Law: Income Tax Ordinance, 2001

Section: 174,173(3),177

Income Tax Ordinance (XLIX of 2001)- Ss. 174(3) & proviso- Records, information collection and audit- Maintenance of record by taxpayer- Statutorily required time-period for maintenance of such record- Maintenance of record after lapse of statutorily required time for such maintenance- Interpretation of S.I74 of Income Tax Ordinance, 2001- Scope- Petitioner taxpayer impugned notice of Department whereby taxpayer was required to produce record / documents beyond the statutorily prescribed time period for maintenance of such record under S. 174(3) of Income Tax Ordinance, 2001- Validity- Proviso to S.174(3) of Income Tax Ordinance, 2001 provided clear mandate for taxpayer to maintain record till final decision of any proceedings and not beyond such date and in the present case, petitioner maintained such records till final decision of proceedings against taxpayer, however, subsequent notice for production of record was issued by Department after considerable lapse of time from date of such decision(s)- Section 174 of Income Tax Ordinance, 2001 merely related to maintaining of record and documents and did not prohibit powers conferred by other provisions of said Ordinance such as audit etc.- Section 174 of Income Tax Ordinance, 2001 was an independent section and placed obligation on taxpayer to maintain record for certain period of time and placed corresponding duty on officers of Department to initiate their proceedings within time prescribed therein so that may be able to procure accounts and documents which were necessarily required for any proceedings- Taxpayer could not be burdened with a liability which was not caste by law itself and could not be required to produce record beyond statutory limit- Impugned notice was set aside, with observation that audit proceedings may continue yet Department could not compel the taxpayer to maintain record beyond period of five years as required by S. 174(3) of Income Tax Ordinance, 2001- Constitutional petition was allowed, accordingly. Maple Leaf Cement Factory Ltd. v. Federal Board of Revenue and others 2016 PTD 2074 rel. ORDER SHAHID KARIM, JUSTICE:---.--- This order shall decide the instant petition as well as…

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