New Tax Penalties Cannot Be Applied To Old Cases: Supreme Court
The Supreme Court of Pakistan has ruled that penalties imposed under the Income Tax Ordinance 2001 cannot be applied retrospectively … Read More The post New Tax Penalties Cannot Be Applied To Old Cases: Supreme Court appeared first on ProPakistani .
The Supreme Court of Pakistan has ruled that penalties imposed under the Income Tax Ordinance 2001 cannot be applied retrospectively to tax assessments completed under the repealed Income Tax Ordinance 1979. The five-judge bench, led by Justice Shahid Waheed, rejected the argument that the penalties under the 2001 ordinance could be imposed on assessments governed by the 1979 law.
The court emphasized that in the absence of clear legislative language giving a tax provision retrospective effect, provisions of the 2001 ordinance could not be applied to assessments governed by the 1979 law. This ruling effectively settles a legal conflict between two earlier Supreme Court rulings and establishes that later tax penalties cannot be imposed on assessments governed by an earlier tax law unless the legislation expressly provides for retrospective application.
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