LAHORE: Lahore High Court (LHC) restricted the Federal Board of Revenue (FBR) for issuance of tax notices to taxpayers beyond five years. LHC directed Federal Board of Revenue not to issue tax notices to those taxpayers of previous five years till further order.
Justice Muhammad Furrukh Irfan of Lahore High Court (LHC) heard the petition filed by M/s Mughal Steel Limited which was filed against the federal government and Federal Board of Revenue (FBR). The counsel of petitioner Muhammad Mohsin Virk argued that court that Federal Board of Revenue has issued audit notice to his client.
He further argued that Federal Board of Revenue issued notices under section 11(5) of sales tax act and date of notices has been expired because under the article 10(A) of constitution of Pakistan FBR cannot send notice after five years to taxpayers.
He prayed before the court that court to declare these notices as null and void which are already expired.
On the other side, the counsel for Federal Board of Revenue (FBR) argued before the court that notices were issued legally under the section 11(2) of sales tax act.
After hearing arguments from both sides, Lahore High Court (LHC) issued stay order in favor of petitioner and restricted the Federal Board of Revenue for the issuance of notices beyond five years.
