In Islamabad, the Supreme Court was informed by the Attorney General for Pakistan (AGP) that swift actions are forthcoming to ensure the full functionality of the Policy Board of the Federal Board of Revenue (FBR).
AGP Mansoor Usman Awan assured that the legal queries raised on March 14, 2024, will be comprehensively addressed in the upcoming Finance Act. He emphasized the imminent steps towards establishing the Policy Board, projecting its prompt operationalization.
During the proceedings, the Court observed the non-effectiveness of the Policy Board as envisaged under Section 6 of the Act. Additionally, it noted the incomplete establishment of a data bank, as mandated by Section 14 of the Act. The absence of such data impedes the expeditious resolution of tax cases and hampers judicial proceedings.
A sum of Rs3.2 trillion cases is entangled in legal battles, with the efficiency of FBR’s legal operations marred by loopholes, as highlighted by the AGP.
A bench comprising Justice Syed Mansoor Ali Shah, Justice Athar Minallah, and Justice Irfan Saadat Khan heard petitions challenging a notification issued on August 5, 2020, under Section 209 of the Income Tax Ordinance, 2001. This notification conferred jurisdiction over LTU cases in Quetta and Peshawar to Karachi and Islamabad respectively.
The withdrawal of the said notification on March 12th and 13th, 2024, led to the disposal of petitions. However, the Court adjourned the case to the second week of July to deliberate on raised legal questions.
These questions pertain to the delegation of FBR’s powers under Section 8 of the Federal Board of Revenue Act, 2007, the authorization of the Commission Inland Revenue (Legal) LTU, Karachi to maintain a petition, and the engagement of separate counsel by Regional Tax Office, Quetta, and Chief IR (Formation), FBR.
AGP’s appearance before the Court on April 23rd underscored the need for revisiting and reexamining Section 8 of the Act. He acknowledged the necessity for clarity regarding the extent of delegation and the conditions thereof.
AGP Mansoor conceded that the delegation of powers under Section 8 to any government agency or FBR employee seems to exceed legal bounds, necessitating reconsideration.
The case stands adjourned until the second week of July.