KARACHI: The Sindh High Court (SHC) has dismissed an application filed by commissioner Inland Revenue Zone-1 LTU-II, Income Tax Office Karachi against impugned judgment of the appellate tribunal over recovery of Rs 3,700,590 in respect of income tax from Al Hamd Flour Mills (Private) Limited.
A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, was hearing the reference application.
During the hearing, the lawyers from both sides completed their arguments and after the arguments, court dismissed the reference application with directions that,
“We are of the opinion that the order passed by the appellate tribunal does not suffer from any error or illegality, whereas, the question proposed herein above has been dealt with strictly in accordance with law. Court also observed in its order that we do not find any substance in the instant reference application which is accordingly disposed along with listed application and answer the question proposed the affirmative, against the applicant and a favour of the respondent”.
Earlier, counsel for the applicant stated that tax department issued show cause notice to the taxpayer (Al Hamd Flour Mills (Private) Limited) for recovery of Rs 3, 700, 590 in respect of income tax, however, being aggrieved, it approached the appellate tribunal and filed appeal against such show cause notice which was allowed without showing any lawful reason.
Citing Al Hamd Flour Mills Pvt Ltd as respondent, applicant pleaded the court may declare that order of the appellate tribunal is illegal and without lawful reason and court also may set side impugned order of the appellate tribunal.
