KARACHI: The Sindh High Court (SHC) has sought comments from the tax authorities on a petition filed by Loreal Pakistan Limited against impugned notice for selection of petitioner for audit by commissioner Inland Revenue Regional Tax Office-II Zone–II.
A two-member bench, comprising Justice Nadeem Akhtar and Justice Muhammad Faisal Kamal, heard the petition.
During the hearing, the counsel for the respondents requested for some time to submit its comments. The court continued interim order till next date and adjourned the hearing for date which would be announced according to the roster. In last hearing, court had restrained the respondents from taking any coercive action against the petitioner.
Earlier counsel for the petitioner stated that petitioner’s company name is an internationally recognized name in the field of cosmetics, hairs care products, toiletries and contained to develop new products. It received a notice from the commissioner Inland Revenue, informing the petitioner that the case of the petitioner had been selected for audit for the period from January 1,2014 to December 31,2014.
Therefore, the petitioner was directed to produce various documents including the list of monthly sales tax returns deposited by the petitioner. The counsel said that commissioner Inland Revenue does not have power to select a person for audit and can only conduct an audit once the mechanism provided under section 72 B of the Act 1990 has been completed.
Citing secretary Ministry of Finance, Member Legal FBR, Commissioner Inland Revenue, Regional Tax Office – II, Zone – II as respondents petitioner pleaded the SHC may set aside impugned notice and restrain the respondents from taking any coercive measures against it.
