KARACHI: The Sindh High Court (SHC) has continued interm order made earlier on an constitutional petition filed by M/s Sukkur Electric Power Company Limited (SEPCL) against impugned recovery notice issued by the deputy commissioner Inland Revenue Withholding Tax Unit-I, Sukkur, Range-I.
A two-member bench, comprising Justice Irfan Sadat Khan and Justice Arshad Hussain Khan heard the petition. During the hearing, the counsel for the FBR requested for some time to file para wise comments. Therefore, the court adjourned the hearing and continued the interim order.
On last date of hearing, court had restrained the respondents from taking any coercive measures against the petitioner.
Earlier counsel for the petitioner stated that tax authorities issued a show cause notice dated February 17,2016 to the petitioner under section 161 (1 ),( A) /205 for the income tax not collected / short deducted read with rule 44 (4) of the income tax rules, 2002 for the tax year 2014, wherein it has been stated the petitioner had failed to deduct / collect proper advance income tax at the time of making payments to the sales of electricity, supplies/ service providers on disbursement of payment under various heads of accounts. It said that tax authorities has initiated recovery proceedings under section 137 (2 ) of the income tax ordinance, 20.
Citing secretary Revenue Division, commissioner Inland Revenue (Appeals-I ) Regional Tax Office, Quetta, deputy commissioner Inland Revenue Withholding Tax Unit – I as respondents petitioner pleaded the SHC may declare that the impugned demand notice is arbitrary, illegal and malafide, court may also quash and set aside impugned demand notice. It also pleaded the court may restrain them from taking any coercive action against the petitioner.
