KARACHI: The Sindh High Court (SHC) restrained the Tax Department from enforcing recovery till the next date of hearing on a constitutional petition filed by M/s Alakh Cotton Ginning Pressing Factory & Oil Mills.
Hearing of the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, also pre-admitted notices to the tax department and deputy attorney general of Pakistan directing them to file their respective para-wise comments on the next date of hearing. The court adjourned the hearing for April 13, 2017.
During the hearing, counsel for the petitioner submitted that he, pursuant to order under Section 122 (5A) of the Income Tax Ordinance-2001 for the tax year 2011, has preferred an appeal with a stay application before commissioner IR RTO Hyderabad which is pending. During the pendency of such appeal, officials of the tax department issued notice under Section 138 (1) of the Income Tax Ordinance-2001 to the petitioner for recovery of disputed amount.
He further submitted that a taxpayer, if aggrieved by an order passed by the authority concerned is entitled to seek remedy at least before one independent forum provided under the constitution therefore recovery proceedings under the circumstances are based on mala fide.
Citing Chief Commissioner IR Regional Tax Office RTO Hyderabad, Commissioner IR Appeals, Additional Commissioner IR Zone-II and others as respondents, petitioner pleaded with the court to restrain them till final decision of its appeal pending before the Commissioner IR Appeals.
