FBR has been forbidden from Taking Action against Sugar Mills

The Federal Board of Revenue (FBR) has been ordered by the Lahore High Court to refrain from taking coercive measures against Ramzan Sugar Mills, which is owned by the sons of Leader of the Opposition in the National Assembly Shahbaz Sharif, until its application against a show-cause notice for an audit inspection for 2015 is decided.

Justice Jawad Hassan noted in his conclusion that they had not issued an adverse order against the mills. The impugned notice just demanded certain information/documents from them. The petitioner/mills had other options.

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According to the ruling, the petitioner could only approach the court in a tax reference after exhausting all other options. He pointed out that the petitioner was required to supply the FBR with the required documents/records in the disputed notice.

The judge ordered the board to rule on the mills’ application under section 122(4) of the Income Tax Ordinance within one month of receiving the certified copy of the LHC ruling.