KARACHI: The Sindh High Court (SHC) served a notice on M/s Fazal Textile Mills Limited on an Income Tax Reference Application filed by Commissioner Inland Revenue Zone-III, Large Taxpayer Unit, challenging the impugned judgment of appellate tribunal over the recovery of disputed amount.
Hearing the reference application, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, also directed the respondent to file its para-wise comments on the next date of hearing. The court adjourned the case after the vacation.
Earlier, counsel for the applicant stated that abovementioned taxpayer is a public Limited company and engaged in the business of manufacturing, selling, buying and dealing with all types of yarns and knitted fabrics.
According to the applicant, taxpayer filed the return of income for the tax year 2010 and, during the examination department, he found the same as erroneous and prejudicial to the interest of revenue and amended the same under section 122 (5A) which is liable income of Rs03.3million and balance tax payable at Rs15million therefore taxpayer was issued notice for recovery of said amount.
He argued that being aggrieved, taxpayer approached the appellate tribunal which decided the issue of WWF (workers welfare fund) in favour of the department and the issue of addition on account of disposal of assets in favour of taxpayer.
Citing to M/s Fazal Textile Mills Limited as respondent, the counsel pleaded with the court to kindly set aside the impugned judgment of the appellate tribunal and pass an order in favour of the applicant.
