“Deal Fairly With Tax-Payers,” SC Orders FBR

Web Desk — While dismissing an appeal by the Federal Bureau of Revenue (FBR) against the Sindh High Court (SHC) order, the Supreme Court has urged the FBR to behave fairly and adhere to the law in dealing with taxpayers.

According to Justice Qazi Faez Isa, he wrote in the judgment, the tax department must not withhold any benefits that taxpayers receive under the law, in order to ensure that time and resources do not get wasted by the assessee department.

Frivolous litigation wastes the time of the tribunal, the high court, and the apex court, which could be better used in resolving legitimate disputes.

A two-judge SC bench comprising Justice Isa and Justice Yahya Afridi made the observations while considering an appeal filed by the Commissioner Inland Revenue (CIR) Karachi challenging the Nov 5, 2020 order of the Sindh High Court (SHC).

It was reflected in the judgment that on the last date of hearing, the SC had ordered the CIR to present the show-cause notice issued against the Messrs Packages Limited, through which the entire process was re-initiated and the show-cause notice of May 23, 2011 was filed, showing that it was issued under Section 66-A read with Section 66 of the Income Tax Ordinance (ITO) 1979 for the assessment year 1997-98.

The judgement said that the department could not have initiated action under Section 66-A after four years. “Therefore, leave to appeal is declined and, consequently, this petition is dismissed with costs in the sum of Rs20,000.”