ISLAMABAD: A single bench of the Islamabad High Court (IHC) on Wednesday disposed of a tax reference filed by Islamabad Electric Supply Company (IESCO) with directions to the Regional Tax Office to decide the case within 45 days.
IESCO had challenged a notice of Rs 551.1 million issued by the RTO for the recovery of the outstanding tax amount.
A single bench of the IHC comprising Justice Aamer Farooq heard the case and directed the field office of the Federal Board of Revenue (FBR) to hear and decide the case within 45 days.
The court also directed the tax collecting office to submit a compliance report before the court immediately after implementing the directives.
Islamabad Electric Supply Company (IESCO) had filed the tax reference seeking restrictions for Regional Tax Office, Islamabad. The company had sought the court to direct the FBR field office not to recovery the said amount and abstain from any coercive measure against the appellant.
Commissioner Inland Revenue, Deputy Commissioner Inland Revenue Audit, Commissioner Inland Revenue Appeals and others were made respondents in the case.
Through the petition, Islamabad Electric Supply Company (IESCO) had complained against Deputy Commissioner Inland Revenue that he had issued an assessment, dated, May 30, 2016 which was illegal and unjust.
Inland Revenue officer made an assessment of recoverable outstanding tax amounting to Rs 551,142,009 in head of income tax under provisions of Income Tax Ordinance, 2001. The notice was issued for tax year 2014 to 2015.
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. 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 RTO.
