SHC suspends six demand notices by Income Tax department |

SHC suspends six demand notices by Income Tax department

KARACHI: A division bench of High Court of Sindh (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice Mrs Ashraf Jahan on Monday suspended six identical demand notices for recovery of tax. Asif & Company and five other petitioners moved the court against the notices in which demand of rupees 1000000 each was raised. The notices said that they have imported granite marble six months back and filed tax declaring the imported goods under PCT heading 2156 while PCT applicable was 6813. The PCT heading 6813 carries Regulatory Duty (RD) at a rate of 20 per cent applicable to polished stones. Haider Shaikh advocate appearing for the petitioners including Asif & Company submitted that consignments were released four months back and now were "out of charge" after a physical inspection by the assessing officers. The counsel told the bench that notices were issued without completing the adjudicating procedure and Deputy Collector, Income Tax has no jurisdiction to issue demand notices. The bench suspending the notices adjourned further proceedings.
What is your view on this ? Let us know in the comments section