ISLAMABAD: A single bench of the Islamabad High Court (IHC) on Tuesday disposed of a tax reference filed by M/s Pakistan Mobile Communication Limited, challenging a show cause notices issued by the Large Taxpayers Unit, Islamabad.
A single bench of the IHC comprising of Justice Aamer Farooq heard the case and directed the LTU to hear and decide the appellant’s application within seven days and submit a report before the bench.
The bench also barred the LTU from recovering any outstanding tax amount under the disputed show cause notice. M/s Pakistan Mobile Communication Limited had challenged the show cause notice issued on June 14, 2016 for the tax year 2010.
M/s Pakistan Mobile Communication Limited had been issued the notices under provisions of Income Tax Ordinance, 2001 stating reassessing the given discount and sales commission. The company had availed a discount of Rs 3,074,034,181 and sales commission of Rs 5,860,053,946.
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.
M/s Pakistan Mobile Communication Limited had prayed the court to directed LTU not to recover the said amount and abstain from any coercive action in this regard. The appellant had also sought from court to nullify the LTU order carrying the claim about outstanding tax amount.
M/s Pakistan Mobile Communication Limited 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.
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.
After disposing of the matter, the IHC administration is likely to receive department’s response within the deadline issued by the bench.
