KARACHI: The Sindh High Court (SHC) has suspended the operation of impugned show cause notice for recovery of income support levy tax issued by the deputy commissioner Inland Revenue Audit Unit-II Audit Range-A Zone-III Large Taxpayer Unit. The court ordered this on a constitutional petition filed by A. Aziz H. Ebrahim, Director of Balochistan Poly Products (Private) Limited.
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 deputy attorney general and directing them to file their respective comments on the next date of hearing. The court also adjourned the hearing for March 9, 2017.
Earlier, counsel for the petitioner stated that petitioner is an individual and director of Balochistan Poly Products (Private) Limited and regular taxpayer under the income tax ordinance 2001. However, the deputy commissioner Inland Revenue Audit Unit-II Audit Range-A Zone-III Large Taxpayer Unit issued a show cause notice to the petitioner under section of income support levy act 2013 dated 12/01/2017 wanting income support levy in the sum of Rs 65,000 without showing any lawful reason.
He further argued that said respondent has no such power to demand such income support levy tax from the petitioner.
Citing Secretary Ministry of Law, the commissioner Inland Revenue Zone-III Large Taxpayer Unit and deputy commissioner Inland Revenue Audit Unit-II Audit Range-A Zone-III Large Taxpayer Unit as respondents, petitioner pleaded the court may declare that act of the respondents is illegal, mala fide and arbitrary.
Taxpayer also pleaded the court may set aside impugned demand notice and restrain them from taking any coercive action against the petitioner.
