KARACHI: M/s Gohar –e-Nayab and M/s Gohar Construction Company have approached the Sindh High Court (SHC), challenging the impugned notices on alleged selection of petitioners for audit. The notices were issued by Commissioner Inland Revenue, Audit Unit- 5, Zone – I, Regional Tax Office-II.
In their constitutional petitions, the petitioners stated that they were partner firms and are builders and developers having their registered office in Karachi. The petitioners said that the tax authorities issued them notices on November 19, 2014 under section 177 of the Ordinance, for the tax year 2012 . They said that the authorities allegedly selected the petitioners for audit and subsequently deputy commissioner Inland Revenue, Audit Unit-5, Zone-I, Regional Tax Office-II issued them notices.
According to the petitioners, commissioner Inland Revenue, Audit Unit – 5, Zone – I, Regional Tax Office-II has no authority to select any case for audit under section 177 of the ordinance, but only has the authority to conduct audit, the fact is that the power to select a case for audit is deffirent than power to conduct the audit and same has not been appreciated and accepted by both respondents.
Citing commissioner Inland Revenue, Audit Unit-5, Zone – I, Regional Tax Office-II. Deputy commissioner Inland Revenue, Audit Unit-5, Zone-I, Regional Tax Office-II and others as respondents, petitioners pleaded the SHC may set aside impugned notices and restrain the respondents from taking any coercive action against the petitioners.
