Mohsin Siddiqui (Chief Reporter)
The Islamabad High Court (IHC) has escalated its response to the continuous violation of its directives in the Pakistan LNG case, instructing the submission of names of Large Taxpayer Officer (LTO) Islamabad personnel implicated in unauthorized tax recovery procedures, particularly through the attachment of Power Distribution Companies’ (Discos) bank accounts.
Previously, the IHC had served notices to senior officials, including the Federal Board of Revenue (FBR) chairman, the Member Operations-IR, and tax officials of the LTO, such as the Chief CIR, Commissioner, and Deputy Commissioner Zone-II, Islamabad. A hearing for the petition has been scheduled for February 29, 2024.
In response to the prolonged inaction from the FBR/LTO Islamabad, Islamabad Electric Supply Company Limited (IESCO) initiated legal action represented by tax lawyer Waheed Shahzad Butt. IESCO filed a constitutional petition before the IHC, contesting the enforced tax recovery without due legal process, directly defying the IHC’s authoritative ruling in the Pakistan LNG case.
The petitioner, IESCO, expressed reservations regarding alleged tax recovery devoid of proper legal protocols, which blatantly contravenes the IHC’s directives.
It is argued in the petition that despite previous directives from the FBR regarding the necessity of obtaining prior approval from the FBR Member Operations-IR, the matter remains unresolved.
Waheed Shahzad Butt alleges that certain LTO tax officials are openly disregarding FBR instructions regarding the attachment of bank accounts belonging to Discos, National Transmission & Dispatch Company (NTDC), and Central Power Purchasing Agency (CPPA).
The lawyer highlights the blatant disregard for instructions issued in C. No. 6 (21) S (IR-Operations)/2017/35481-R dated March 20, 2017, by LTOs, without fear of repercussions, as confirmed by the FBR’s parent agency on November 27, 2023, through the office of Member Operations-IR.
The IHC’s order stated the grievances of the petitioner concerning recovery notices dated February 22, 2023, leading to coercive recovery from the petitioner’s accounts. The petitioner’s appeal, pending adjudication before the Commissioner Inland Revenue (Appeals), was dismissed on February 21, 2023. Despite the dismissal, coercive recovery commenced on February 22, 2023, violating legal procedures and FBR instructions.
The court has set the next hearing for February 29, demanding reports and detailed responses from the FBR and LTO tax employees.
