation cannot be extended in such a causal manner a substantial right accrues in favour of a taxpayer in case of expiry of period of limitation as held by the Honourable Supreme Court in the aforesaid judgment. According to the learned counsel, similar petition is also pending before the Lahore High Court in W.P. No.36500/2020 (Re: Muhammad Ashraf v. Deputy Commissioner Inland Revenue, etc.), wherein, notices have been issued to the respondents, who have been restrained from passing any final adverse order till next date of hearing. In support of his contentions, learned counsel has placed copy of order dated 19.08.2020 passed by Lahore High Court in the aforesaid Writ Petition. According to learned counsel, C.P. No.D-6373/2020 (Re: Trustees of the Port of Karachi vs. Pakistan through Secretary Ministry of Finance, Government of Pakistan, Islamabad and others) is also pending before this Court, wherein, by order dated 15.12.2020, respondents have been restrained from passing any final adverse order pursuant to similar notice issued to the petitioner under section 25 of the Sales Tax Act, 1990. In support of his contentions, learned counsel has placed on record a copy of order dated 18.12.2020 passed by this Court in C.P. No.D-6455/2020, wherein, notices have been issued to the respondents, who have been restrained from passing any final adverse order against the petitioner pursuant to the impugned notice.

Let pre-admission notice be issued to the respondents as well as D.A.G, to be served through first three modes, for 14.01.2021, when instant petition may be taken up alongwith aforesaid C.P. No.6455/2020, whereas, comments, if any, shall be filed with advance copy to the learned counsel for petitioner. However, till next date of hearing, interim order already passed by this Court in the aforesaid petition shall apply mutatis mutandis in the instant petition as well.

 

      J U D G E

 

 

J U D G E