KARACHI: M/s Ittehad Food and Oil Industry has approached the Sindh High Court (SHC), challenging an impugned demand notice issued by deputy commissioner Inland Revenue, Unit- 2, Zone-IV, Large Taxpayers Unit-II.
The counsel for the petitioner stated in its constitutional petition that petitioner is engaged in the business of manufacturing of grain mill products and paying all liabilities regularly. However, the deputy commissioner Inland Revenue, Unit-2, Zone-IV, Large Taxpayers Unit-II has treated the petitioner a taxpayer in default by determining a unjustified demand of Rs 25,861,037/- under section 161 and lying default surcharge of Rs 3,636,707/- under section 205 of the Income Tax Ordinance, 2001.
According to the petitioner, it filed a reply but respondent had ignored the plausible reply filed by the petitioner in response to the show cause notice dated March 03, 2016 and impugned order was issued dated July 16, 2016 for making demand within 30 days from the date of issuance of the impugned order.
Petitioner said that it filed an appeal before the the commissioner Inland Revenue ( appeals-IV ) with stay application which are still pending, however, petitioner has apprehension that recovery proceedings will be initiated against it, therefore, now petitioner is at risk.
Citing secretary Ministry of Finance, chairman Federal Board of Revenue ( FBR ), commissioner Inland Revenue (Appeals-IV), commissioner Inland Revenue, Zone – IV and deputy commissioner Inland Revenue, Zone-2, Zone-IV, Large Taxpayers Unit-II as respondents, petitioner pleaded the SHC to set aside impugned demand notice and restrain them from taking any coercive action against the petitioner.
