Grameen Kalyan: HC clears way for NBR to recover Tk 666cr in tax

The High Court yesterday released the full verdicts rejecting two petitions filed by Grameen Kalyan against the National Board of Revenue (NBR) orders reassessing its income tax at around Tk 666 crore, clearing the way for the tax authorities to recover the dues.

Grameen Kalyan is a non-profit charitable organisation founded by former interim government chief adviser and Nobel laureate Professor Muhammad Yunus.

“The respondents (NBR chairman and other officials concerned) are directed to take necessary steps to realize the unpaid tax from the petitioner in accordance with law as expeditiously as possible. Let a copy of this judgment and order be communicated to the respondents forthwith,” the bench of Justice Md Mozibur Rahman Miah and Justice Rezaul Karim said in one of the full texts of judgments.

In another verdict, the same bench said, “The respondents are directed to do the needful relating to the unpaid tax from the petitioner by issuing necessary demand notice immediately. Let a copy of this judgment and order be communicated to the respondents forthwith.”

“As per the above provision of section 121A(4)(b) of the Income Tax Ordinance, 1984, the petitioner (Grameen Kalyan) has admittedly not paid tax when it filed returns of the assessment years impugned in the writ petitions under section 75(2)(d)(iii) so it was legally bound to pay tax as per section 74 of the Ordinance having no scope to walk away treating payment of tax by Grameen Telecom at source as its own payment,” the HC judges said in the verdict.

Contacted, Deputy Attorney General Abdus Samad Azad, who argued for the state, said the Deputy Commissioner of Taxes, Taxes Zone-14, who is the respondent No-2 upon receiving the judgment, which is expected within the next day or two, will issue a notice under Sections 214 or 221 of the Income Tax Act, 2023 to Grameen Kalyan seeking payment of Tk 666 crore in income tax for the tax years from 2012-13 to 2016-17.

If Grameen Kalyan does not pay the outstanding tax dues, the NBR can take necessary actions including confiscating its bank accounts and other properties under Section 221 of the law, he added.

Meanwhile, Grameen Kalyan’s lawyer, Barrister Khaja Tanvir Ahmed said his client would appeal against the HC verdict to the Supreme Court.