ISLAMABAD: The Islamabad High Court on Friday reserved a decision on M/s Biafo Industries’ tax reference challenging a recovery claim of Rs784million made by the Large Taxpayers Unit Islamabad.
Justice Aamer Farooq of the IHC heard the case and reserved the decision after hearing arguments from both sides.
The bench has been hearing the case for several recent weeks and on Friday concluded it with the final arguments from both sides. The bench is likely to announce its decision in the coming week.
M/s Biafo Industries had filed the case challenging a show cause notice issued by the Large Taxpayers Unit Islamabad.
M/s Biafo Industries had named Federal Board of Revenue (FBR), officers of LTU, including Commissioner Inland Revenue, and others as respondent in the case.
M/s Biafo Industries had submitted that the LTU had issued the show cause notice in ignorance of law and the appellant’s submissions were not addressed completely challenging recovery notice of outstanding tax amount.
M/s Biafo Industries had prayed the court to direct the LTU not to recover the said amount and abstain from any coercive action in this regard.
M/s Biafo Industries 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.
M/S Biafo Industries had prayed the court that issued order by the tax authority may kindly be suspended till the decision of appeal pending before the field office.
