Send the following on WhatsApp
Continue to ChatConst. P. 5314/2020 Bilal Ali Lakhani V/S Fed. of Pakistan and Others Sindh High Court, Karachi SHC Citation: SHC-149115 Tag: A Divisional Bench of this Court comprising of Mr. Justice Aqeel Ahmed Abbasi and Justice Mrs. Rashida Asad has pronounced the judgment on 22nd December 2020 in the case of Aameer Mustaaly Karachiwalla v. Deputy Commissioner Inland Revenue and others (alongwith other connected Petitions), whereby, the petitioners have challenged the issuance of notice under Section 182(2) read with Section 116A of the Income Tax Ordinance, 2001, enforcing penalty for not submitting returns regarding Foreign Income and Assets Statement. The plea of the petitioners was that the petitioners have already declared Foreign Income and Assets from all the sources in their wealth statement filed under Section 116 alongwith their return of total income for the Tax Year 2019 under Section 114 of the Income Tax Ordinance, 2001, within the prescribed time limit, by availing e-filing facility via IRIS, whereas, such return was duly accepted, as no notice was issued to the petitioners by the Department in terms of Section 120(3) of the Income Tax Ordinance, 2001, requiring the petitioners to furnish any short documents in this regard. It was further argued on behalf of the petitioners that omission in filing returns was neither deliberate nor it has any financial implications or involvement of payment of any taxes, etc. therefore, the penalty provisions of Section 182 of the Income Tax Ordinance, 2001, could not be invoked. Learned Divisional Bench of this Court by examining all the relevant provisions of law and case-laws has been pleased to allow the aforesaid Petitions in the following terms: - ???13. In view of the foregoing discussions, we are of considered opinion that in the absence of prescribed format notified under Section 116A of the Income Tax Ordinance 2001, whereas, nothing has been concealed by petitioners, nor there is any consequence either on income or tax liability of petitioners for non-filing of Foreign Income Assets Statement along with return of income for Tax Year 2019, the penal provisions of Section 182 of the Income Tax Ordinance, 2001, could not be invoked. Particularly, when respondents have failed to establish willful default or mens rea on the part of petitioners. We derive analogical guidance from ???the Non delegation Doctrine??? which is well established in jurisprudence and is attracted in the instant circumstances. Issuance of notices under section 182(2) cannot be validated, therefore, impugned notices having no support of lawful authority are hereby declared as illegal, hence, of no legal consequence. For these reasons, the petitions were allowed vide short order announced on 22.12.2020. Bench: Hon'ble Mr. Justice Aqeel Ahmed Abbasi(Author), Hon'ble Justice Mrs. Rashida Asad(Author) Source: http://shc.gov.pk/caselaw/ Order http://shc.gov.pk/caselaw/hc-link.php?link=43.245.130.98:8056/caselaw/&hash=MTQ5MTE1Y2Ztcy1kYzgz