Jahangir Tareen sugar mills: LHC says audits must follow law
The Jahangir Tareen sugar mills case turned on the order of steps: the court held that a tax officer cannot pick a firm for audit and ask for its records afterwards.
The Lahore High Court set aside two sales tax notices issued to JK Sugar Mills, a company linked to former MNA Jahangir Khan Tareen.
The bench held that a tax commissioner cannot select a firm for audit first and demand its records later.
The notices were dated March 3 and March 6, 2017, and the petition against them was filed in 2017.
The court said any audit under Section 25 of the Sales Tax Act must be backed by a reasoned order.
The sources do not say whether the tax department will appeal the ruling.