KARACHI: A division bench of the Sindh High Court (SHC) restrained officials from taking final adverse action against the petitioners till next date of hearing on several constitutional petitions filed by M/s Al-Noor Sugar Mills and others against show cause notices for non-compliance of filing documents for their audit.
On 29 January 2021, court also issued notices to the respondents and deputy attorney general and directed petitioners that “meanwhile, petitioners shall submit response to the notices issued under section 177 and 182 of the income tax ordinance, 2001 and furnish the requisite documents, and may raise all legal and factual grounds, which shall be considered by the respondents in accordance with law, whereas, before passing any adverse order against the petitioners pursuant to audit proceedings, an opportunity of being heard shall be provided to the petitioners”.
Earlier, counsel for the petitioner’s stated that the Commissioner Inland Revenue Audit has selected the petitioners for audit of its income tax, sales tax and federal excise duty taxes on the direction of Prime Minister of Pakistan regarding inquiry commission report on sugar crisis.
They argued that respondents through notices dated July 14 and 21, 2020 directed the petitioners to produce records/ documentation, information and books of account in respect year of tax year 2016, 2017 and 2018, and petitioners requested them to provide reasonable time in order to submit legal and factual objections to the impugned notices in the light of judgments of the superior court of Pakistan, the captioned audit proceedings should not be commenced until the legal and factual objections to the notice are filed by our clients and an opportunity of hearing is given to our clients before order is passed on said objections.
Citing chairman FBR, commissioner Inland Revenue Audit, Deputy Commissioner Inland Revenue and others, petitioners pleaded the court may declare that the impugned section and impugned notices dated July 01 and 14 issued by respondents and all action and proceedings emanated there from, are illegal and violate the fundamental rights of the petitioner and are ultra vires the constitution and are therefore, null, void and at no legal effect.
