LHC suspends notice for audit of Jahangir Tareen's sugar mills
Tareen's counsel says FBR no longer empowered to do audit of mills after lapse of five-year period in September 2020
- LHC suspends operation of notice by FBR for audit of Jahangir Tareen's sugar mills.
- Tareen's counsel says FBR no longer empowered to do audit of mills after lapse of five year period in September 2020.
- Court issues notices and seeks replies from the FBR chairman and other respondents.
LAHORE: The Lahore High Court (LHC) on Tuesday suspended operation of a notice by the Federal Board of Revenue (FBR) for an audit of JDW Sugar Mills owned by PTI politician and industrialist Jahangir Khan Tareen.
Justice Raheel Kamran passed the orders on a petition filed by the JDW Sugar Mills, challenging FBR's notice for its audit of the 2015 period.
The petitioner's counsel argued before the court that the mill was a big taxpayer and it regularly paid taxes.
He submitted that the FBR's audit commissioner had on May 21 issued a notice to the mills for an audit of the 2015 period and sought various documents and records.
He further submitted that as per law, the FBR was not empowered to audit any business institution after the passage of a five-year period.
The counsel said that the respondent was empowered to hold an audit of the mills for the 2015 period till September 30, 2020, but now the period had expired.
He said that the notice was not only illegal but also based on malafide.
He contended that the notice was in violation of Section 122 and 174 of Tax Ordinance.
Tareen's lawyer pleaded with the court to set aside the illegal notice and also suspend its operation till the final decision of the petition.
The court, after recording initial arguments, ordered the notice suspended till further orders.
The court also issued notices and sought replies from the FBR chairman and other respondents.