ISLAMABAD: Lahore High Court has suspended the operation of the Federal Board of Revenue (FBR) order on the general condonation of limitation under Section 214A of the Income Tax Ordinance, 2001; Section 74 of the Sales Tax Act, 1990 and Section 43 of the Federal Excise Act, 2005 which were extended up to December 31, 2020.

It is learnt that the letter bearing # 3(22)S(IR-Operations)/2020 dated June 30, 2020 issued by the Secretary (IR-Operations), Federal Board of Revenue, Islamabad whereby general condonation of limitation u/s 214A of the Income Tax Ordinance, 2001; Section 74 of the Sales Tax Act, 1990 and Section 43 of the Federal Excise Act, 2005 was extended upto 31-12-2020, was challenged before the Lahore High Court at Lahore in writ jurisdiction.

The writ petition was fixed for hearing on August 19, 2020 before Justice Jawad Hassan of the LHC. The LHC has issued notices to the Respondents (federal government, Federal Board of Revenue, RTO Sargodha) and meanwhile suspended the operation of the proceedings initiated/continued for the Tax Year-2014 beyond the limitation by the Taxation Officer.

Copyright Business Recorder, 2020