(a) Constitution of Pakistan (1973)---

----Art.199(4)---Constitutional jurisdiction of High Court---Grant of stay-- Essentials---Stay shall not be granted by High Court under its Constitutional jurisdiction unless the prescribed law officer had been given notice of the application and an opportunity of being heard.

(b) Income Tax Ordinance (XXXIX of 1979)---

----Ss.64 & 160(b)---Constitution of Pakistan (1973), Art.199---Stay, grant of-- Limitation for assessment and other proceedings---Computation---Period during which any assessment or other proceedings under the Income Tax Ordinance, 1979, are stayed by any Court shall be excluded while computing the period of limitation.

(c) Income Tax Ordinance (XXXIX of 1979)---

----Ss.62 & 59---Constitution of Pakistan (1973), Art.199---Issuance of notice under S.62, Income Tax Ordinance, 1979---Grant of stay by High Court under Art.199 of the Constitution---Assessing Officer instead of disposing of the assessee's case under Self-Assessment Scheme had issued a notice under S.62, Income Tax Ordinance, 1979---Such notice, prima facie being prejudicial to the assessee qualified case to be fit one to stay further proceedings in the matter till disposal of petition under Art.199 of the Constitution of Pakistan (1973).

Farogh Nasim for Petitioner.

Nasrullah Awan for Respondents Nos. l and 2.

M.G. Hasan for Respondent No.3

Date of hearing: 4th July, 1993.

ORDER

G.H. MALIK, J.---The petitioner has by this petition, challenged the notice issued to the petitioner by respondent No.4 under paragraph 4(ii) of the Self-Assessment Scheme 1992-93, on the various grounds mentioned in the petition. The petition has been admitted for regular hearing. Mr. Farogh Nasim submits that in similar petitions which have been admitted to regular hearing by this Court, the proceedings in the cases have been stayed pending hearing and the disposal of the petitions.

Mr. M.G. Hasan, learned counsel for respondent No.4 opposes the i grant of the application for stay on various grounds. He submits that stay cannot be granted in view of the provisions of Article 199(4) of the Constitution. The argument is without merit. Article 199(4) provides that stay shall not be granted unless the prescribed Law Officer has been given notice of the application and an opportunity of being heard Such notice and opportunity have been given in this case. The next contention made by Mr. M.G. Hasan i' that if stay were to be granted the period of limitation provided for by section 64 of the Income Tax Ordinance would be reduced and that the assessee may escape having to pay income tax. This argument is equally without merit, because, as pointed out by Mr. Farogh Nasim, Section 160(b) of the Income Tax Ordinance provides that the period during which any assessment or other proceedings under the Ordinance are stayed by any Court shall be excluded while computing the period of limitation.

It is then contended by Mr. M.G. Hasan that if stay is granted, the petitioner will lose interest in the petition, and obtain adjournments. The argument is purely speculative and has no basis. Mr. M.G. Hasan further contends that balance of convenience is not in favour of granting stay because if the proceedings are taken and finalised against the petitioner, as provided by Income Tax Ordinance he can have recourse to the remedies provided by the Ordinance. In our opinion, the contention is not correct and the balance of convenience is in favour of granting of stay. Mr. M.G. Hasan contends that no order prejudicial to the petitioner has yet been passed, but the fact that the respondent No.4, instead of disposing of the petitioner's case under Self Assessment Scheme has issued a notice under section 62 of the Ordinance is prima facie prejudicial to the petitioner.

In view of the above, we are satisfied, in the circumstances of the case, that this is a fit case to stay further proceedings in the matter. The respondent No.4 is therefore, directed not to proceed any further in the matter till the hearing and disposal of this petition. The petition to be fixed for hearing within three months.

M.B.A./B-251/LStay granted.