KARACHI: The Sindh High Court (SHC) has adjourned the hearing of an income tax reference application filed by Commissioner Inland Revenue Zone-III, Large Taxpayer Unit challenging impugned judgment of the Customs Appellate Tribunal over the recovery of disputed amount from M/s Fazal Textile Mills Limited. A two-member bench headed by Justice Aqeel Ahmed Abbasi was hearing the petition.
Earlier, counsel for the petitioner stated that the suspect is a taxpayer public limited company and is engaged in the business of manufacturing, selling, buying and dealing with all types of yarn and knitted fabrics.
According to the petitioner, the taxpayer filed return of income for the tax year 2010, however, during the examination department found the same as erroneous and prejudicial to the interest of revenue and amended the same under section 122 (5A) liable income of Rs 3,308,286 and balance tax payable at Rs 14,108,386, therefore, taxpayer was issued notice for recovery of tje said amount.
He argued that being aggrieved, taxpayer approached appellate tribunal which decided the issue of WWF (workers welfare fund) in favour of the department and the issue of addition on account of disposal of assets at the favor of taxpayer.
Citing M/s Fazal Textile Mills Ltd as respondent, counsel pleaded the court to set aside impugned judgment of the appellate tribunal and pass an order in favour of the applicant.
