KARACHI: The Sindh High Court (SHC) has directed tax authorities to file para wise comments on a constitutional petition filed by M/s Al Sons Auto Parts (Private) Limited against selection for audit for tax year 2015 and restraining order for cancelling/ suspending or otherwise revoking the exemption granted for the year 2017 by the customs department.
A two-member bench, headed by Justice Irfan Sadat Khan and Justice Muhammad Arshad Hussain, heard the petition.
During the hearing, counsel for the additional commissioner Inland Revenue Large Taxpayers Unit, Audit-I, Zone-II appeared before the court and sought time to file comments, therefore, the court adjourned the matter for July 13, 2017.
Earlier, counsel for the petitioner stated that petitioner is carries out the lawful business of manufacturing of automotive parts and other precision parts, imports various parts and material for its manufacture process in terms of section 148 of the Income Tax Order, 2001 and fulfils its entire tax obligation without question.
According to the petitioner it had obtained exemption certificate in terms clauses 72 B of the IV parts of the second schedule of the Income Tax Ordinance 2001. However, the petitioner was wrongfully and erroneously selected for audit by customs authorities for tax year 2015 illegally.
Citing chairman Federal Board of Revenue, the Commissioner Inland Revenue Large Taxpayers Unit, Audit-I, Zone-III, deputy commissioner Inland Revenue Large Taxpayers Unit, Audit-I, Zone-III and additional commissioner Inland Revenue Large Taxpayers Unit, Audit-I, Zone-II as respondents, he pleaded the court may restrain them from audit till final decision of its petition.
He also pleaded the court may restrain tax department from cancelling/ suspending or otherwise revoking the exemption granted for the year 2017.
