SHC rejects Axact petition for being ineffective

KARACHI: The Sindh High Court has rejected the petition of Axact (Pvt) Ltd against income tax notices for being ineffective and directed the company to give reply to the income tax department and submit an amended petition once again. During the course of hearing by the two-member bench of the SHC, the income tax lawyer informed the SHC that the Commissioner Income Tax had disposed of the Axact appeals, therefore its petition has become redundant. At this point, the Axact lawyer sought adjournment on the grounds that senior lawyer Shahab Sarki was busy at the Supreme Court, Islamabad. The SHC adjourned the hearing till February 27 while giving extension to the stay order on tax payment. Axact, infamous for forging degrees, had pleaded the SHC to declare the income tax notices null and void. The company pleaded that taxes cannot be levied as its income transactions take place through the State Bank of Pakistan, while taxes are not levied on the sale of software also.