ISLAMABAD: The Islamabad High Court (IHC) will hear a tax reference filed by M/s Wah Industries Limited on Monday, challenging a tax recovering claim issued by field office of the Federal Board of Revenue (FBR).
A single bench of the IHC comprising Justice Aamer Farooq will hear the case. The court had adjourned the hearing of the case during June following appeal forwarded by the department’s counsel to grant him time.
M/s Wah Industries Limited had filed the case seeking restrictions for Large Taxpayers Unit, Islamabad about recovering outstanding tax amount of Rs143,453,176. The appellant had also sought from court to nullify the LTU order carrying the claim about outstanding tax amount.
The appellant had challenged an LTU order, dated May 31, 2016 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 the tax year 2015.
Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, Additional Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) were made respondent in the case.
The appellant had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard.
The appellant 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 the 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.
