KARACHI: The Sindh High Court (SHC) on Tuesday directed the Karachi Inland Revenue not to take any coercive measures against Sajid Textile Industries Private Limited for the recovery of impugned demand in respect of Workers Welfare Fund (WWF).
A single judge comprising Justice Munib Akhter heard the case and also issued notices to the respondents as well as Pakistan deputy attorney general April 11, 2016.
The counsel for the petitioner Sajid Textile stated that an IR officer issued online show cause notice to the petitioner for the tax year 2015 on March 13, 2016 under Sub-Section (4) of Section 4 Workers Welfare Fund Ordinance, 1971 read/ with Section 221 (2) of the Income Tax Ordinance, 2001. The counsel added that a demand of Rs 1.373 million was made by charging WWF at rate of 2 percent, adding that this is completely without jurisdiction unlawful, mala fide, and illegal.
The counsel also referred a full bench judgment of this court stating that “it has been declared and held that the contribution of WWF is a tax on the “income of industrial establishment,”: the 1971 ordinance is a federal status but the 4” schedule to the constitution which prescribed the federal legislative list does not contain an entry which authorized a having for the tax in income of industrial establishment.”
The petitioner asked the SHC to declare section of the Finance Act 2006, and 5, 8 of the Finance Act 2008, as illegal. The court was further requested by the petitioner to restrain respondents from taking any action against whatsoever.
