The Lahore High Court (LHC) has barred the Federal Board of Revenue (FBR) from auditing Jahangir Khan Tareen’s JDW sugar mills.
The revenue board had issued notices to the JDW group last month to audit its mills but the group had petitioned the LHC, seeking a restraining order against the board.
Justice Jawad Hassan of the LHC heard the petition and duly issued a notice to the taxation authority.
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The defense counsel said that his client is not a defaulter and despite this, three consecutive notices had been sent to the JDW group for the recovery of income tax. He remarked that his client’s sugar mills had been selected for an income tax audit despite being a regular taxpayer.
The counsel argued that the FBR had launched an audit of the five-year-old accounts of the company although it legally cannot hold an audit of accounts beyond five years.
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The petition had sought a legal restraining order against the FBR’s notices served on 16, 22, and 29 October.
After the initial argument, the LHC bench suspended the FBR’s notices to the JDW group and issued notices to the respondents in the case. The case has been adjourned for one week.
