| Citation(s) |
|---|
| 2026 SLG 63 2026 SLD 63 = 2025 PHC 911 = (2026) 133 TAX 335 |
W.P No. 1389-P of 2023
Nawab Shah CS (DB) Justice Syed Arshad Ali & Justice Dr.Khurshid Iqbal
Date of Hearing: Mr. Ishtiaq Ahmad (Senior) Advocate. M/ s Hazrat Said DAG & Ishtiaq Ahmad Advocate along with Siraj Muhammad Assistant Commissioner Inland Revenue. 05.03.2025
M/s Sarhad Cigarettes Industries (Pvt) Ltd, Swabi
VS
Federation of Pakistan through Secretary Cabinet Division, Islamabad and other
Law: Income Tax Ordinance, 2001
Section: 177, 214C, 105A, 177(6), 53
PESHAWAR HIGH COURT, PESHAWAR (JUDICIAL DEPARTMENT)
REMARKS
In light of the foregoing discussion, we are of the considered view that Clause 105A is applicable to ongoing audit proceeding concerning the income tax affairs of an assessee whose tax affairs for the previous financial year have already been audited and concluded. The Statutory bar under Clause 105A extends to such pending proceedings, as they do not constitute pas and closed transactions. It is pertinent to clarify that the insertion of Clause 105A does not impose an absolute prohibition on the conduct of consecutive audits; rather, it regulates the Commissioner`s discretion by making it conditional upon obtaining prior approval from the Board. Accordingly, in the present case as well, the commissioner retains the jurisdiction to proceed with the audit of the petitioner`s tax affairs for the relevant period, subject to securing the requisite approval of the Board within the time frame prescribed under the law.