KARACHI: The Sindh High Court (SHC) has barred the tax authorities from taking any coercive action against M/s Al-Karam Textile Mill (Private) Limited for the recovery of disputed tax amount. The court ordered this on a constitutional petition filed by the petitioner against the demand notice issued by deputy commissioner Inland Revenue Enforcement and Collection Unit-II, Zone-V LTU-I Karachi.
While the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, issued notices to the tax department and deputy attorney general and directed them to file their respective comments on the next date of hearing.
Earlier, counsel for the petitioner stated that on pursuant order dated 1st June, 2017 passed by the respondents for the recovery of disputed amount, the petitioner moved an application before the commissioner Inland Revenue Appeals-I, LTU Karachi which is still pending before it along with stay application. However, during pendency of such appeal, the tax authorities started threatening the petitioner for the impugned demand, including attachment of its bank accounts.
Citing Chief Commissioner Inland Revenue Large Taxpayers Unit LTU, the Commissioner Inland Revenue Appeals, Large Taxpayers Unit (LTU) and deputy commissioner Inland Revenue Enforcement & Collection Unit-II, Zone-V LTU-I Karachi as respondents, petitioner pleaded the court may declare that act of the tax authorities is illegal, mala fide and arbitrary and restrain them from taking any coercive measures till final decision of its appeal.
