20000130

CBR withdraws circular

RECORDER REPORT

ISLAMABAD: In compliance with the decision of the Lahore High Court, the Central Board of Revenue (CBR) has withdrawn its Circular No. 3 of 1997 regarding recovery of income tax demand.

The circular had provided that 30 percent of the tax demand would be recoverable as soon as it was raised and that no coercive measure was to be taken for the recovery of the remaining 70 percent up to a period of three months from the date of assessment.

The Lahore High Court had declared that the circular No 3 was without lawful authority on an appeal filed by an assessee in October '98.

In a circular issued on Saturday, the CBR has said that it has withdrawn the circular No 3 and now the recovery of tax demand may be made in accordance with the provisions contained in Income Tax Ordinance, 1979 and Income Tax Recovery Rules.

However, the requests for stay of recovery of tax demanded may be decided on the merits of each case, it said.