ISLAMABAD: A single bench of Islamabad High Court disposed of a tax reference filed by Defence Housing Authority with directions to decide appellant’s departmental appeal and to restraint from coercive actions against the authority.
IHC single bench comprising Justice Aamer Farooq will hear the case. Defence Housing Authority in fresh orders restricted the Large Taxpayers Unit, Islamabad from recovering outstanding tax amount of Rs 1,210,253,332.
The authority had approached the court again seeking fresh directions to the Federal Board of Revenue on deciding its appeal pending before the department since months.
Earlier, in month of May, the same court had barred the LTU from recovering the said amount from the appellant in head of outstanding tax. In its recent appeal, the petitioner had submitted that LTU had not decided its appeal challenging the show cause notice issued in pretext of outstanding tax amount, however, it did not recover the amount following the court’s directives.
Justice Aamer Farooq had also ordered LTU to decide DHA’s departmental application within 60 days but unfortunately the orders were not implemented in letter and spirit and the authority had reached the court again.
Through fresh petition, the appellant had challenged LTU order, issued March 25, 2016 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under section 122 of Income Tax Ordinance, 2001.
Federal Board of Revenue (FBR), LTU’s Chief Commissioner, Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals), Assistant Commissioner Inland Revenue and ATIR were made party in the case.
Defence Housing Authority had prayed the court to directed LTU not to recover the said amount and abstain from any coercive action in this regard. Defence Housing Authority submitted before the court that the impugned order was issued under mala fide intentions and had no legal standing or authority and the court may decide on relief which it deemed appropriate in this regard. It also stated that due legal course was not followed by the department in issuing the order.
Because of departmental lethargy, the company was compelled to file a new petition before the IHC in order to seek lawful relief, it stated. The petitioner had prayed the court operation of the impugned order issued by the tax authority may kindly be suspended till the decision of appeal pending before the LTU.
