ISLAMABAD: The Islamabad High Court held hearing of several tax matters during third week of November and disposed of a case filed by M/s Pakistan Mobile Communication Limited, besides reserving verdict in M/s Mustehkam Cement Limited’s case.
Through both cases, the appellants had challenged show cause notices for recovery of various outstanding taxes. A single bench comprising Justice Aamer Farooq heard the matters.
M/s Pakistan Mobile Communication Limited has challenged show cause notice, dated June 14, 2016 for the tax year 2010, issued by the Large Taxpayers Unit (LTU), Islamabad. Justice Aamer Farooq disposed of the case by directing the LTU to decide appellant’s application within seven days and submit report before the bench. The bench also barred the LTU from recovering any outstanding tax amount under the disputed show cause notice.
The Pakistan Mobile Communication 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 billion and sales commission of Rs 5.86 billion.
Hearing another similar case, the bench reserved the decision on it. M/s Mustehkam Cement Limited had filed case challenging tax notice of Rs 3.396 billion. The company through the submission had challenged the notice.
It had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard. It also asked the court to suspend the operation of the impugned order issued by the tax authority till the decision of appeal pending with the LTU.
During third week of November, two different benches of IHC also adjourned hearing of couple of important tax matters, filed against FBR and Appellate Tribunal Inland Revenue.
Justice Athar Minallah and Justice Miangul Hassan Aurangzeb heard the cases filed by M/s Punjab Oil Mills against notice for recovery of federal excise duty. The bench adjourned hearing after hearing initial arguments.
Another bench, comprising Justice Mohsin Akhtar Kayani, heard a case filed by M/s Acro Spinning and Waving Mills Limited. The bench asked the associate lawyers of defendant and appellant that main counsels in the case should ensure their presence before the bench on next date of hearing.
M/s Acro Spinning through the submission had challenged show cause notice for recovery of Rs 934,620,225 in head of income tax issued by the Islamabad LTU.
