The Chief Justice of Islamabad High Court (IHC) has directed the Federal Board of Revenue (FBR) to implement a judgment of the IHC in favor of the Pakistan Mobile Communications Limited (Jazz) for collection of estimated advance tax.
In the recent past, the IHC rejected a case framed by the Large Taxpayer Office (LTO) Islamabad against Jazz for collection of advance tax.
Sources told ProPakistani that the Chief Justice of IHC has issued a judgment in favor of Jazz. Sources told ProPakistani that the Chief Justice of IHC has instructed the FBR Chairman to immediately implement the judgment of the IHC.
According to the sources, the mobile phone company is aggrieved of the notices issued by the LTO Islamabad seeking payment of advance tax by way of discarding estimation filed for the purposes of payment of advance tax.
The IHC, in a series of judgments, has held that an estimate filed by the taxpayer for the purposes of advance tax, has to be taken by the tax department verbatim and in case, it turns out to be incorrect, while examining the return filed for that year the same can be modified and appropriate penal action can be taken under section 205 of the Income Tax Ordinance, 2001.
Therefore, the impugned notices of the LTO Islamabad are without lawful authority and, hence are set aside. In case, the returns filed by the petitioner for the tax years in question, are defective and the estimate was wrong, appropriate action can be taken under section 205 of the Income Tax Ordinance, 2001, sources added.
Follow ProPakistani on Google News & scroll through your favourite content faster!
Support independent journalism
If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.