ISLAMABAD: The Islamabad High Court (IHC) on Monday accepted the petition of the Pakistan Telecommunication Authority (PTA) against a deduction of an extra amount by the Federal Board of Revenue in line with advance tax.
IHC’s Justice Babar Sattar issued the detailed order on the petition of PTA, which was filed in 2018 against the decision for the deduction of Rs1.37 billion as advance tax.
The court also imposed a fine worth Rs100,000 on the deputy commissioner of Inland Revenue and instructed him to pay the amount to the petitioner within one month.
The court said that the petitioner stated that the FBR assessed the advance tax again. The PTA stated that the tax department deducted the amount from the bank account without serving prior notice. The high court said that it is essential to serve notice to the taxpayer as per the income tax ordinance.
The court said that the action without following due process is the violation of the fundamental rights of the petitioner.
It said that the PTA applied to the department against the cutting of the extra amount. The commissioner of Inland Revenue was bound to decide on the petition within two months but the matter was not concluded within the said period.
The court directed the FBR to decide within two months on the application after the issuance of this verdict.
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