Law: Income Tax Act, 1922

Section: 45A

Law: Income Tax Act, 1922

Section: 45A

Law: Constitution of Pakistan, 1962

Section: 98

Income-tax Act, 1922 -- Section 45A (inserted by Finance Act, 1963)--- Additional tax for delayed payments -- Provision of Section 45A introduced as from 01-07-1963 -- Whether retrospective in nature -- Held no -- Whether applicable prospectively to the demands created after the provision was enacted -- Held yes -- Additional tax -- Provision of Section 45-A to be applied prospectively to demands created after date of its enactment -- No choice left for Department to substitute a date of its own liking -- JUDGMENT SHAFI-UR-REHMAN, J.---This judgment disposes of the following four petitions filed under Article 98 of the late Constitution of 1962 challenging the levy and demand of additional tax under section 45-A of the Income-tax Act for the period 1-7-1964 to 30-6-1964. Such additional tax has been levied on arrears of income-tax due from the petitioners for the assessment years 1949 to 1963:- (1) W. P. No. 1340/64, Mian Ahmad of Premier Cloth Mills Ltd. v. Income-tax Officer and another involving a total demand of Rs. 20,953. (2) W. P. No. 1341/64 Mian Zubair Ahmad v. Income-tax Officer and another involving a sum of Rs. 21,951. (3) W. P. No. 1342/64, Mian Rashid Ahmad v. Income-tax Officer and another involving a sum of Rs. 24,665. (4) W. P. No. 1343/64, Mian Sheikh Allah Bakhsh v. Income-tax Officer and another involving a sum of Rs.18,273. 2. The circumstances in which these petitions were filed in the year 1964 were that by the Finance Act of 1963 (Act No. XVI of 1963) section 45-A, an entirely new provision, for levying additional tax was enacted. It is reproduced in extenso hereunder:- "45-A. Additional tax for delayed payments.--Where any assessee fails to pay the tax due from him, he shall, without prejudice to his liability under any other provisions of the law, be liable to pay an additional amount of tax equal to six per cent. per annum of the amount of tax due from him from the date on or before which it was originally made payable (hereafter referred to as the said date) to the date of its payment:- Provided that where at the request of the assessee, the tax is allowed to be paid in installments, such additional amount of tax shall be payable in…

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