LHC Prohibits FIA from Taking Coercive Measures Against FBR Officers

The Lahore High Court has barred the 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 Act shall be conducted in respect of the offenses falling under the schedule of the Act. Neither the Income Tax nor the Sales Tax Act 1990 are listed in the Schedule Act. Hence, the FIA has no jurisdiction to conduct an inquiry regarding refunds made to large companies. Further contends that section 216 1 of the 2001 ordinance 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 refunds made to large companies. Reportedly, Member IR operations and others have not joined the FIA inquiry. It merits mentioning here that FBR suspended officers after speed money issues surfaced in this refund case.