Law: Income Tax Act, 1922

Section: 18,18A

[Income Tax Act, 1922 (XI of 1922)].......Section 18-A-Advance tax- Penalty-Imposition of penalty for failure to pay advance tax- Sale of cement factories by 'D' to the petitioner-Prior to execution of the sale-deed but subsequent to the agreement for sale 'D' making payment of advance-tax for and on behalf of the petitioner-Whether petitioner liable to penal action for failure to pay advance tax HeId no. B. Constitution of Pakistan, 1973 -Article 199-High Court-Jurisdiction- Order passed by a fiscal authority within jurisdiction but partial, unjust and oppressive-Whether High Court empowered to grant relief to aggrieved party in writ jurisdiction -Held yes. Cases referred to :- Usmania Glass Sheet Factory Ltd., Chittagong v. Sales Tax Officer, Chittagong (PLD 1971 SC 205)=(1970) 12 Taxation 229 (S. C.) and Murrey Brewery Co, Ltd, v. Pakistan (P L D 1972, S C 279). ORDER [The judgment of the Court was delivered by FAKHRUDDIN G. EBRAHIM, J.]-This petition calls in question an order dated 5th of July, 1969 made under Section 18-A of the Income tax Act, 1922 by the Income tax Officer, Central Circle 1lIKarachi, the respondent herein, imposing a penalty of Rs. 4,84,186 on the petitioners for their alleged failure to pay advance income tax during the assessment year 1965-66 (year ending 30-9-1963). The case of the petitioner is that the advance tax was paid on their behalf by Dalmia Cement Ltd. and the order made was, therefore, on the face of it perverse and arbitrary. 2. By an agreement dated 24-7-1969, arrived at between Eruch Maneckji, the petitioner No. l herein, and Dalmia Cement Ltd., a company incorporated in the Republic of India and having its registered officer at Dalmiapura, Madras, India, the petitioner No.1 agreed to purchase and Dalmia Cement Ltd., agreed to sell their two cement factories situate at Karachi and Jhelum, the business of Dalmia Cement Ltd., in Pakistan, and all of the properties and assets in Pakistan pertaining to the business, detailed in the Schedule to the said agreement, upon terms and conditions set forth thereunder. 3. By another agreement dated 6-11-1962, between Maneckji and Dalmia Cement Ltd., the main agreement was modified…

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