LAHORE: The Lahore High Court (LHC) has stopped the Federal Board of Revenue (FBR) from raiding/visiting business places of taxpayers without solid evidence while hearing a petition against the operations of the FBR.
As per details, A two-member bench headed by Justice Shahid Jameel heard the case filed by Iqbal and Sons. The counsel for petitioner Mohsin Virk argued that the FBR was authorized under Section 38 of Sales Tax Act to raid/visit the business places of taxpayers, adding that the board was misusing the section, as the business community was being harassed through such acts.
Petitioner’s counsel further stated that the FBR was working on the policy of ‘pick and choose’ for visiting the business places. He added that under the Sales Tax Act, the FBR could visit the business points of those who were involved in tax evasion. The board could also take action under criminal law against the tax evader on facing resistance, he added.
The counsel pleaded the court to restrain the FBR from raiding/visiting the points without solid evidence. On the other side, the counsel for the FBR argued that FBR has right of independence visit to taxpayers’ outlets under the Sales Tax Act.
After hearing the arguments from both sides, the bench of LHC barred the FBR from visiting the business places without evidence and also sought FBR’s detailed reply in this regard within three weeks.
Court also said in the remarks that FBR not authorized to raid on the points of that businessman that inquiry not delaying under FBR. Court further ordered to compile all application regarding raids of FBR on business points.
