ISLAMABAD: A single bench of the Islamabad High Court (IHC) will hear a tax reference filed by Defence Housing Authority (DHA) on Friday in which the appellant has sought from court to issue directions to the Federal Board of Revenue (FBR) on deciding its appeal pending before the department since months.
The IHC single bench comprising Justice Aamer Farooq will hear the case. Defence Housing Authority had re-filed the case, seeking to restrict the Large Taxpayers Unit, Islamabad, from recovering outstanding tax amount of Rs 1.21 billion.
Earlier, in month of May, the same court had barred the LTU from recovering the said amount from the appellant under the head of outstanding tax. In its recent appeal, the petitioner had submitted that LTU had not decided its appeal challenging the show cause notice issued in pretext of outstanding tax amount, however, it did not recover the amount following the court’s directives.
Justice Aamer Farooq had also ordered LTU to decide DHA’s departmental application within 60 days which was yet not decided.
Through fresh petition, the appellant had challenged LTU order, issued on March 25, 2016 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under section 122 of Income Tax Ordinance, 2001.
Federal Board of Revenue (FBR), LTU’s chief commissioner, Inland Revenue (IR) commissioner, IR Appeals commissioner, assistant commissioner and ATIR were made party in the case.
Defence Housing Authority had prayed the court to directed LTU not to recover the said amount and abstain from any coercive action in this regard. Defence Housing Authority 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.
Because of departmental lethargy, the company was compelled to file a new petition before the IHC in order to seek lawful relief, it stated. The petitioner 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.
