The Lahore High Court (LHC) Rawalpindi Bench has barred the Regional Tax Office (RTO) Rawalpindi from attaching bank accounts of the taxpayer earning salary/rental income.
The petitioner is an individual taxpayer registered with FBR under the Income Tax Ordinance 2001, and derives income from salary and rental income from properties.
LHC has issued a directive to the FBR that no coercive measures shall be taken against the Petitioner, till the next date of hearing.
“Notice be issued to the FBR/RTO Rawalpindi for March 12, 2024. The Law Officer shall seek instructions from the relevant quarter(s) and also ensure submission of the report”, LHC order added.
The petitioner is aggrieved by tax demand amounting to Rs. 1,488,798/- for the Tax Year 2018. Petitioner’s first Appeal along with the Interim Relief Application before the Commissioner (Appeals) is pending and cannot be heard due to the non-availability of the concerned Commissioner (Appeals).
Through this petition under Article 199 of the Constitution, the petitioner challenged the action of the RTO Rawalpindi of attaching his bank accounts.
At the outset, the learned Law Officer objected to the maintainability of this petition by submitting that the accounts of the Petitioner have rightly been attached by the concerned authority as per law.
In response, Shazia Malik, Advocate submitted that the impugned action has been taken against the Petitioner without adopting the due procedure provided under the Income Tax Ordinance, 2001 (the “Ordinance”).
She argued that under Article 4 of the Constitution, it is an inalienable right of every citizen to be treated in accordance with law and no action detrimental to his/her life, liberty, reputation or property shall be taken except as per law.
She added that under Article 10-A of the Constitution, it is a fundamental right of every citizen to have a fair trial and due process. She contended that the Petitioner has, prima facie, an arguable case and balance of convenience for the grant of interim relief also tilts in his favor.
The RTO Pindi is pressing hard to the Petitioner’s Banks by way of attachment of Accounts for recovery of the tax demand, hence, this Petition.
