The Lahore High Court (LHC) here on Monday hearing appeals of Sharif family against notices of tax department for tax evasion asked its counsel to provide details legal heirs of Muhammad Sharif (late) on next hearing to be fixed by office.
The court observed that Muhammad Sharif, father of Sharif brothers, had also filed appeal but since he had been died, details of his legal heirs should be submitted in the court.
The appeals were filed by Mian Nawaz Sharif and his wife Kalsoom Nawaz, Mian Shahbaz Sharif and his wife Nusrat Shahbaz, Hamza Shahbaz, Mian Tariq Shafi and Mian Javaid Shafi. The accused Sharif family of evading tax of Rs 650 million during years 1990 to 2000 and also imposed penalty on them.
Malik Tariq Aziz, counsel for Sharif family submitted that about Nawaz Sharif case that the tax department never disclosed as to what amount of tax was due from him and it was a vague notice, which did not have legal sanctity. He said the order of income tax commissioner was repugnant and inconsistent with section 3 & 4 of Wealth Tax Act 1963 which states that no penalty or additional tax can be imposed during the pendency of appeal. And the appeals of the petitioners were pending for the last seven years.
He said Kalsoom Nawaz and Shahbaz had paid the income tax during the stipulated time and no objection was raised against it at that time. Counsel said the notices were issued to petitioners after year 2000 and the objection about the tax assessment was raised about 1213 days instead of the normal 60 days required period.
He further said that the re-opening of the case was illegal, as the tax department already accepted the tax and now it could not raise any objection. He said the show cause notice was not issued to the petitioners, which were necessary before taking any action. Malik pleaded that the notice was violation of the section 177 of Income Tax Ordinance and requested the court to declare the assessment made by the department after such a delay as illegal.