ISLAMABAD: A single bench of the Islamabad High Court (IHC) on Thursday directed the Federal Board of Revenue (FBR) to decide M/S Sihala Floor and General Mills (Private) Limited application within seven days. The company seeks court directions to stop the Large Taxpayers’ Unit from recovering outstanding tax of Rs 5,239,242.
The single bench comprising Justice Aamer Farooq heard the case and disposed it of, directing the Large Taxpayers’ Unit, Islamabad not to take any coercive action for realizing the recovery of the outstanding tax amounting to Rs 5,239,242. The court also directed the FBR to file a compliance report after passage of seven days at the IHC administration.
The appellant had challenged order issued by LTU stating that outstanding tax amounting to Rs 5,239,242 was standing recoverable on part of M/s Sihala Floor and General Mills Private Limited.
M/s Sihala Floor and General Mills Private Limited had filed the case against officers of Large Tax Payers Unit, Islamabad. Finance Division, Federal Board of Revenue, ommissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and additional commissioner Inland Revenue Audit were made respondents in the case.
Through the petition, the appellant had complained against additional commissioner Inland Revenue that he had issued an assessment, dated, June 3, 2016.
In the order the additional commissioner Inland Revenue made an assessment of recoverable outstanding tax amounting to Rs 5,239,242.
The appellant prayed the court that referred order or assessment had been issued with malafide intentions and without legal grounds. The appellant stated that it had filed stay application before the department’s concerned officer but yet it was not heard and remained undecided. Because of departmental lethargy, the company was compelled to file the petition before the IHC in order to seek lawful relief, it stated.
The petitioner had prayed the court operation of the impugned order issued by the additional commissioner Inland Revenue may kindly be suspended till the decision of appeal pending before the Large Taxpayers Unit’s commissioner appeals.
The appellant also demanded the court to provide relief to the appellant which the court may deem appropriate.
