KARACHI: The Sindh High Court (SHC) has directed the tax department not to take any coercive action against M/s Taufiq Associates and suspended the proceedings of tax fraud case of Rs 916, 786, 215.
A two-member bench, comprising Justice Irfan Sadat Khan and Justice Muhammad Humayun Khan was hearing the petition. After the hearing, the court adjourned the case and continued the interim order pass earlier.
On last date of hearing, the court had passed the interim order in which court had restrained the respondents from taking any coercive action against the petitioner.
Earlier, counsel for the petitioner stated that a show cause notice was issued to the petitioner alleging that the accused person through fake input tax claims brought colossal loss to the national exchequer amounting to Rs 916,786,215
The counsel for the petitioner argued that act of the respondents is illegal, arbitrary and mala fide because petitioner always fulfilled all the legal requirements.
Citing Federal Board of Revenue (FBR) chairman, Regional Tax Office-III (RTO) Zone IV Inland Revenue (IR) officer and IR chief commissioner of RTO-II as respondents, the petitioner pleaded the court may declare that act of the department illegal, as it is arbitrary and of no legal effect.
The importer also pleaded the SHC may suspend the proceedings which were started against the petitioner by the tax department and restrain them from taking any coercive action against the petitioner.
