Bail Approval
The Islamabad high court has approved the bail of Shahid Hussain Khawaja, an accused in a sales tax fraud case regarding Rs. 3.2 billion. The court granted him bail on a nominal bond of Rs. 100, highlighting flaws in the tax department’s actions.
Tax department’s Overreach
In its judgment, the court ruled that the tax department had overstepped its authority by not determining the tax liability as per the law. It found the branch’s arrest of the accused to be in violation of Lahore High Court’s prior ruling.
Lower court’s Mistake
The court expressed disappointment over the lower court’s failure to consider the provisions of the Sales income Tax Act and its unjustified support for the tax department’s wrongful movements. The court mentioned the violation of constitutional rights of the accused.
Abuse of power by Tax Authorities
The court condemned the misuse of power by tax authorities, emphasizing that they had breached the legal process . The Islamabad High court directed the Chairman of the Federal Board of Revenue (FBR) to circulate copies of each the Islamabad and Lahore high court rulings to tax officials.
Actions against Public officials
The court further warned public officers to exercise their powers strictly according to the law. It stated that failure to do so would lead to further legal consequences for those involved in the wrongful movements.