LAHORE: The Lahore High Court stopped the Federal Tax Ombudsman from using contempt court powers.
Advocate Akram filed a petition, submitted that the Federal Tax Ombudsman was using contempt of court powers under Article 204 of the Constitution.
He said that exercising such power by the department was unconstitutional as the FTO was created as a result of statutory law and it could not use constitutional power.
After hearing the arguments, the court stopped FTO from using contempt of court powers till a final decision on the petition.
Meanwhile, Justice Khalid Mahmood Khan of the LHC ordered owners of business train to pay Rs.2.5 million per day to Pakistan Railways.
The Railways filed a petition and submitted that a contract was signed between owners of Four Brothers business train and Railways authorities under which train’s owner had to pay rent of Rs3.3 million per day.
The railways said that train owners were violating the contract and had not paid a single penny. The department requested the court to direct train owners to pay rent as per the contract.
The court, however, passed an order for payment of Rs2.5 million per day to Railways and adjourned hearing of the indefinite period.
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