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SHC bars tax authorities from taking action against M/s Larkhra Power Generation Company

SHC bars tax authorities from taking action against M/s Larkhra Power Generation Company

KARACHI: The Sindh high Court (SHC) has restrained the tax authorities from taking any coercive action against M/s Larkhra Power Generation Company (Private) Limited.

A two-member bench, headed by Justice Aqeel Ahmed Abbasi took this action on a constitutional petition filed by the company against an income tax recovery notice issued by the Inland Revenue Officer Withholding Zone Unit-VI.

The court issued notice to the tax authorities and deputy attorney general, directing them to file their respective comments on the next date of hearing.

During the hearing, counsel for the petitioner argued that petitioner has already filed an appeal along with the assessment order passed by Inland Revenue Officer Withholding Zone Unit-VI along with a stay application which is pending before commissioner Inland Revenue (Appeals) but during pendency of its appeal, the Inland Revenue Officer Withholding Zone Unit-VI initiated recovery proceedings vide a notice on December 13, 2016.

The counsel further argued that the assessment order passed by the Inland Revenue Officer Withholding Zone Unit-VI is illegal as the same is based on assumption and presumptions. He stated that the commissioner Inland Revenue (Appeals) is reluctant to pass any order on the application filed by the petitioner along with an appeal for interim relief and there is apprehension that the respondent will start coercive action for the recovery of said demand notice.

Citing chairman Federal Board of Revenue, Inland Revenue Officer Withholding Zone Unit-VI and commissioner Inland Revenue (Appeals) as respondents, the petitioner pleaded the court to set aside the impugned recovery notice and restrain them from taking any coercive action against the petitioner.