ISLAMABAD: The Islamabad High Court (IHC) on Friday disposed of a tax reference barring the Federal Board of Revenue (FBR) from recovering outstanding tax amount of Rs 20.2 million from the M/s Pakistan Engineering Council.
A single bench, comprising Justice Aamer Farooq, heard the tax reference filed by Pakistan Engineering Council and directed the FBR field office, Regional Tax Office (RTO), Islamabad, to decide fate of appellant’s appeal within seven days. The appellant’s appeal was pending with the Inland Revenue-Appeals Commissioner.
The council had made RTO chief commissioner, IR assistant commission, IR-Appeals commissioner and federal government through the chairman of Federal Board of Revenue (FBR) respondent in the case.
The appellant had challenged a show cause notice, dated September 30, for the tax year 2014, to recover income tax. The IR assistant commissioner had issued the notice under sections of income tax ordinance, 2001 to the council to recover Rs 20,200,080.
The court had barred the department from taking any coercive action for realising the recovery of said amount from the appellant. The bench had also directed the board to submit reply before the court after completion of deadline of seven days.
The Pakistan Engineering Council had prayed the court to direct RTO not to recover the said amount and abstain from any coercive action in this regard.
The petitioner had prayed the court that operation of the impugned order issued by the tax authority may kindly be suspended till the decision of appeal pending with the RTO.
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.
