Islamabad: Islamabad High Court (IHC) has issued decision against recovery of Rs 1.37 billion by Federal Board of Revenue (FBR) from Pakistan Telecommunication Authority (PTA) under advance tax head.

IHC has issued order in case against deduction of advance tax from PTA

The court directed tax department to decide within two months PTA petition seeking return of advance tax deducted from it.

The court while imposing fine to the tune of Rs 100000 on deputy commissioner land revenue ordered for making its payment to the petitioner within a month.

It is pertinent to mention here tax department had deducted Rs 1.37 billion from PTA in 2018. PTA filed petition against it.

Justice Babar Sattar of IHC issued detailed decision on PTI petition.

It said that according to the petitioner tax department re-determined advance tax. Tax department deducted amount from bank without issuing notice.

The court maintained in its decision that as per income tax ordinance, serving notice to income tax payer is must. The proceedings initiated without pursuing process runs contrary to basic rights of the petitioner.

According to counsel for the petitioner he filed petition seeking return of additional amount deducted from them. Commissioner in land revenue has to give decision within 2 months on petition as per law. Commissioner did not give decision on PTA petition despite lapse of two months.

IHC ordered that the petition seeking return of additional tax be decided within two months after decision of this court.