Islamabad, Dec 30: The Islamabad High Court (IHC) has ruled in favor of the Pakistan Telecommunication Authority (PTA) in a case against the Federal Board of Revenue (FBR), regarding the deduction of Rs. 1.37 billion as advance tax without prior notice. Justice Babar Sattar, presiding over the case, directed the FBR to address PTA’s request for a refund of the excess tax amount within two months.
The dispute dates back to 2018, when the FBR deducted Rs. 1.37 billion from PTA’s bank account as advance tax. The deduction was made without issuing the mandatory prior notice, which is required under the Income Tax Ordinance.
The court noted that the action taken by FBR violated PTA’s fundamental rights by failing to follow due process. In response, PTA filed an application for the refund of the excess amount, but the Commissioner Inland Revenue failed to act on the request within the legally required timeframe.
In addition to instructing FBR to resolve the matter, the IHC imposed a fine of Rs. 100,000 on the Commissioner Inland Revenue, which must be paid to PTA within one month. Justice Sattar emphasized the necessity of issuing notices to taxpayers before deductions and urged FBR to follow legal procedures to ensure the matter is resolved within the stipulated timeline.
