KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from taking any coercive action against M/s Al-Abbas Cotton Ginning Pressing Factory and Oil Mill. The court took this action on a constitutional petition filed by the company against the impugned recovery notice for the tax year 2011.
Hearing the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, also issued notices to the tax authorities and deputy attorney general of Pakistan directing them to file their respective comments on the next date of hearing, then the court adjourned the hearing for January 17, 2016.
Earlier, counsel for the petitioner submitted that pursuant to the demand of income tax created by the respondents for the tax year 2011, the petitioner had filed an appeal before the commissioner (appeals) IR Hyderabad along with a stay application, which are pending for disposal. However, during the pendency of such appeal, the respondents issued a recovery notice dated November 03, 2016 under Section 122 (5A) of the Income Tax Ordinance 2001 and intended to recover the disposed amount by adopting coercive measures.
According to the petitioner, a taxpayer, if aggrieved by an adverse order passed by the revenue authorities, is entitled to seek remedy of appeal provided under the relevant statute by approaching at least before an independent forum of appeal.
Citing the Chief Commissioner Inland Revenue, Regional Tax Office RTO, the Commissioner Inland Revenue Appeals, Regional Tax Office RTO, Additional Commissioner Inland Revenue, Regional Tax Office RTO Hyderabad and Deputy Commissioner Inland Revenue E&C Unit-X RTO Hyderabad as respondents, the petitioner pleaded with the court to declare the act of the tax authorities as illegal, mala fide and arbitrary.
The petitioner also pleaded with the court to set aside the impugned recovery notice and restrain them from taking any coercive action against it.
