KARACHI: M/s Indus Motor Company Limited has approached the Sindh High Court (SHC) and filed a constitutional petition against impugned notice for selection for audit issued by FBR and demanding taxes.
On 13 August 2021, counsel for the petitioner argued that petitioner is a duly incorporated company engaged in the manufacturer, assembling, marketing, distribution and sale of various vehicles, related accessories and spare parts sold under the brand name “Toyota”.
He further argues that petitioner challenges the unlawful actions of respondents in selecting petitioner for an audit under section 25 of the sales tax act, 1990 through notices issued by respondents dated August 03, 2021 for the relevant tax periods, notices issued by deputy commissioner Inland Revenue Audit Unit-04, Audit-II, Large Taxpayer’s Office dated August 04, 2021 and April 26, 2021, further notice dated July 09, 2021 for selecting a taxpayer for an audit.
Citing Chairman Federal Board of Revenue, Commissioner Inland Revenue Audit-II, Large Taxpayer’s Office and Deputy Commissioner Inland Revenue Audit Unit-04, Audit-II, Large Taxpayer’s Office as respondents, petitioner pleaded the court to declare that the impugned notices are without lawful authority and of no legal effect.
He further pleaded the court to declare that the impugned notices are unlawful and in violation of the proviso to section 25(2) as inserted through Finance act, 2018 and court suspend these impugned notices and prohibit respondents from taking any adverse action against the petitioner on the basis of the impugned notices for the relevant tax period.
