ISLAMABAD: The Islamabad High Court (IHC) will hear a tax matter filed by M/s Ayub and Brothers on Friday (today), challenging a tax recovery notice of Rs 55.6 million issued by field office of the Federal Board of Revenue (FBR).
A single bench of the IHC comprising of Justice Miangul Hassan Aurangzeb would hear the case. M/s Ayub and Brothers had filed the case, seeking to restrict the Regional Tax Office (RTO), Islamabad, from recovering the outstanding tax amount of Rs 55,692,037. The outstanding amount has been generated against four years’ tax liabilities i.e. Rs 25.3 million for tax year 2010, Rs 8.5 million for tax year 2011, Rs 20.4 million for tax year 2012 and Rs 1.3 million 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 directed 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.
