ISLAMABAD: The Islamabad High Court (IHC) on Monday disposed of a tax matter challenging tax recovery claim announced by the field office of Federal Board of Revenue (FBR).
A division bench of the IHC comprising Justice Shaukt Aziz Siddiqui and Justice Mohsin Akhtar Kiyani heard the case with directions to decide M/s TNB Liberty Power Limited’s application pending at the Large Taxpayers Unit (LTU) and barred the board from making any recovery till decision over that application. M/s TNB Liberty Power Limited had filed the case against LTU field office.
ATIR, Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, Deputy Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) were made respondent in the case.
M/s TNB Liberty Power Limited Islamabad had filed the case seeking restrictions for Large Taxpayers Unit, Islamabad about recovering outstanding tax amount or making any other coercive move prior to court’s directions on the issue.
M/s TNB Liberty Power Limited Islamabad also stated that show cause notice mentioning outstanding tax amount was issued with malafide intentions. The appellant further prayed the court bar LTU from taking coercive measure to recover the said amount.
M/s TNB Liberty Power Limited 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 amid processing the notice of recovery demand while later the adjudication did not addressed grievances of the appellant.
The appellant had also prayed the court to decide the case early as the appellant had to bear financial complications after the case.
Meanwhile, the court would also hear some other tax references challenging recovery claims made by the field offices of FBR.
