ISLAMABAD: A single bench of the Islamabad High Court (IHC) adjourned the hearing of a tax reference until Tuesday (today) filed by M/s Karim Aziz Industries (Private) Limited.
The company had filed the reference, seeking restrictions for the Large Taxpayers’ Unit from recovering outstanding tax amounting to Rs 7,430,069. The bench could not hear the arguments on the case as the counsels were not present and the bench adjourned the hearing for Tuesday.
The appellant had filed the case against officers of the Large Tax Payers Unit, Islamabad. Deputy Commissioner Inland Revenue Audit and Commissioner Inland Revenue Appeals were made respondents in the case through advocate.
Through the petition, the appellant had complained against Deputy Commissioner Inland Revenue Audit that he had issued an assessment, dated, May 30, 2016.
In the order the Deputy Commissioner Inland Revenue Audit made an assessment of recoverable outstanding tax amounting to Rs 7,430,069
Through the order and preceding show cause notice the company was informed about a number of discrepancies in tax payments made by the M/S Karim Aziz Industries Private Limited.
According to details, the show cause notice issued highlighted discrepancies that the income tax returns filed for the tax years 2013 and 2014; the registered person has declared sales of Rs 1,215,536,498 and Rs 1,717,713,948 respectively.
Whereas less sales of Rs 798,167,500 and Rs 1,392,076,000 in the said tax periods have been declared in the monthly sales tax returns along with supplies to un-registered persons amounting to Rs 417,368,998 and Rs325,637,948 for the said years. With these findings the M/S Karim Aziz Industries Private Limited was issued the impugned assessment order by the Deputy Commissioner Inland Revenue Audit for recovering the tax calculated.
The counsel objected the mentioned facts revealed that company has made supplies to unregistered person, but not deposited further tax at the rate of one percent on the supplies of and violated provisions of sales tax act, 1990 and sales tax special procedure rules 2007.
The petitioner argued that the order had been issued with malafide intentions and resultantly coercive measure of recovery of sales tax were started which must be stopped.
The petitioner had prayed the court operation of the impugned order issued by the Deputy Commissioner Inland Revenue Audit may kindly be suspended till the decision of appeal pending before the commissioner appeals.
In view of the circumstances mentioned above, the court heard arguments of sides and decided that the case should be heard by the appellate tribunal inland revenue and hence decided.
