LAHORE: The Lahore High Court (LHC) has barred 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.
A two-member bench headed by Justice Mansoor Ali Shah heard the case filed by Crescent Colors. The counsel for petitioner argued that the FBR was authorised 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 Mohsin Virk 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.
