The High Court has started its hearing on two writ petitions filed by Grameen Kalyan, an organisation headed by Noble Laureate Prof Dr Muhammad Yunus, challenging the imposition of income tax worth Tk 5.76 billion on the organisation for five assessment years from 2012-13 to 2016-17.
After a partial hearing on the petitions, the High Court bench of Justice Muhammad Khurshid Alam Sarkar and Justice S M Maniruzzaman adjourned it until July 16 next.
During the hearing on Thursday, the HC bench observed that the businessmen search loopholes to evade tax. However, when the figure stands at a huge amount then they shout, it is also observed.
Lawyer Sarder Jinnat Ali appeared in the court hearing on behalf of Grameen Kalyan, while Assistant Attorney General Tahmina Polly represented the state.
Tahmina Polly told the FE that by issuing two separate notifications on September 7 and 11 in 2017, Tax Zone-14 in Dhaka claimed Tk 5.76 billion as income tax from the Grameen Kalyan for the assessment years from 2021-13 to 2016-17.
The tax office also granted two weeks' time to Grameen Kalyan and fixed September 21 in 2017 for holding a hearing on the issue.
Appearing on that day, Grameen Kalyan sought one month's time from the tax office saying that they need it for collection required documents. However, the tax office rejected their prayer and passed an order on September 26 in 2017.
Later Grameen Kalyan filed a review petition which was also rejected by the tax office on November 14 in 2017. Grameen Kalyan then moved to the High Court and filed two separate writ petitions on different grounds.
Upon hearing the petitions, the High Court bench of Justice Zubayer Rahman Chowdhury and Justice Md Iqbal Kabir on November 26 in 2017 issued a rule asking the government to explain as to why the orders passed by the tax office on November 14 in 2017 and September 26 in 2017 should not be declared illegal.
Pending disposal of the rule, the operation of the demand notices for income tax were stayed for six months. The tenure of the stay was extended several times.
The High Court bench of Justice Muhammad Khurshid Alam Sarkar and Justice Sardar Md Rashed Jahangir on October 17 in 2023 delivered a verdict based on the rule issued in 2017. The HC bench set aside the order passed on November 11 in 2017 and disposed of the rule with some observations.
However, following a leave to appeal petition the apex court on March 11 this year asked the HC bench headed by Justice Khurshid Alam Sarkar to hear and dispose of the rule on the basis of the rule issuing terms afresh on merit.
Complying with the apex court order, the HC bench on Thursday started a new hearing on the petitions.
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