Pakistan, July 15 -- ISLAMABAD - The Supreme Court has ruled that tax authorities cannot carry out immediate coercive recoveries under Section 140 of the Income Tax Ordinance, 2001, without giving proper notice. The verdict emphasizes that a clear due date must be mentioned before any recovery action is taken.

A three-member bench led by Justice Munib Akhtar, with Justice Ayesha A. Malik and Justice Shahid Waheed, delivered the judgment. The court stated that the existing rule allowing instant recovery contradicts Section 140, which requires a reasonable timeframe for payment. The bench stressed that immediate recovery notices without due process are unlawful.

The decision came in response to two high-profile cases-Pakistan LNG Limited ...