ISLAMABAD: A single bench of the Islamabad High Court (IHC) has adjourned the hearing of a tax reference filed by M/s Karim Aziz Industries (Private) Limited, seeking to restrict the Large Taxpayers’ Unit from recovering outstanding tax amount of Rs 7,430,069.
The single bench comprising Justice Aamer Farooq heard the case and dated in office for further scheduling of the case. The court was hearing the petition filed by M/s Karim Aziz Industries.
The appellant had filed the case against officers of Large Tax Payers Unit, Islamabad. Deputy Commissioner Inland Revenue Audit and Commissioner Inland Revenue Appeals were made respondents in the case.
Through the petition, the appellant had complained against Deputy Commissioner Inland Revenue Audit that he had issued an assessment, dated, May 30, 2016.
In the order the Deputy Commissioner Inland Revenue Audit made an assessment of recoverable outstanding tax amounting to Rs7,430,069
Through the order and preceding show cause notice the company was informed about a number of discrepancies in tax payments made by M/s Karim Aziz Industries Private Limited.
According to details mentioned in petition, the show cause notice issued highlighted discrepancies that the income tax returns filed for the tax years 2013 and 2014, the registered person has declared sales of Rs1,215,536,498 and Rs1,717,713,948 respectively.
Whereas less sales of Rs798,167,500 and Rs1,392,076,000 in the said tax periods have been declared in the monthly sales tax returns along with supplies to un-registered persons amounting to Rs417,368,998 and Rs325,637,948 for the said years. With these findings M/s Karim Aziz Industries Private Limited was issued the impugned assessment order by the Deputy Commissioner Inland Revenue Audit for recovering the tax calculated.
The counsel had argued in previous hearings that the mentioned facts revealed that company has made supplies to unregistered person, but not deposited further tax at the rate of one percent on the supplies of and violated provisions of sales tax act, 1990 and sales tax special procedure rules 2007.
The petitioner had argued that the order had been issued with malafide intentions and resultantly coercive measure of recovery of sales tax were started which must be stopped.
The petitioner had prayed the court operation of the impugned order issued by the Deputy Commissioner Inland Revenue Audit may kindly be suspended till the decision of appeal pending before the commissioner appeals.
