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Plea in court to nullify Sharif family's tax assessment

22 January, 2014

LAHORE: A division bench of the Lahore High Court ordered for submission of written arguments till February 7 on 52 identical petitions filed by the Sharif family challenging 'incorrect' assessment of their income taxes.

Mian Nawaz Sharif and his wife Kalsoom Nawaz, Mian Shahbaz Sharif and his wife, Nusrat Shahbaz, Hamza Shahbaz, Mian Tariq Shafi and Mian Javaid Shafi and others filed the appeals. The Sharif family was accused of evading tax of Rs650 million during years 1990 to 2000 and also a penalty was imposed on them.

Petitioners counsel Tariq Aziz Malik submitted that about Nawaz Sharif case that the tax department never disclosed as to what amount of tax was due on him and it was a vague notice, which did not have legal sanctity. He said the order of income tax commissioner was repugnant and inconsistent with section 3 & 4 of Wealth Tax Act 1963 which states that no penalty or additional tax can be imposed during the pendency of appeal. And the appeals of the petitioners were pending for the last seven years.

He said Kalsoom Nawaz and Shahbaz had paid the income tax during the stipulated time and no objection was raised against it at that time. He said that the notices were issued to petitioners after the year 2000 and objection on tax assessment was raised after about 1,213 days instead of the required 60 days period.

He submitted that re-opening of the case was illegal, as the tax department already accepted the tax and now it could not raise any objection. He said the show-cause notice was not issued to the petitioners, which were necessary before taking any action.

He pleaded that this action of the sales department was contravention of the section 10, 34 and 46 of the Sales Tax Act 1990. He said that the notice was violation of the section 177 of Income Tax Ordinance and requested the court to declare the assessment made by the department after such a delay as illegal.


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