ISLAMABAD: Islamabad High Court reserved decision of a tax matter filed by M/s Ayub and Brothers challenging tax recovery claims amounting to Rs 55,692,037 issued by field office of Federal Board of Revenue (FBR).
IHC single bench comprising Justice Miangul Hassan Aurangzeb heard the case and reserved decision on it after hearing arguments from counsel of M/s Ayub and Brothers and Federal Board of Revenue (FBR).
M/s Ayub and Brothers had filed the case seeking restrictions for Regional Tax Office, Islamabad about recovering outstanding tax amount of Rs 55,692,037. The outstanding amount has been generated against four years’ tax liabilities i.e. Rs25,375,834 for tax year 2010, Rs8,538,332 for tax year 2011, Rs20,433,134 for tax year 2012 and Rs1,344737 for tax year 2013.
The appellant had challenged an RTO order, issued on June 13, 2014 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under provisions of Income Tax Ordinance, 2001, for tax year 2012.
Federal Board of Revenue (FBR), officers of RTO including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and other officers were made respondent in the case.
M/s Ayub and Brothers had prayed the court to direct RTO not to recover the said amount and abstain from any coercive action in this regard.
M/s Ayub and Brothers 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.
