KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from taking any coercive action against Jubilee General Insurance Company Limited. The court ordered this on another constitutional petition, challenging a show cause notice issued by deputy commissioner Inland Revenue E&C Unit-III, Zone-III LTU Karachi for recovery of disputed amount.
While the hearing of the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, also issued notices to tax authorities and deputy attorney general and directed them to file their respective para wise comments on the next date of hearing. The court adjourned the hearing for April 21, 2017.
During the hearing, counsel for the petitioner submitted that in pursuant of the order, passed by the respondents against the petitioner on August 27, 2015, for the tax year 2010, the petitioner approached the appellate tribunal and moved an appeal along with stay application, which is pending for disposal. However, during the pendency of such appeal, the respondents have initiated coercive action for recovery of the impugned disputed amount, which is subject-matter of appeal before the appellate tribunal.
He argued that a taxpayer, if aggrieved by an adverse order passed by revenue authorities, is entitled to seek remedy of appeal provided under the relevant statues by approaching the forums of appeal, therefore, the recovery proceedings initiated by the respondents department, under the circumstances, are based on mala fide.
Citing Secretary Ministry of Finance, chairman Federal Board of Revenue, Appellate Tribunal Inland Revenue Appeals-I, commissioner Inland Revenue Appeals-I, additional commissioner Inland Revenue, Audit Range-B, Zone-III LTU, Karachi and deputy commissioner Inland Revenue E&C Unit-III, Zone-III LTU Karachi as respondents, petitioner pleaded the court to restrain them from taking any coercive action till final disposal of its appeals pending before appellate tribunal.
