KARACHI: The Sindh High Court (SHC) continued the interim order, staying the Federal Board of Revenue from recovery of Rs 16.748 million from the City District Government Karachi (CDGK) till next date of hearing.
A two-member bench, comprising Justice Munib Akhter and justice Abdul Malik Gaddi, was hearing the petition filed by CDGK against the impugned demand notice of Rs 16,748,844 for the tax year 2015, issued by tax authorities.
During the hearing, counsel for the respondents requested for adjournment. The court adjourned the hearing and continued the interim order according to which it had stayed on impugned recovery proceedings.
Earlier, the petitioner’s counsel stated that petitioner filed its income tax return with the income tax department regularly. However, respondents issued a show cause notice to the petitioner raising the tax liability of Rs 16,748,844 for the tax year 2015.
According to the petitioner, it filed an appeal and stay application before the authority concerned on February 22, 2016 but it did not take any notice on the stay application. However, the tax authorities issued a notice for recovery of the said amount.
Citing FBR chairman, Regional Tax Office (RTO-III) Inland Revenue (IR) chief commissioner, IR Appeals commissioner and the IR Withholding Tax commissioner as the respondents, the CDGK requested the court to set aside impugned notice and restrain the respondents from taking recovery of impugned demand.
