KARACHI: The Sindh High Court (SHC) has directed the Commissioner Inland Revenue Appeals-IV to decide the appeal of M/s Muhammad Arif Abbas against impugned notice for recovery of Rs 8.8 million within four weeks.
Talking action on a constitutional petition, the court also barred the Tax Department from recovering the money from the petitioner.
A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Arshad Hussain Khan, was hearing the petition.
During the hearing, counsel for the petitioner stated that instant petition can be disposed of in terms of earlier orders passed by this court in a number of similar petitions, whereby the respondents have been restrained from enforcing the recovery of the impugned demand, which is subject matter of appeal before commissioner (appeals), till its final disposal.
After the arguments, the court disposed of the same with directions to the respondents not to enforce recovery of impugned demand, which is subject matter of appeal before commissioner appeals, 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 7 days from the date of receipt of such appellate order.
Court also mentioned in its order that “it is expected that the appeal of the petitioner, if not disposal of so far by the commissioner IR appeals, 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 petition that petitioner is individual registered taxpayer and is distributor/ wholesaler of steel products and paying all liabilities regularly, however, the deputy commissioner Inland Revenue Withholding Unit-12, Zone-V, Regional Tax Office-II passed order under section 161 (1) (a) read with section 205 (3) of the Income Tax Ordinance, 2001 against the petitioner for recovery of Rs 8,819,301. Being aggrieved, it filed an appeal before the commissioner Inland Revenue Appeals-IV along with stay application, which is pending before it, however, respondent again issue notice for enforce recover of said amounts.
Citing Secretary Ministry of Finance, commissioner Inland Revenue Appeals-IV RTO, the deputy commissioner Inland Revenue Unit-II Zone-IV and others as respondents, petitioner pleaded the court may restrain them from taking any coercive action against the petitioner.
