LAHORE: A taxpayer has challenged a show-cause notice issued by the Punjab Revenue Authority (PRA) for the alleged failure of the taxpayer to pay due tax that the taxpayer argued was wrongly invoked under Section 52, when Section 14 was the appropriate provision.
According to the taxpayer, Section 14 of the Act should have been invoked instead of Section 52 as his role was that of a withholding agent not a direct taxpayer. He requested the relevant appellate forum to set aside the show cause notice, asserting that the issuance of the notice was legally flawed.
The Authority, on the other hand, noted that the notice was relied on Section 52 of the Act, which relates to tax recovery procedures after non-payment or short-payment. But the taxpayer contended that his case fell under Section 14 of the Act, which governs withholding agents as opposed to Section 52 which addresses penalties and tax recovery mechanisms.
The appellate forum examined Section 52 which deals with the recovery of short or non-levied taxes and penalties. In contrast, Section 14 outlines procedures related to withholding agents and the special tax collection procedures.
The appellate forum ruled in favour of the taxpayer, acknowledging the validity of the taxpayer’s argument that Section 14 should have been invoked instead of Section 52. It set aside the show cause notice, citing the principles of fair trial and due process. It directed the Authority to reconsider the matter, while treating the complaint as a representation and issue a decision in accordance with the relevant provisions of Sections 14 and 14A of the Act, after providing a fair hearing within four weeks from the receipt of the certified copy of this order.
It may be noted that Punjab Revenue Authority is being criticised by many taxpayers for issuing irrational notices, causing harassment and undue hassle to deal with such notices. They said these notices increase their problems for engaging tax consultants against heavy fees besides waste of time. However, sources from the Authority have dispelled any such impression, saying that the taxpayers are being facilitated utmost while accepting procedural hiccups in approaching them.
Copyright Business Recorder, 2025
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