ISLAMABAD: Large Taxpayer Office (LTO) Islamabad has refunded an amount of Rs 2 billion to the Islamabad Electric Supply Company (IESCO) due to intervention of the Islamabad High Court (IHC).
It is reliably learnt that the development took place solely due to strict intervention by the IHC, and LTO Islamabad has returned Rs2 billion to the IESCO out of tax recovered from attachment of bank accounts of IESCO. The case has been fixed for January 18, 2024 before the IHC.
The tax recovered without following due process of law has been returned to the power distribution company.
When contacted tax lawyer Waheed Shahzad Butt told this correspondent that on the same issue, Federal Tax Ombudsman (FTO) Dr Asif Jah has also summoned Member (Operations) FBR for not responding to specific queries regarding instructions issued by the FBR for attachment of bank accounts of power distribution companies for tax recovery by field formations without obtaining approval from Member FBR.
Waheed Butt further added that IHC has also summoned Member (Legal) FBR to appear in person before IHC, for violation of the order passed by IHC in tax recovery matters, by the field formations, specifically LTO, Islamabad.
The Petitioner IESCO stated that the high handedness by the department (LTO Islamabad) over a period of time has almost resulted in the collapse of the IESCO economic activity. The respondents (LTO) in order to meet their revenue targets have targeted the petitioner. In order to achieve their revenue target they even paid no heed to the orders of the court.
Earlier, a cost Rs.25,000 was also imposed on FBR’s failure to file a response in compliance with the IHC order, payable by the FBR to the IESCO, however, on November 23, 2023 the same has been recalled on the application made by the respondent/ FBR/ LTO, Waheed added.
IHC order stated, “Let the counsel for the petitioner seek instructions from the petitioner as to whether the amounts that form the subject-matter of the petition have been refunded.
The counsel for the respondents submits that an amount of Rs.2 billion has already been refunded against the total claim of Rs.3 billion on behalf of the petitioner. He stated that the tax department is willing to consider the refund and a demand and settle the accounts.
“Let the CFO of IESCO hold a meeting with Deputy Commissioner-IR, regarding the refund to see if the matter can be settled. After the convening such meeting the petitioner as well as respondent (DCIR) will file a report as to what transpired in such meeting. Let the matter be fixed for January 18, 2024,” IHC order added.
Copyright Business Recorder, 2023
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