KARACHI: The Sindh High Court (SHC) restrained the tax department from taking any coercive action against the petitioner and directed the Appellate Tribunal Inland Revenue Appeals-I Karachi to decide the appeal of petitioner within a month on a constitutional petition filed by the Jubilee General Insurance Company Ltd against a show cause notice for recovery of disputed amount issued by Deputy Commissioner Inland Revenue E&C Unit-III, Zone-III LTU, Karachi.
A two-member bench, headed by Justice Aqeel Ahmed Abbasi, heard the constitutional petition.
During the hearing, counsel for petitioner submitted that pursuant to order dated August 27, 2015 passed by the respondents against the petitioner for the tax year 2010, petitioner moved an appeal along with a 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 statutes by approaching the forums of appeal therefore the recovery proceedings initiated by the respondents department under the circumstances are based on mala fide.
Counsel submitted that court may pass any interim relief, after arguments, court disposed of the petition with directions to the respondents not to enforce recovery of impugned demand, which is subject matter of appeal before commissioner appeals-I till its final disposal whereas, in case of any adverse order if passed by the commissioner appeals, the respondents shall not enforce recovery of impugned demand for further period of seven days from the date of receipt of such appellate order.
The SHC also mentioned in its order that “it is expected that the appeals of the petitioner, if not disposed of so far by the Appellate Tribunal Inland Revenue Appeals-I, shall be decided within a period of four weeks from the date of receipt of this order, which may be communicated to it in the counsel for the petitioner within a week”.
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 with the court to restrain them from taking any coercive action till final disposal of its appeals pending before the appellate tribunal.
