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M/s China Harbour Engineering moves SHC challenging recovery notice

M/s China Harbour Engineering moves SHC challenging recovery notice

KARACHI: M/s China Harbour Engineering Company approached the Sindh High Court (SHC), challenging demand notice of disputed amount of Rs 3.11 billion issued by the Commissioner Inland Revenue Range-B, Audit Zone-II.

Counsel for the petitioner stated in its constitutional petition that the petitioner is a non-resident company and assessed with Large Taxpayers Unit (LTU) Karachi. He argued that on June 26, 2017 the respondent passed an order under section 122 (5A) (14) of the Income Tax Ordinance 2001 for the tax year 2011 creating an alleged tax demand of Rs 3.11 billion and directed the petitioner to deposit the alleged demand within 30 days after receipt of the order.

He informed the court that being aggrieved it moved to appellate forum and filed an appeal along with stay application, which are still pending for final disposal, however, pending of such appeal, petitioner is being threatened by officials of the tax department.

Citing commissioner Inland Revenue Appeals-I, commissioner Large Taxpayer Unit, commissioner Inland Revenue Range-B, Audit Zone-II and deputy commissioner Inland Revenue Range-B, Audit Zone-II as respondents, petitioner pleaded the court to declare that act of the respondents as illegal, mala fide and arbitrary.

He also pleaded the court to direct commissioner Inland Revenue Appeals-I to decide its appeal within reasonable period and till final order of its appeal, direct the officials of the tax department not to take any coercive action against the petitioner.