The Islamabad High Court (IHC) has approved a petition filed by the Pakistan Telecommunication Authority (PTA) against the Federal Board of Revenue (FBR) concerning the deduction of Rs1.37 billion in advance tax.
The court ordered the tax department to decide on the PTA's request for the return of excess tax within two months. According to a written verdict penned by Justice Babar Sattar, the court also imposed a fine of Rs100,000 on the deputy commissioner inland revenue, directing that the amount be paid to the petitioner within one month.
The PTA had filed the petition in 2018, challenging the tax department's deduction of Rs1.37 billion. According to the decision, the petitioner argued that the tax department recalculated the advance tax without issuing any notice and directly deducted the amount from the bank.
As per the Income Tax Ordinance, 2001, taxpayers must be notified before any such action is taken. The court noted that the department's action, without following due process, violated the petitioner's fundamental rights.
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