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Home Breaking News

M/s Altas Honda approaches SHC challenging notices for audit

byM.B. Rana
26/08/2021
in Breaking News, Karachi, Latest News
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KARACHI: M/s Altas Honda Limited has approached the Sindh High Court (SHC) and filed a constitutional petition against issuing impugned notices for selection of audit for tax year 2016 to 2019 by Assistant/ Deputy Commissioner Inland Revenue Audit Unit-III, Range-B and others.

On 25 August 2021, counsel for the petitioner states that petitioner has challenged the notices issued under section 177 of the income tax ordinance 2001, for tax year 2016 to 2019 by the Commissioner Inland Revenue Audit-II, dated August 11, 2021 and the Assistant/ Deputy Commissioner Inland Revenue Audit Unit-III, Range-B dated August 11, 2021.

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He argues that the impugned notices are in violation of the circular dated Oct 05, 2009 through which the Chairman FBR had clarified that an audit under section 177 can only be undertaken in respect of the tax year that is proceeding and any discrepancy identified in respect of a person’s previous tax years’ declarations can only be addressed under section 122 of the ordinance, the impugned notices in relation to tax year 2016 to 2018 are further in violation of omitted clause 105 of the second schedule to the ordinance as the petitioner’s audit had already been undertaken for tax year 2015.

He added that the impugned notices assess the petitioner as they have been issued in pursuance of oral instructions to assess the automotive sector.

Citing Chairman FBR, Member Inland Revenue-Operations, Commissioner Inland Revenue Audit Unit-II, Assistant/Deputy Commissioner Inland Revenue Audit Unit-III, Range-B and respondents, petitioner pleaded the court may declare that the impugned noticed for tax years 2016 to 2019 have been issued without lawful authority and are of no legal effect.

He further pleaded the court to suspend the impugned notices and restrain them from taking any adverse action against the petitioner till final order in this petition.

 

 

 

 

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