LAHORE - Lahore High Court on Friday stopped Federal Tax Ombudsman from using contempt court powers.

Advocate Akram filed the petition and submitted that Federal Tax Ombudsman was using contempt of court powers under article 204 of the Constitution.

 He said such exercise by the said department is unconstitutional as FTO was created as a result of statutory law and it could not use constitutional power.

After hearing the arguments, the court stopped FTO from using contempt of court powers till the final decision of the petition on the matter.

Pay Rs2.5m per day to PR: Meanwhile, Justice Khalid Mahmood Khan of the LHC ordered owners of business train to pay Rs.2.5 million per day to Pakistan Railways.

Railways department filed a petition and submitted that a contract was done between owners of Four Brothers business train and Railways authorities under which train’s owner had to pay rent of Rs.3.3 million per day.

He said train owners were violating the contract and had not paid a single penny. He requested the court to direct train owners to pay rent as per the contract.

 The court, however, passed an order for payment of Rs.2.5 million per day to Railways and adjourned hearing for indefinite period.