KARACHI: M/s Atlas Battery Limited has approached the Sindh High Court (SHC) and filed a constitutional petition against demand notice and seeking restraining order from any adverse action over disputed income tax matter.
On 31 July 2021, counsel for the petitioner states that on June 29, 2021, the assessing officer passed an order under section 161 (i) of the income tax ordinance, 2001, wherein it decided against the petitioner on a number of issues, the assessing officer thus raised a huge demand against the petitioner.
He further informs the court that the notice of demand requires the petitioner to pay the impugned demand within thirty days of its service, failing which it threatens to impose additional tax and penalty under the ordinance, the notice of demand was received on June 29, 202, hence, on July 25, 2021, the thirty-day period has already expired on July 28, 2021.
He further argues that petitioner’s appeal and stay application remain pending before the appellant forum without any order, the petitioner is completely in the dark as to when its appeal and stay application shall be decided. The petitioner apprehends that in the absence of a stay order, the remaining respondents shall immediately initiate coercive recovery proceedings against its assets and receivable.
Citing secretary Revenue Division, Chairman FBR, Commissioner Inland Revenue (Appeal-II) and Commissioner Inland Revenue Enforcement-II Large Taxpayers Office as respondents, petitioner pleaded the court to prohibit the respondents from taking any adverse action against the petitioner on the basis of the order and notice of demand dated June 29, 2021 till the petitioner’s appeal is finally decided by respondent no 2 and for a further seven days thereafter in the event of an adverse appeal order so as to enable the petitioner to file a statutory appeal and seeks interim relief from the appellate tribunal within such period.
