Violation of stay order: Taxpayer moves LHC for contempt proceedings against Lahore CTO

ISLAMABAD: An aggrieved taxpayer has moved the Lahore High Court (LHC) for contempt of court proceedings against the Corporate Tax Office, Lahore for violating the stay order issued by the LHC against the encashment of bank guarantees of the Pakistan Railways.

The taxpayer has approached the LHC for initiation of the contempt of court proceedings against the Chief Commissioner Inland Revenue, Corporate Tax Office, Lahore, and the Deputy Commissioner Enforcement-II, CTO, Lahore.

The Federal Board of Revenue (FBR) Counsel has sought time from the LHC to obtain instructions from the Chief Commissioner CTO, Lahore.

It is reliably learnt that Syed Jamil and Company has moved a contempt of court petition before the LHC against the CTO Lahore tax functionaries for allegedly delaying the refund of income tax in the shape of bank guarantees earlier-en-cashed to show performance by some other CTO employees.

When contacted, Nauman Shabbir Manj, advocate/ACMA, the company secretary of the petitioner, Syed Jamil and Company, told this correspondent that the notice has been issued by a single bench comprising Justice Shahid Jamil Khan, while hearing a contempt of court petition seeking contempt proceedings against the tax employees posted at the CTO, Lahore including the Chief Commissioner Inland Revenue for violating the court’s earlier order dated 26.04.2022.

The LHC took exception to the violation of its order and observed in the following manner:“This petition is for initiation of contempt proceeding against the respondents for alleged defiance of order dated 26.04.2022 passed in Writ Petition No. 25814 of 2022, granting interim relief, which is reproduced hereunder:“Notice for the above date. In the interest of justice, respondents are restrained from encasing the bank guarantee till the date of hearing. However, this order shall cease to exist, if not specifically extended”.

The learned counsel submits that notices for recovery have been issued. The learned counsel for the respondents, on the court’s call, seeks time to obtain instructions. Let the petition be listed along with the main writ petition, the LHC ordered.

Copyright Business Recorder, 2022