KARACHI: The Sindh High Court (SHC) has directed the parties to come prepared for final arguments on a constitutional petition filed by M/s Regent Services (Private) Limited against impugned demand notice of Rs 372,127,716/- issued by officer Inland Revenue Enforcement and Collection Unit -05.
A two-member bench, comprising Justice Aqeel Ahmed Abbasi, was hearing the petition. During the hearing, the court heard arguments of the parties and adjourned the matter for May 11, 2017. The court observed in its order that the case will be finally heard and disposed of on the next date of hearing. The court also continued interim order till the next date of hearing.
It needs to be mentioned here that court had suspended the impugned demand notices which were sent to the bank for recovery of disputed tax from the petitioner’s accounts.
Earlier petitioner’s counsel stated that for the tax year 2014, petitioner filed its return of income on February 16th, 2016, In the return, the petitioner inter alia declared capital gains amounting to Rs890,169,978/- on sale of immovable property, which was not taxable as the holding period of the asset exceeded two years.
According to the petitioner, however, on erroneous presumption of facts and law additional commissioner Inland Revenue Audit division -I, range B, Zone – I, RTO – II issued a show cause notice dated March 10th,2016 alleged non-reporting of interest income and workers welfare fund and an aggregate demand of Rs. 372,127,716/- was raised. Therefore petitioner filed an appeal before the Commissioner Inland Revenue (appeals-IV) which is pending, but officials of the respondents issued notices to the bank’s manager for recovery of said amount.
Citing Chairman FBR, additional commissioner Inland Revenue Audit division – I, range B, Zone-I, RTO-II, Officer Inland Revenue Enforcement & Collection Unit – 05, Commissioner Inland Revenue (Appeals-IV) as respondents petitioner pleaded the SHC may restrain the respondents from taking any coercive action against the petitioner and also set aside impugned demand notice .
