I. BACKGROUND

(1) We refer to TLQC in trail, blue, italic and double Line 3456 of 26.3.26 about Super Tax: FBR targets Rs 100bn Delay Surcharge and KC Views & Recommendations (2) For List of other relevant QCs, please refer to Para E.

II. EXECUTIVE SUMMARY 

The appeals were filed by ----------------- Ltd. against orders of the CIR (Appeals-I), RTO ----------, which denied stay against recovery of Super Tax demands amounting to Rs ----- million for Tax Years ------&------ under section 4C of the Income Tax Ordinance, 2001.

The taxpayer argued that recovery proceedings were premature, as substantial refundable income tax (Rs ----------- million) was already available in its favor. It was contended that under the law, such refunds should first be determined and adjusted against outstanding liabilities before initiating coercive recovery. The taxpayer also emphasized that returns filed under section 120 carry the status of assessment orders, and refund applications submitted under section 170 had not been decided within the prescribed time.

The department maintained that refunds required formal determination and that the Super Tax liability must be discharged in light of its legal validity.

Upon review, the Tribunal held that:

• Filed returns constitute valid assessment orders unless amended.
• Refund claims, if not decided within statutory timelines, cannot be ignored due to departmental inaction.
• The law mandates adjustment of excess tax against outstanding liabilities before recovery 

The Tribunal found a prima facie case in favor of the taxpayer and held that the balance of convenience also supported granting relief.

Decision:

• Recovery of demand is stayed to the extent of refundable tax for 45 days.
• Recovery of the remaining amount may proceed as per law.
• CIR (Appeals) is directed to decide the main appeals promptly.
• The Commissioner is also directed to determine pending refund applications without delay. KC views: including taxes over paid.

The stay applications were declared infructuous following disposal of the main appeals in taxpayers favour.

III. DETAILS

A. Reference & Issues

1 & 2

B. Taxpayers Learned Authorized Representative Submissions

1 to 3 

C. Learned Counsel Departmental Representative Submissions

------------------

D. Tribunal’s View on Legal Position under Section 120

1 to 8 with several sub-paras

E. Decision

In view of the foregoing discussion, recovery of the impugned demand to the extent of the refundable tax available with the department is hereby stayed for a period of forty-five (45) days the date of this order. However, in respect of the remaining demand, the department shall be at liberty to proceed with recovery in accordance with law.

The learned Commissioner (Appeals) is further directed to expeditiously decide the pending appeals of the appellant on merits, preferably within the said period. Simultaneously, the CIR concerned shall also determine the pending refund applications of the appellant without any further delay, strictly in accordance with the provisions of the Ordinance.

F. MA(Stay) No.----------------------- (Τ.Υ ---- & ----)

Since the present appeal has been adjudicated and the impugned order refusing stay has already been set aside with consequential directions, the stay application filed by the appellant becomes infructuous and requires no separate adjudication.

IV. LIST OF FURTHER TLQCs ABOUT SECTION 4B/4C 

(a) 3452 of 17.3.26 about Section 4C: FTO directs FBR to adjust Refunds before Recovery u/s 

(b) 3444 of 25.2.26 about Super Tax u/s 4C: Misapplication & Premature Recovery leading to Severe Hardship - LTBA letter

(c) 3443 of 24.2.26 about Super Tax u/s 4C: Irregularities in Enforcement - PTBA letter 

(d) 3439 of 19.2.26 about Super Tax u/s 4B/4C: FCCP Super Shock and Urgent Practical Solutions required

(e) 3435 of 10.2.26 about Super tax u/s 4C: Adjust Demand from Refundable - Tribunal 

(f) 3434 of 4.2.26 about Super tax u/s 4B/4C: Demand challenged on non-rectified ground; Recovery stayed by SHC 

(g) 3431 of 1.2.26 about FCCP Short Order: Sections 4B/4C Super Tax almost intra vires Constitution details

(h) 3433 of 2.2.26 about 4B & 4C Recovery measures, its Economic impact and PTBA recommendations

(i) 3432 of 2.2.26 about Section 4C: FCCP Order's Mr Shabbar Zaidi Comments

(j) 3429 of 29.1.26 about PSX Fallen as KC predicted & may fall more, as 4B & 4C FCCP order 

(k) Over 55 other commentaries on various aspects of Super Tax

V. FURTHER DETAILS & SERVICES

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants)