KARACHI: The Sindh High Court (SHC) has directed tax authorities not to take any coercive action against M/s Younus Textile Mills (Private) Limited for the recovery of impugned demand relating to Workers Welfare Fund (WWF) until the next hearing.
A division SHC bench, comprising Justice Munib Akhter and Justice Abdul Malik Gaddi, was hearing a petition filed by M/s Yonus Textile Mills against impugned demand notice in respect of WWF for the tax year 2014 and 2015. The court also issued notices to the commissioner Inland Revenue Audit Range A, Large Taxpayer Unit -4, deputy attorney general and others directing them to file their respective comments in the next hearing.
During the hearing, the counsel for the petitioner submitted that the issues raised in the petition are already pending before the court. The court directed the office to fix this petition along with other identical petitions.
Earlier, the petitioner’s counsel stated that respondents issued show cause notices on 18th April and 21st April 2016 to it asking to pay WWF on tax returns for the tax year 2014 and 2015. The counsel said that in terms of the judgment of the full bench of this court, it has been declared and held that the contribution of WWF is a tax on the “income of industrial establishment, the 1971 ordinance is a federal status but the 4” schedule to the constitution which prescribed the federal legislative list does not contain an entry which authorized a having for the “tax in income of industrial establishment.
The petitioner pleaded the SHC to declare section of the Finance act 2006, and 5 8 of the finance act 2008, whereby the workers welfare ordinance 1971 has been amended as completely illegal and without jurisdiction. The court was further requested to restrain the respondents from taking any action against the petitioner in recovery measures whatsoever.
