LHC Reserves Verdict On Petitions Against FBR Audit Policy

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LHC reserves verdict on petitions against FBR audit policy

LAHORE, (UrduPoint / Pakistan Point News - 25th Nov, 2016 ) : The Lahore High Court (LHC) on Friday reserved verdict on more than 800 petitions, challenging the Federal Board of Revenue's Audit Policy 2015.

The single bench comprising Justice Shahid Jamil Khan heard the petitions, filed by Nestle Pakistan and others. Earlier, the petitioners' counsel Mohsin Virk and others, arguing before the court, submitted that the FBR had issued notices to the petitioners for sales tax, federal excise duty and income tax audit after selecting them through random computer ballot.

They contended that the selection had not been made as per directions of the court. They said the LHC had already ordered the FBR to form rules for selection first and then initiate selection process.

But the board made the selection without forming rules, they added. They pointed out that many individuals including salaried persons were not included in the balloting process which was a violation of Article 27 of the Constitution.

They pleaded with the court to declare selection of the petitioners for audit invalid. However, FBR counsel Barrister Asjad Saeed opposed the request and submitted that the court had asked the board to form rules for selection, if it was considered necessary.

He said instead of forming rules, the board introduced the policy as it was easy to amend a policy than the rules in case of any shortcoming. He said petitioners also failed to point out any discrimination in the selection process.

He pleaded with the court to dismiss all petitions. The court, after hearing detailed arguments of parties, reserved the judgement on the petitions. However, the court restrained the board from making final decision on the audited cases of the petitioner-companies. It is pertinent to mention that the board conducted audit of the petitioner-companies on the directions of the court.