KARACHI: The Sindh High Court (SHC) has restrained the tax department from taking any coercive action against Muhammad Ahsan, proprietor of M/s Ahsan Enterprises.
The court ordered this on a constitutional petition filed by Muhammad Ahsan, against attachment of its bank accounts for impugned demand.
While the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also issued notices to the tax department and deputy attorney, directing them to file their respective comments on the next date of hearing.
During the hearing, counsel for the petitioner stated that in the absence of any lawful demand in existence pursuant to order passed by CIR Appeals-II Karachi on July 25, 2014, whereby, matter was remanded to the departmental authority to decide the matter afresh, the respondents issued notice to the bank of the petitioner for attachment of his accounts.
The counsel argued that the petitioner is engaged in the business of import and export and paying all liabilities regularly, however, a show cause notice was issued under section 11 (2) alleging to claim an inadmissible input tax on purchase pertaining to tax period November 2009 and Feb 2010.
Being aggrieved he filed an appeal before the appellate tribunal along with stay application, which is pending for disposal, however, respondent issued show cause notice for unlawfully attachment the various bank amounts of the petitioner.
Citing Chairman Federal Board of Revenue, Commissioner Inland Revenue Zone-II Regional Tax Office-II, Assistant Commissioner Inland Revenue Unit-III Region D, Zone-II RTO-III Karachi and other as respondents, petitioner pleaded the court may restrain the respondents form enforce recovery and attachment of bank accounts.