LAHORE: The Supreme Court, Lahore registry, has sought a reply from the Federal Board of Revenue (FBR) in the case of common wealth tax on rental properties.
A two-member bench comprising Justice Saqib Nisar and Justice Shiekh Azmat Mehmood heard the case in which common wealth tax on rental properties was challenged.
The counsel for the appellant said that his client’s factory was running in losses he closed his business and rent out the property to the third party. However, the FBR has sent common wealth tax notice to him illegally. He prayed that the court to declare the tax imposed on the appellant as null and void.
On the other side, Sarfarz Cheema, the counsel for FBR, told to the court that the department has imposed tax under the law, adding that rental properties are divided in three categories by the FBR and common wealth tax has been imposed under the law.
After hearing the arguments from the both sides Supreme Court has ordered the counsel of appellant to disclose all facts regarding the case and common wealth tax on leased properties.
Court also seeks reply from the Federal Board of Revenue (FBR) on the next date of hearing. Court said in the remarks that according to the broad vision in case of close of business federal board of revenue cannot impose taxes.
