KARACHI: The Sindh High Court (SHC) has suspended an impugned demand notice for recovery of Rs 4,431,000 in respect of income tax from the petitioner until the next date of hearing. The court took this action on a constitutional petition filed by M/s Master Management (Private) Limited against demand notice issued by the deputy commissioner Inland Revenue Unit-II Corporate Regional Tax Office.
During the hearing of petition, a two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, also issued notices to the tax authorities and the deputy attorney general, directing them to file their respective para wise comments on the next date of hearing.
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Earlier, counsel for the petitioner stated that petitioner is a private limited company and is engaged in the business of hotels and paying all liabilities regularly. However, the deputy commissioner Inland Revenue Unit-II Corporate Regional Tax Office issued a show cause notice to the petitioner and demanded Rs 4,431,000 under section 138 (1) of the income tax ordinance illegally.
Citing chairman Federal Board of Revenue, Secretary Revenue Division, commissioner Inland Revenue Zone-II, Corporate Regional Tax Office and deputy commissioner Inland Revenue Unit-II Corporate Regional Tax Office as respondents, it pleaded the court may declare that act of the respondents is illegal, mala fide and arbitrary, counsel also pleaded the court to set aside impugned demand notice.
