Islamabad High Court Orders PTA Tax Refund and Imposes Fine on Inland Revenue Commissioner
In a significant ruling, the Islamabad High Court has directed the Federal Board of Revenue (FBR) to refund the excess advance tax deducted from the Pakistan Telecommunication Authority (PTA) in 2018. The decision, made by Justice Babar Sattar, came after a prolonged delay in addressing the PTA’s request for the return of the sum of 1.37 billion rupees.
The PTA had challenged the tax department’s action, claiming that the money was wrongly deducted as advance tax without proper notice or consultation. According to the Income Tax Ordinance, taxpayers must be issued a notice before any deduction of taxes. The court ruled that this procedure was not followed, and the tax department’s action violated the PTA’s basic rights.
Justice Sattar also highlighted that the Inland Revenue Commissioner failed to make a decision within the two-month time frame specified by law. As a result, the court imposed a fine of 100,000 rupees on the Deputy Commissioner of Inland Revenue and ordered the immediate payment of the refund.
The court’s ruling was a win for PTA, which has long argued that the tax deducted from its account was unjustified. The decision is expected to set a precedent for future cases involving improper tax deductions by the government.
Key Takeaways:
- The Islamabad High Court directed FBR to refund the excess tax collected from PTA.
- A fine was imposed on the Inland Revenue Commissioner for the delay in processing the request.
- The ruling emphasizes the importance of following legal procedures in tax collection.
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