KARACHI: The Sindh High Court (SHC) has directed the commissioner (legal) Inland Revenue Large Taxpayers Unit/ chief commissioner Regional Tax Office to arrange another counsel before the next date of hearing.
The court issued the order on an appeal filed by commissioner (legal) Inland Revenue Large Taxpayer Unit against Appellate Tribunal Inland Revenue (ATIR) order over recovery of income tax from M/s Siemens Pakistan Engineering Company Limited. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the appeal.
During the hearing, the court was informed by the tax department that Jawaid Farooqui has been de-notified from the panel of advocates responding the FBR and requested the court, his name may be deleted from the file cover. Therefore, the court passed an order accordingly and directed the tax authorities to make some alternate arrangement before the next date of hearing. The court adjourned the hearing for third week of February 2017.
Earlier, counsel for the applicant stated that M/s Siemens Pakistan Engineering Company Limited is engaged in the business of manufacturing and sales of engineering goods, which was required to pay 90 percent of tax liability under section 147 (6) (4A) of the Income Tax Ordinance, 2001. The company was asked to pay Rs 322.2 million along with the returns of income filed on September 29, 2007 but it paid Rs 278.8 million, including withholding tax, advance tax and adjustments. In this way, the company paid Rs 43.3 million less than its liability.
According to the applicant, a show cause notice was issued to the company which filed an appeal before the commissioner (appeals) who confirmed the order of the taxation officer considering the same on legal and justified. Therefore, the said respondent filed another appeal before the appellate tribunal which vacated the order of the commissioner (appeals).
Citing M/s Siemens Pakistan Engineering Company Limited as respondent, the applicant pleaded the court to set aside the order of the appellate tribunal and restore its order.
