The Islamabad Excessive Court docket (IHC) granted bail on Wednesday to Shahid Hussain Khawaja, a suspect in a Rs3.2 billion gross sales tax fraud case, citing inadequate proof and reprimanding the Federal Board of Income (FBR) for overstepping its authority.
Justice Babar Sattar authorised Khawaja’s launch on a Rs100 bond, calling the tax division’s actions an unconstitutional overreach.
The courtroom dominated that Khawaja, a financial institution department supervisor in Karachi, was arrested with out proof of direct involvement within the alleged fraud.
In a scathing verdict, the courtroom accused the FBR of violating established authorized ideas, together with a Lahore Excessive Court docket ruling that barred related actions in tax-related instances.
Justice Sattar acknowledged that the FBR had infringed on Khawaja’s basic rights and criticised decrease courts for failing to safeguard these protections.
“The Justice of the Peace’s resolution to remand the suspect and the decrease courtroom’s rejection of bail exhibit a disregard for constitutional ensures and the Gross sales Tax Act,” Justice Sattar famous within the detailed judgement.
Khawaja was accused of facilitating the opening of an organization account allegedly used for tax fraud.
Nonetheless, the courtroom highlighted that the FBR offered no materials proof linking him to fraudulent actions.
The judgement additionally famous that the FBR had failed to find out the precise tax legal responsibility below the legislation earlier than initiating prison proceedings.
The courtroom discovered this strategy not solely illegal but additionally opposite to the Supreme Court docket’s affirmation of the Lahore Excessive Court docket’s resolution in the same case involving Taj Worldwide.
The courtroom directed the FBR to distribute copies of the decision to its officers, emphasising adherence to authorized requirements in future instances.
Justice Sattar warned that failure to conform may result in punitive motion in opposition to tax officers.