ISLAMABAD: The Islamabad High Court (IHC) has adjourned the hearing of a tax reference filed by M/s Shaheen Foundation of Pakistan Air Force, challenging a tax recovery claim of Rs 146,140,790 issued by field office of Federal Board of Revenue (FBR).
A single bench of the IHC comprising Justice Aamer Farooq adjourned the hearing. The bench would resume the hearing of the case in November. The case hearing was adjourned until November 2 after counsels demanded the court to grant time to prepare arguments in the case.
M/s Shaheen Foundation had filed the case seeking restrictions for Large Taxpayers Unit, Islamabad about recovering outstanding tax amount of Rs 146,140,790. The appellant had also sought from court to nullify the LTU order carrying the claim about outstanding tax amount.
The appellant had challenged an LTU order, dated May 24, 2016 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under provisions of Sales tax Act, 1990 for the tax year 2013-14. Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, Deputy Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) were made respondent in the case.
The appellant had prayed the court to directed LTU 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. It also stated that due legal course was not followed by the department in issuing the order.
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 tax authority may kindly be suspended till the decision of appeal pending before the LTU.
