ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-843 of 2021

___________________________________________________________________ Date Order with signature of Judge

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FRESH CASE:

1. For order on CMA No.3448/2021 (Urgent).

2. For order on CMA No.3449/2021 (Exemption).

3. For order on CMA No.3450/2021 (Stay).

4. For hearing of main case.

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1^st February 2021

Mr. Ovais Ali Shah, Advocate for Petitioner.

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1. Urgency granted.

2. Exemption granted, but subject to all just exceptions.

3&4. Learned counsel for petitioner submits that the respondents are proceeding against the petitioner for the recovery of an amount became due pursuant to an order passed under Section 4B of the Income Tax Ordinance, 2001 for the Tax Year 2018, whereas, an amount in excess of the demand created under section 4B of the Income Tax Ordinance, 2001 is already outstanding against the respondents to be refunded to the petitioner. Per learned counsel, petitioner has filed an application for refund of the excess amount, however, respondents have neither issued any refund voucher nor are willing to adjust the amount of refund against the demand being recovered pursuant to an order passed under section 4B of the Income Tax Ordinance, 2001. Learned counsel has referred to the provisions of Section 170(3)(a) of the Income Tax Ordinance, 2001 and submits that the Commissioner is under legal obligation to apply the excess in reduction of any other tax due from the taxpayer under this Ordinance. It has been prayed by the learned counsel that respondents may be restrained from taking any coercive action against the petitioner for the recovery as reflected in notice under section 138(1) of the Income Tax Ordinance, 2001 dated 27.11.2020, which is available at page 115 of instant file.

Let pre-admission notice be issued to the respondents as well as D.A.G, to be served through first three modes, for 19.02.2021, when comments, if any, shall be filed with advance copy to the learned counsel for petitioner. In the meanwhile, the concerned Commissioner may process the application of the petitioner seeking refund in accordance with law. However, till next date of hearing, respondents shall not take any coercive action against the petitioner pursuant to the recovery notice as referred to hereinabove.

J U D G E