KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from taking any coercive measures against the petitioner over impugned demand notice of Rs 879.044 million issued by the Large Taxpayer Unit-II (LTU-II) Inland Revenue (IR) Audit Range-B, Zone-I additional commissioner under Section 122 (5A) of the Income Tax Ordinance, 2001.
While hearing a constitutional petition filed by Bulls Communication (Private) Limited, a two-member bench, comprising Justice Nadeem Akhtar and Justice Muhammad Faisal Kamal also issued notices to the Ministry of Law secretary, FBR chairman, IR commissioner, deputy attorney general and others for filing their comments on July 7, 2016.
During the hearing, counsel for the petitioner submitted that petitioner is a private limited company and since 2007 is performing activities primarily relating to strategic making including strategic planning, creative ideas, event management and similar other activities and regularly filing its income tax return.
According to the petitioner, however, respondent issued notice to the petitioner, whereby an amounting of Rs 879.044 million has been demanded on account of balance income tax. The said order has been challenged by the petitioner before IR Appeals commissioner and stay application for suspension of the said order has also been filed which are pending, while the respondents have threatened to take coercive measures against the petitioner for recovery of outstanding amount. He argued that in case, interim orders are not passed on to listed applications, the appeal filed by the petitioner will become infructuous.
Petitioner pleaded the court may set aside impugned demand notice and restrain them from taking any coercive action against the petitioner.
