Lahore High Court (LHC) has stopped the Regional Tax Office, Faisalabad (RTO) for recovery of tax demand vide order dated June 25, 2019 from a taxpayer, but the Jhang Zone of RTO Faisalabad has passed back dated order for recovering of the illegal tax demand.
It is reliably learnt that a Faisalabad based taxpayer has challenged the show- cause notices issued under Section 122 of the Income Tax Ordinance, 2001 through tax lawyer Waheed Shahzad Butt under constitutional jurisdiction of LHC wherein cognizance has been taken by the LHC and issued interim order vide order dated 25.06.2019 but Jhang Zone of RTO Faisalabad has brushed aside the order of LHC.
When contacted tax lawyer Waheed Shahzad Butt, who represented the petitioner before the LHC, told this correspondence that instance action on the part of Jhang Zone is contempt of LHC order, causing severe mal-administration of justice and ultimate wastage of exchequer resources in futile litigation.
Waheed further alleged that a specific representation to initiate disciplinary action against contemptuous attempt by RTO functionaries has been moved to the head of RTO Faisalabad against ACIR, Unit 07, Toba Tek Singh, Jhang Zone and CIR, Jhang Zone RTO Faisalabad for illegal and targeted treatment with the innocent taxpayer.
The LHC order states, "Learned counsel for the Petitioner contends that the impugned notices dated 12.06.2019 and 21.06.2019, issued by the Respondent No. 3, are illegal having been issued in utter disregard to the provisions contained in Article 13 of the Constitution.
Notices be issued to the Respondents for 20.09.2019 with a direction to file their report and parawise comments within a fortnight. They shall also depute some responsible officer, well conversant with the facts of the case to appear on the next date along with the relevant record. Notice for the above date. Meanwhile, no coercive measures will be adopted against the Petitioner for recovery of the impugned tax demand, till the next date of hearing."
The tax lawyer alleged that quite surprisingly and in utter disregard of order passed by the LHC, tax employee has issued order u/s 122(1) dated 26.06.2019 in back date manually when the said tax employee was physically absent from his office premises (Toba Tek Singh) for the whole day.
Waheed Shahzad Butt further alleged that the said illegal move by ACIR with active connivance of the concerned CIR, is also a serious violation of FBR Circular No.1(177)S(IDT-FATE)/2015 dated 30.06.2015 as same could not be passed without Bar Code from the prescribed FBR system which has been served on 27.06.2019 and a huge patently illegal demand of tax has been created.
This has also been mentioned in the specific representation to the head of RTO Faisalabad, the lawyer observed.
Cited tax employees not only attempted to divert the course of justice by adversely affecting the fountain of rule of law and process of the LHC but also nullify the clearly worded order passed by the LHC, by framing assessment order dated 26.06.2019 without any lawful reason and through an act without lawful jurisdiction recovered the portion of demanded tax, hence committed grave act of Contempt of Court cognizable by the LHC under Contempt of Court Act 2003 / Article 204 of the Constitution, Waheed added.
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