The Islamabad High Court (IHC) has sided with the Pakistan Telecommunication Authority (PTA) in its case against the Federal Board of Revenue (FBR) over a disputed advance tax deduction of Rs. 1.37 billion.
Justice Babar Sattar directed the FBR to process PTA’s refund claim within two months. The case stems from a 2018 incident where the FBR deducted the amount from PTA’s bank account without issuing the mandatory prior notice, violating provisions of the Income Tax Ordinance.
The court highlighted the procedural lapses, deeming the deduction a breach of PTA’s fundamental rights. Although PTA sought a refund at the time, the Commissioner Inland Revenue failed to respond within the legally required timeframe.
In addition to ordering a resolution, IHC imposed a Rs. 100,000 fine on the Commissioner Inland Revenue for inaction, instructing the official to pay the amount to PTA within one month. Justice Sattar underscored the importance of adhering to legal protocols, instructing FBR to rectify the issue promptly.
