RIAZ BOTTLERS (PVT.) LTD. through Tax Manager VS COMMISSIONER OF INCOME TAX, 2008 PTD-LAHORE-HIGH-COURT-LAHORE 1781 (2008)

Income Tax Ordinance (XLIX of 2001)---

----S.127---Power of Commissioner (Appeals) to grant interim relief---Scope---Commissioner (Appeals) does have a clear and unequivocal inherent power to grant interim relief depending upon the circumstances of each case.

Umer Farooq Syed v. Commissioner of Wealth Tax and others 1991 PTD 8727 fol.

Mst. Inayat Begum v. CIT and others 1985 PTD 375 ref.

Ch. Anwaar-ul-Haq for Petitioner.

Shahid Jamil Khan for Respondents.

ORDER

KHAWAJA FAROOQ SAEED, J.---Contends that his appeal is pending before First Appellate Authority since 31st July, 2008. The Appellate Authority was requested to grant stay of tax also which has been declined under the garb of the claim that no such jurisdiction is available with him. Contends that the Appellate Authorities, during pendency of the main case also enjoy the inherent jurisdiction to allow a stay of the demand of tax created on the basis of the order impugned before the said Authority.

2. The reliance of the learned counsel for the petitioner is on the case of Mst. Inayat Begum v. CIT and others 1985 PTD 375 (HC Lahore).

3. Learned Legal Advisor states that since there is no order before this Court by any authority invocation of writ jurisdiction is not permissible. He, however, contends that he shall have no objection, if a direction is issued to the said Appellate Authority for disposal of the appeal at an early date. However, this Court should not exercise its extraordinary jurisdiction and should not grant the stay of demand. He also states that there are apparently no coercive measures against the petitioner, hence even otherwise any such direction shall be unnecessary.

4. This Court does not have any doubt about the fact that the Commissioner Appeals does have a clear and unequivocal inherent power to grant interim relief depending upon the circumstances, of each case. This however, would not need much to hold as there is already direct case-law on the issue. Reliance can be placed upon Umer Farooq Syed v. Commissioner of Wealth Tax and others 1991 PTD 872 which holds as follows:

"Although there is no specific provision under the Wealth Tax Act enabling the Appellate Commissioner to stay the operation of the order impugned before him but it is now well-settled that the Appellate Authority has inherent power to grant interim relief."

5. Following the same this Court directs the Commissioner Appeals to decide the application of the petitioner of stay on merits which is statedly pending before him. He is also directed to decide the main appeal within four weeks from this order.

6. The writ petition stands accordingly, disposed of.

M.B.A./R-39/LOrder accordingly.