ISLAMABAD: The Islamabad High Court (IHC) on Friday directed M/s Acro Spinning and Waving Mills Limited and the Federal Board of Revenue (FBR) to appear before the bench on the next date of hearing.
While hearing a tax reference filed by Acro Spinning, a single bench of the IHC, comprising Justice Mohsin Akhtar Kayani, asked the associate lawyers of defendant and appellant that main counsels in the case should ensure their presence before the bench on the next date of hearing.
The bench adjourned hearing of the case following the absence of main counsels and request of adjournment by the defendant.
The company had challenged show cause notice for recovery of Rs 934,620,225 under the head of income tax. The Large Taxpayers’ Unit, Islamabad had issued the show cause notice to the appellant.
Appealed Tribunal Inland Revenue (ATIR), Federal Board of Revenue (FBR), officers of LTU including IR commissioner, deputy commissioner and IR-Appeals commissioner were made respondent in the case.
The company had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard. It also asked the court may suspend the operation of the impugned order issued by the tax authority till the decision of appeal pending before the LTU.
It 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.
The appellant had also mentioned that departmental obligations were not met while processing the notice. The appellant also maintained that its grievances were neither entertained by the departmental adjudication.
