The Supreme Court on Friday accepted a plea to determine if a re-assessment of a declaration about the income tax covering the last decade could be made after the expiry of four years limitation provided under the Income Tax Ordinance of 1979, which has been repealed and replaced by a new law.
The First Bench comprising Chief Justice Nazim Hussain Siddiqui, Justice Javed Iqbal and Justice Abdul Hameed Dogar passed the orders on petitions moved by Muhammad Akram Sheikh on behalf of Teejay Exclusive (Pvt) Limited.
The appeal was directed against the judgement of Sindh High Court and is based on the interpretation of Section 66-A (2) of the late Ordinance which had provided a limitation for reopening of the case within four years.
The Court agreed that the contention of the company required consideration, and put the Attorney General of Pakistan on notice for the last week of this month, and instructed the Commissioner of Income Tax, Companies Circle at Karachi to provide the Court with his comments immediately.
The company has appealed against the reopening of assessment case pertaining to years 1984-86 which caused a demand running to over Rs 7 million.