Info under income tax law: Banks withdraw petitions from SHC

Banks have withdrawn their petitions from Sindh High Court (SHC) on the issue of providing information under Sections 165 and 165A (furnishing of information by banks) of the Income Tax Ordinance 2001 after settlement of issues with the Federal Board of Revenue (FBR).

It is learnt that similar petitions of the banks in Lahore High Court would also be withdrawn.

According to the order sheet of the SHC, there is a bunch of petitions involving similar points. Some of the counsel for the petitioners seek permission to withdraw the petitions on the ground that since an understanding in respect of issues involved in the petitions has been reached between the FBR and the banks, hence they do not press these petitions. Since the issues are common in all the petitions, hence all the petitions along with the pending applications stand disposed of in view of the said settlement made with the FBR. According to a tweet of FBR Chairman Shabbar Zaidi on Friday, "I thank Pakistan Banks' Association and the management of all the banks for complete cooperation in disposing of long outstanding pending litigation. We assure on behalf of FBR that we will reciprocate confidence and cooperation extended to us."

Zaidi said the FBR is pleased to announce that the process of implementation of agreement with traders will start next week. Committees represented by the traders of each area/ market, covering the whole country will be notified. Traders and FBR will work together for registration. It is a new beginning, he added.