ISLAMABAD: A division bench of the Islamabad High Court (IHC) has adjourned the hearing of M/s Pakistan Tobacco Company Limited’s reference, challenging a show cause notice issued by the Large Taxpayers’ Unit, Islamabad.
A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hassan Aurengzeb held the hearing of the matter for the first time in division bench and adjourned it following counsel’s requests.
Earlier, this case was heard by a single bench of the IHC. The appellant had approached the court challenging the previously given decision.
Through the petition, M/s Pakistan Tobacco Company Limited had challenged the imposition of ‘super tax regime 2015’ against the formulated terms and conditions.
Super tax is being imposed for collecting funds for rehabilitation of temporarily displaced persons under provisions of Income Tax Ordinance, 2001 after inserting section 4-B of Finance Act, 2015 in the Income Tax Ordinance, 2001.
The petition has challenged super tax imposition stating that double tax was being charged under section 4-B of Finance Act, 2015 as the Federal Board of Revenue was using the said section (4-B) of Finance Act, 2015 for charging of super tax separately under Income Tax Ordinance, 2001. Hence, the section was being used to charge the tax twice, petitioner stated.
M/s Pakistan Tobacco Company Limited also submitted before the court that super tax should be imposed on rich people only under the particular division, 11A, of the first schedule on income of every person specified in ‘sold division.’
“The tax is being imposed on taxpayers under section 4-B, which itself is charging section, hence, under this provision it cannot be charged twice”, M/s Pakistan Tobacco Company Limited stated.
The company had filed the case against officers of the Finance Ministry and the FBR.
Commissioner Inland Revenue (Audit), Additional Commissioner Inland Revenue (Audit), and Deputy Commissioner Inland Revenue (Audit), Large Taxpayers’ Unit were made respondents in the case.
