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SHC summons tax authorities on petition filed by M/s Baway Metals Limited

byM.B. Rana
28/03/2017
in Karachi, Latest News
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KARACHI: Sindh High Court (SHC) has directed chief commissioner Inland Revenue, Large Taxpayers Unit-I Karachi to appear in person and to explain why, in-spite of services of repeated court notices, no comments, whatever, have been filed nor any counsel has been engaged to represent the department, particularly, when stay is operating in the matter. The court ordered this on a constitutional petition filed by M/s Baway Metals Limited seeking exemption certificates from income tax on its products.

A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, was hearing the petition.

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During the hearing, no one appear on behalf of the tax department, therefore, the court passed an order and observed that “it is regretted to note that in-spite court order dated 16/02/2017, no one has shown appearance on behalf of the respondents nor any comments have been filed so far, as an indulgence, we are adjourning this matter to March 30, 2017 to be taken up at 11am with direction to chief commissioner IR to appear in person before the court and explain his position”.

Earlier, counsel for the petitioner stated that petitioner is engaged in the business of manufacturing of copper rods/ casting of non-ferrous metals and fulfilling all liabilities regularly as per law, it approached the tax department and filed an application for exemption certificate under section 153 (4) of the Income Tax Ordinance 2001, however, respondents are not considering its application.

Citing Secretary Revenue Division, chief commissioner Inland Revenue Large Taxpayers Unit and commissioner Inland Revenue Zone-III Large Taxpayers Unit as respondents, petitioner pleaded the court may declare that its application is on merit and falls on SRO 586 of 1991, it also pleaded the court may direct them to issue exemption certificate immediately.

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