| Citation(s) |
|---|
| 2026 SLD 3215 |
Income Tax Reference No. 51 of 2016 Income Tax Reference No. 52 of 2016
Presented By: (Mohsin Akhtar Kayani) Judge (Sardar Ejaz Ishaq Khan) Judge
Applicant by: Mr. Manzoor Hussain, Advocate
Respondent by: Mr. Amraiz Khan, Advocate Date of Hearing: 20.06.2022
Commissioner of Inland Revenue Zone-III, Islamabad
VERSUS
M/s Pearl Security Pvt. Limited Commissioner of Inland Revenue Zone-III, Islamabad Versus M/s Pearl Security Pvt. Limited
Law: Income Tax Ordinance, 2001
Section: 170(4), 170(5)(b, 127(5), 133
Summary
The Islamabad High Court decided whether the 60-day period prescribed under Section 170(4) of the Income Tax Ordinance, 2001 for passing a tax refund order is mandatory or merely directory.
The taxpayer, Pearl Security (Pvt.) Ltd., filed refund applications on 28.07.2011, but the Commissioner Inland Revenue passed the refund order after more than one year, beyond the statutory 60-day limit. The Commissioner (Appeals) and Appellate Tribunal held that the delayed order was invalid due to limitation.
The High Court reversed this view. It held that Section 170(5)(b) specifically gives a taxpayer the right to appeal when the Commissioner fails to pass a refund order within 60 days. Therefore, the Legislature did not intend that a refund should automatically become admissible merely because no order was passed within the prescribed period.