Law: Income Tax Ordinance, 2001

Section: 147,147(1),205

Income Tax Ordinance (XLIX of 2001)--- ----Ss. 147 & 205---Advance tax paid in quarterly installments---Tax Officer, powers of---Scope---Notices issued to petitioner-company seeking proof of basis for estimation of advance tax paid in installments---Legality---Perusal of S.147 of the Income Tax Ordinance, 2001 led to the conclusion that once estimate (of advance tax) was filed by the tax payer whether right or wrong, there was no provision which provided any authority to the Taxation Officer to discard such estimate and ask the taxpayer to continue paying the tax in accordance with the provision of subsection (1) of S. 147 read with subsection (4) ---No provision in the Income Tax Ordinance, 2001 empowered the tax authorities to question the correctness of the estimates filed by the tax payer- and only recourse was when the tax returns were filed and in the same it was found that the estimate was incorrect then additional surcharge under S.205 of the Ordinance could be imposed by the tax department ---Constitutional petition was allowed accordingly and impugned notices issued to the petitioner-company were set-aside. Messrs Pak Telecom Employees Trust (PTET) v. Federation of Pakistan and others W.P. No. 2447 of 2016; Karachi Port Trust Karachi v. Commissioner Inland Revenue, Karachi 2011 PTD 1996 and Commissioner of Income Tax and another v. Dawood Hercules Chemicals Ltd. 2007 SCMR 227 = 2006 PTD 2498 ref. THIS JUDGMENT DELIVERED BY: AAMER FAROOQ, JUSTICE:---.--- This judgment shall decide the instant petition as well as Writ Petition No. 4803/2016 as common questions of law and facts are involved. 2. The petitioners are taxpayers who under section 147 of the Income Tax Ordinance, 2001, (the Ordinance) are liable to pay advance tax. The petitioners are aggrieved of notices issued by the respondent department for providing proof of payment of the installments and basis for assessment of tax liability. 3. Learned counsel for the petitioner, inter alia, contended that the issue raised in the instant petition is the same as was in Writ Petition No. 2447/2016, titled "Messrs Pak Telecom Employees Trust (PTET) v. Federation of Pakistan and others". In light of…

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