Attachment of Discos’ bank accounts: IHC issues notices to FBR chief, others

ISLAMABAD: Islamabad High Court (IHC) has issued notices to Chairman Federal Board of Revenue (FBR), Member Operations-IR and Large Tax Office (LTO) Islamabad’s tax employees for recovery through attachment of bank accounts of power distribution companies (Discos) without prior approval of Member Operations.

The court has taken a serious notice for constant violation of its order in the Pakistan LNG case.

It is reliably learnt that a petition has been filed by a power distribution company through tax lawyer Waheed Shahzad Butt after long silence from FBR/ LTO Islamabad for not clarifying the matter pertaining to tax recovery through attachment of bank accounts without due process of law and in violation of IHC binding order in Pakistan LNG case.

Bank account attachment of Discos, others: FBR endorses referring matter to Member (IR) Operations

The FBR instructions revealed that the matter of attachment of bank accounts of power distribution companies (DISCOS), National Transmission & Dispatch Company (NTDC) and Central Power Purchasing Agency (CPPA) should be referred to the FBR for prior approval of Member Operations.

Waheed Butt stated that some tax employees posted at LTO are openly violating the instructions issued by FBR in case of attachment of bank account of Discos, NTDC, and CPPAG in recovery measures and instructions issued in C. No. 6 (21) S (IR-Operations)/ 2017/ 35481-R dated 20.03.2017, have been ignored and violated by the LTOs without any fear of accountability, which is reaffirmed/reconfirmed by parent agency (FBR) on November 27, 2023.

IHC after hearing the Disco side argument issued notices to Secretary Revenue Division, Member (Operations), Chief CIR, CIR and DCIR, Zone-II, LTO, Islamabad. IHC order states, “The petitioner is aggrieved by recovery notices dated Feb 22, 2023 pursuant to which coercive recovery has been affected from the accounts of the petitioner.

The learned counsel for the petitioner states that the assessment order was pending adjudication before Commissioner (Appeals), who by order dated Feb 21, 2023 had dismissed the petitioner’s appeal. Such order was communicated to the petitioner at 02:00 p.m. on Feb 22, 2023. However, without issuing any prior notice after dismissal of the petitioner’s appeal or even the communication of the appeal order to the petitioner, coercive recovery was affected at 09:00 a.m. on Feb 22, 2023 in breach of law.

He states that the coercive recovery is also in breach of the instructions issued by FBR to the Commissioner, by letter dated March 20, 2017 directing the Commissioners that coercive recoveries are not to be affected against discourse without the prior approval of FBR.

Let notices be issued to the respondents for Feb 22 2024, who will file report and para-wise comments before the next date of hearing, IHC order added.

Copyright Business Recorder, 2024