KARACHI: The Sindh High Court (SHC) has directed commissioner Inland Revenue Appeals-I to decide the appeal of the petitioner within four weeks.
A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, ordered this on a constitutional petition filed by Jubilee Life Insurance Company Limited against impugned show cause notice for recovery of Rs 100,417,433 issued by additional commissioner Inland Revenue Audit Range B, Zone-III Large Taxpayers Unit, and seeking directions for disposal of its appeal pending before commissioner Inland Revenue Appeals-I, Audit Range B, Large Taxpayer Unit.
After the hearing, the court disposed of the constitutional 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 a further period of 7 days from the date of receipt of such appellate order.
Court also mentioned in its order that “it is expected that the appeals of the petitioner, if not disposal of so far by the commissioner IR 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 one week”.
Earlier, counsel for the petitioner stated in its constitutional petition that petitioner is engaged in life insurance, carry on non-participating business, he submitted that petitioner is fulfilling all liabilities regularly however, additional commissioner Inland Revenue Audit Range B, Zone-III Large Taxpayer Unit issued a show cause notice to the petitioner alleged that the petitioner’s assessment for tax year 2014 was erroneous insofar as it was prejudicial to the interest of revenue.
He argued that petitioner filed comments in details and explained its position, however, additional commissioner Inland Revenue Audit Range B, Zone-III Large Taxpayer Unit denied the claim of petitioner and demanded of Rs100,417, 433. Being aggrieved it approached commissioner Inland Revenue Appeals-I and filed an appeal along with stay application which is still pending before the same which has failed to decide the appeal within reasonable period, in absence of stay order, petitioner has apprehension of coercive action from respondents.
Citing Secretary Revenue Division, the commissioner Inland Revenue Appeals-I, Audit Range B, Large Taxpayer Unit and additional commissioner Inland Revenue Audit Range B, Zone-III Large Taxpayer Unit as respondents, petitioner pleaded the court to direct the commissioner Inland Revenue Appeals-I to decide appeal of the petitioner within reasonable period and till final decision of its appeal, court may restrain them from taking any coercive measures against it.
