MUHAMMAD UMAR VS CENTRAL BOARD OF REVENUE, 2006 PTD-LAHORE-HIGH-COURT-LAHORE 143 (2005)

Income Tax Ordinance (XLIX of 2001)---

----Ss. 120 & 177---Constitution of Pakistan (1973), Art.199---Constitutional Petition---Assessment---Re-opening the matter for auditing---Matter had been re-opened for auditing under S.177 of Income Tax Ordinance, 2001---Main ground taken before High Court was that pre-requisite requirement as laid down in S.177 of Income Tax Ordinance, 2001 for purpose of re-auditing, had not been fulfilled where returns had already been accepted under provisions of S.120 of Income Tax Ordinance, 2001; that S.177 of Income Tax Ordinance, 2001 was arbitrary and extended excessive delegation of powers with respect to exercise of powers at the level of local formation and that need was for restructuring that---Said questions had been dealt with exhaustively in cases reported as 2005 PTD 152 and 2005 PTD 1974 and principles dealt with in said two cases would be applicable in the present cases as well---Matters were referred to concerned Revenue Authority for purposes of giving effect to principles laid down in the mentioned reported judgments.

Ch. Muhammad Hussain and others v. Commissioner of Income Tax 2005 PTD 152 and Munir Bhimjee and others v. Islamic Republic of Pakistan and 2 others 2005 PTD 1974 fol.

Muhammad Naeem Shah for Petitioner.

Shahid Jamil Khan for Income Tax Department.

ORDER

ALI NAWAZ CHOWHAN, J.---This order shall dispose of the following Writ Petitions Nos.9803 of 2004, 9806 of 2004, 9798 of 2004 and 9812 of 2004 on legal grounds.

The matter relates to Self-Assessment Scheme envisaged under the new Income Tax Law and in these cases the matter has been re-opened for auditing under section 177 of the Income Tax Ordinance, 2001. The main ground taken before this Court in these cases was that the pre-requisite requirements as laid in section 177 for purposes of pre-auditing have not been fulfilled in cases where the returns have already been accepted under the provisions of section 120 of the Income Tax Ordinance, 2001.

The next point was that section 177 was too open ended and was arbitrary and extends excessive delegation of powers with respect to the exercise of powers at the level of the local formation and, therefore, there is need for structuring this.

In the following cases: (1) Ch. Muhammad Hussain and others v. Commissioner of Income Tax (2005 PTD 152) and (2) Munir Bhimjee and others v. Islamic Republic of Pakistan and 2 others (2005 PTD 1974), these questions have been dealt with exhaustively and decision taken and thus the same principle would be applicable in these cases as well and the matters are, therefore, referred to the concerned Revenue Authority for proposes of giving effect to the principle laid in those judgments.

With these observations, these Writ Petitions stand disposed of.

H.B.T./M-1323/L??????????????????????????????????????????????????????? Order accordingly.