ISLAMABAD: A single bench of the Islamabad High Court (IHC) on Thursday adjourned the hearing of a tax reference filed by M/s Pakistan Mobile Communication Limited (PTCL) in which the company had challenged a tax recovery notice amounting to Rs 122,865,125 issued by field office of Federal Board of Revenue (FBR).
The IHC single bench comprising Justice Aamer Farooq heard the case and adjourned the same for coming September with direction to submit relating documents.
M/s Pakistan Mobile Communication Limited had filed the case seeking restrictions for Large Taxpayers Unit, Islamabad about recovering outstanding tax amount of Rs122,865,125. 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, issued in February, 2016 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under section 122 of Income Tax Ordinance, 2001.
Federal Board of Revenue (FBR), officers of LTU including commissioner Inland Revenue, additional commissioner Inland Revenue, commissioner Inland Revenue (Appeals) and Appellate Tribunal Inland Revenue were made respondent in the case.
M/s Pakistan Mobile Communication Limited had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard.
M/s Pakistan Mobile Communication Limited 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.
