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M/s 10Pearls moves SHC against issuance of show cause notice for recovery

M/s 10Pearls moves SHC against issuance of show cause notice for recovery

KARACHI: M/s 10Pearls approached the Sindh High Court (SHC) against show cause notice and issuing of notice for recovery of Rs35,046,747 for tax year 2016-2017.

On January 8, 2019, counsel for the petitioner stated in his petition that petitioner is a registered company of Pakistan Software Export Board (PSEB) and Pakistan Software House Association (PASHA) having business relations in Washington DC, San Francisco, Toronto, Karachi, Dubai and Cebu, the petitioner is responsible for developing, designing and launching innovative digital software products.

He submitted that instant petition arises from an erroneous malafide and serious proceedings initiated by the additional commissioner Inland Revenue, Audit Range-II, Zone-IV RTO Corporate Karachi which has culminated in a notice of recovery that listed the demand of Rs35,046,747 for the tax year 2016-17 as payable by the petitioner.

He argued that petitioner is aggrieved and seriously prejudiced by the proceedings, and has filed a relevant appeal before the CIR, Appeals-III, in summary it is the case of the petitioner that they have been assessed without any basis and as such their exempt status as an information technology service exporter has been disregarded, furthermore, separate heads of account and expenses have been wrongly computed by the said respondent.

Citing chairman Federal Board of Revenue, CIR Appeals-III and Additional CIR, Audit Range-II Zone-IV as respondents, petitioner pleaded the court to declare that no demand or recovery of tax can be made or enforced by the officers of respondents prior to the final adjudication by at least one independent judicial forum outside the hierarchy of department.

Petitioner also pleaded the court may restrain them from any coercive action against the plaintiff or for recovery of the said amount.