KARACHI: The Sindh High Court (SHC) has directed the tax authorities not to enforce recovery of the impugned demand which is a subject matter of appeal till the next date of hearing. The court ordered this on a constitutional petition filed by M/s Advance Telecom against impugned show cause notices for recovery of super tax to the tune of Rs 101.5 million.
During the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi issued notices to the tax authorities and deputy attorney general, directing them to file their respective comments on next date of hearing. The court adjourned the hearing for January 23, 2016.
Earlier, counsel for the petitioner stated that petitioner is importer, exporter and trader of mobile phones of different brands and fulfilling all liabilities regularly. However, the tax authorities issued two show cause notices dated 27/12/2016 under section 122 (G) read with section 122 (5A) for amendment of assessments for the tax year 2015 and 2016 wherein it was alleged that the petitioner was liable to pay super tax for rehabilitation of temporarily displaced persons under section 4B, (1) (III) of the Income Tax Ordinance for 2015 to the tune of Rs 58.84 million and for 2016 of Rs 4.26 million.
Citing Secretary Revenue division, commissioner Large Taxpayer Unit (LTU), additional commissioner Inland Revenue Taxpayer Unit LTU as respondents, the petitioner pleaded the court to declare that act of the respondents as illegal, mala fide and arbitrary. The importer also pleaded the court may set aside impugned show cause notices issued by respondents.
