ISLAMABAD: The Islamabad High Court (IHC) on Wednesday reserved a decision in a case filed by M/s Mustehkam Cement Limited challenging a tax notice issued by the Large Taxpayers Unit (LTU), Islamabad, for recovery of Rs 3.396 billion.
A single bench of the IHC comprising Justice Aamer Farooq heard the case. Through the petition, the company had challenged a re-assessment of the company’s tax payments for the year 2010 under which the tax department had issued notice to recover the outstanding tax.
The company had prayed the court to direct LTU not to recover the said amount and abstain it from any coercive action against it, besides asking the court to suspend the operations of impugned order until the decision is announced in the appeal pending with the LTU.
M/S Mustehkam Cement submitted before the court that the impugned order was issued under mala fide intentions and had no legal standing or authority and the court may decide on relief which it deemed appropriate in this regard. It also stated that due legal course was not followed by the department in issuing the order.
The appellant had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication filed to address grievances of the appellant.
Federal Board of Revenue (FBR), Inland Revenue (IR) commissioner, deputy commissioner and IR-Appeals commissioner were made respondent in the case.
