ISLAMABAD: Directing the Federal Board of Revenue to submit report on issuance of show cause notice, the Islamabad High Court (IHC) on Tuesday adjourned the hearing of a tax reference filed by M/s Aftab Traders.
M/s Aftab Traders complaint was heard by the IHC division bench comprising Justice Shaukat Aziz Siddiqui and Justice Mohsin Akhtar Kayani. The bench adjourned the hearing for coming week after hearing initial arguments in the case.
The appellant had filed a complaint against the Appellate Tribunal Inland Revenue (ATIR) and the Federal Board of Revenue (FBR).
M/s Aftab Traders, through the submission, had challenged a show cause notice for recovery of Rs 2,311,870 under the head of income tax.
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 Aftab Traders had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard.
M/s Aftab Traders had prayed the court operation of the impugned order issued by the tax authority may kindly be suspended till the decision of appeal pending before the LTU. The petition was filed in 2013 and the court had held several hearings on the matter before.
M/s Aftab Traders 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 too.
