| Case ID |
119752e2-af86-40a9-83a0-abe1c53867de |
| Body |
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| Case Number |
High Court Appeal No. 277 of 2017 |
| Decision Date |
Nov 22, 2019 |
| Hearing Date |
Nov 19, 2019 |
| Decision |
The Sindh High Court dismissed the petition filed by Bank Islami Pakistan Limited, which sought a writ to prohibit the Inland Revenue authorities from requiring information related to Debit/Credit Card machines installed at various commercial establishments. The court upheld the powers of the income tax authorities under Section 176(1)(a) of the Income Tax Ordinance, 2001, to demand information not only from taxpayers but also those who may be linked to the tax system. The court found that seeking such information did not amount to an unlawful fishing expedition, nor did it violate the confidentiality obligations asserted by the petitioner under the Banking Companies Ordinance, 1962. The court concluded that there was no legal basis to interfere with the notice issued by the tax authorities, thereby dismissing the petition. |
| Summary |
In the case of Bank Islami Pakistan Limited vs. Manzar Masood, the Sindh High Court dealt with the conflict between banking confidentiality and the powers of the income tax authorities to seek information. The bank challenged the validity of a notice issued by the tax authorities under Section 176(1)(a) of the Income Tax Ordinance, 2001, which sought details regarding Debit/Credit Card machines installed at commercial establishments. The petitioner argued that the notice was issued without lawful authority and constituted a fishing expedition. However, the court ruled that the tax authorities have extensive powers to obtain information relevant to tax obligations, and the requested information did not infringe upon client confidentiality as defined under the Banking Companies Ordinance. The court emphasized the importance of compliance with tax regulations and the need for financial institutions to cooperate with tax authorities to ensure proper revenue collection. The judgment reinforces the legal framework governing the relationship between financial confidentiality and tax compliance, aiming to clarify the boundaries of each entity's authority within the context of economic reforms. This case highlights the ongoing legal discourse surrounding banking confidentiality and the powers of tax authorities, making it a significant reference for future cases in similar domains. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
IRFAN SAADAT KHAN,
JUSTICE FAHIM AHMED SIDDIQUI
|
| Lawyers |
Not available
|
| Petitioners |
BANK ISLAMI PAKISTAN LIMITED THROUGH PRESIDENT
|
| Respondents |
MANZAR MASOOD
|
| Citations |
2020 SLD 909,
2020 CLD 954
|
| Other Citations |
Caretex v. Collector Sales Tax and Federal Excise PLD 2013 Lah. 634,
Messrs Ghulam Hussain and Co. v. Messrs National Bank of Pakistan 2004 CLD 1640,
Caretex v. Collector Sales Tax and Federal Excise 2013 PTD 1536,
Mohsin Raza v. Chairman, FBR and others 2009 PTD 1507,
Assistant Director, Intelligence and Investigation v. Messrs B.R. Herman and others PLD 1992 SC 485
|
| Laws Involved |
Banking Companies Ordinance, 1962,
Income Tax Ordinance, 2001
|
| Sections |
33-A,
176(1)(a)
|