Tax refund cases: LHC bars FIA from taking steps against FBR officers

ISLAMABAD: The Lahore High Court (LHC) has barred Federal Investigation Agency (FIA) from taking coercive measures against the Federal Board of Revenue (FBR) officers who have been summoned in tax refund cases.

The LHC judge Tariq Saleem Sheikh, in its order, barred the FIA from taking any coercive measures against the FBR officers.

The advocate for the petitioners has contended that an inquiry and investigation under the FIA Act shall be conducted in respect of the offences falling under the schedule of the FIA Act.

Neither the Income Tax Ordinance nor the Sales Tax Act 1990 are listed in the schedule Act.

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Hence, the FIA has no jurisdiction to conduct an inquiry regarding refunds made to the large companies.

Further contends that section 216 of the Income Tax ordinance 2001 prohibits disclosure of the department record to any public servant save as provided in the ordinance.

It is pertinent to mention that FIA had summoned FBR officers, including Member IR Operations, in refund issued to large companies. Recently, the FBR suspended officers after speed money issue surfaced in this refund case.

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