ISLAMABAD: Punjab Revenue Authority (PRA) Tribunal has taken judicial notice of illegal housing schemes being executed without taking approval from the concerned development and local authorities and those which have not been registered with the PRA for paying provincial sales tax on services as developer/builder.
While disposing of an appeal of a real estate developer, the Tribunal observed, “It has come to notice of this Tribunal that a significant rather countless number of housing societies in the Punjab are operating without compulsory registration, thereby evading sales tax on services and undermining the integrity of the tax system.”
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The Tribunal further observed that “the failure of these societies to comply with compulsory registered requirements poses a serious threat to the enforcement of tax laws and the fair collection of public revenues causing heavy loss to government exchequer.”
With this observation the Tribunal Bench comprising Bakht Fakhar Bahzad Chairperson and Raza Ashfaq Sheikh Accountant Member commanded the chairman PRA to undertake an immediate and exhaustive review of all the housing societies in Punjab and has directed to ensure that all unregistered housing societies are promptly identified and subjected to compulsory registration without any delay.
The Tribunal has issued directive to relevant authorities as well. All Deputy Commissioners, Chief Executive Officers of Metropolitan Corporation /Municipal corporations working in Punjab are hereby ordered to compile and submit a comprehensive and detailed report listing all housing societies within its jurisdiction, explicitly identifying those that are operating without required NOCs. The Tribunal has directed all the above officials to appear personally before the Tribunal with report.
The Tribunal has lastly observed that “any failure to comply with this judgement will result in severe legal repercussions and this Tribunal will not tolerate any obstruction, delay, or evasion of justice.”
When contacted for comments regarding the legal mandate and jurisdiction of the PRA Tribunal to pass such orders Sukaina Tehreem Advocate, a Lahore based tax lawyer observed that as per section 67(1) of the 2012 Act the Tribunal can call for record in a pending appeal or can conduct inquiry through PRA officers in deciding that very appeal. Sukaina observed that though there is no express power to pass such order yet the Superior Courts of Pakistan have laid down the principle that the Tribunal has inherent power to pass any interim order as well which is warranted in the facts and circumstances of the case.
Copyright Business Recorder, 2024
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