LAHORE: The Lahore High Court (LHC) has restricted the Federal Board of Revenue (FBR) from collecting advance tax and declares null and void all the recovery notices issued to the taxpayers.
According to the details, Justice Shahid Karim heard the case filed by the appellant M/s Paradise Agencies in which the counsel for the appellant argued that under the section 147 of Income Tax Ordinance 2001, the FBR was authorized to recover advance tax from the taxpayers.
The counsel argued that prior to this FBR was authorized to recover advance tax in four easy installments after assessment. But after LHC verdict, the FBR can recover tax according to the assessment by the taxpayers.
He said that despite LHC orders, the FBR is sending notices to the taxpayers and the court may stop the FBR from recovering advance tax.
On the other side, the counsel for appellant argued before the court that advance tax recovery notices were issued by the FBR keeping in view of the orders of Lahore High Court (LHC).
After hearing the arguments from both sides LHC has declares null and void the notices issued by FBR and directed for the appellant taxpayers to pay tax as per their own assessment instead of FBR assessment.
