ISLAMABAD: The Islamabad High Court (IHC) on Friday adjourned the hearing of two tax references until June 27 filed by M/s Islamabad Electric Supply Company and Capital Development Authority (CDA) against the Federal Board of Revenue (FBR).
A single bench of the IHC comprising Justice Aamer Farooq heard the cases and adjourned following requests by counsels involved who had asked the court to grant them time. However, the court only granted them time for couple of days instead of weeks which the counsels had sought from court.
M/s Islamabad Electric Supply Company had filed the case seeking restrictions for Regional Tax Office, Islamabad about recovering outstanding tax amount of Rs551,142,009.
The appellant had challenged an RTO order, dated May 30, 2016 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under provisions of Income Tax Ordinance, 2001 for the fiscal year July 2014 to June 2015.
Federal Board of Revenue (FBR), RTO Commissioner Inland Revenue and Assistant Commissioner Inland Revenue were made respondent in the case.
The appellant had prayed the court to directed RTO not to recover the said amount and abstain from any coercive action in this regard.
The appellant submitted before the court that the impugned order was issued under mala fide intentions and had no legal standing or authority and the court may decide on relief which it deemed appropriate in this regard.
Meanwhile, the court would also hear another case filed by Capital Development Authority (CDA). The authority had challenged an RTO order seeking recovery of charged taxes from different banks in head of income tax for the year 2015.
The appellant stated that RTO had charged Rs578,000, Rs7,660,000, Rs 6,434,012 and Rs 43,000,000 from First Women Bank Limited, Allied Bank Limited, United Bank Limited and Muslim Commercial Bank.
Federal board of revenue, RTO officers including Commissioner Inland Revenue, Assistant Commissioner Inland Revenue and other were made respondent in the case.
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. The court would rehear the cases on coming Monday.
