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Tax claim of Tk 6.66b

HC rejects writ petitions of Grameen Kalyan

FE REPORT | Monday, 5 August 2024



The High Court Monday rejected two writ petitions filed by Grameen Kalyan, an organisation headed by Nobel Laureate Prof Dr. Muhammad Yunus, challenging the legality of the imposition of income tax worth Tk 6.66 billion on the organisation for five assessment years from 2012-2013 to 2016-2017.
The High Court bench of Justice Muhammad Khurshid Alam Sarkar and Justice SM Maniruzzaman delivered the verdict after hearing the petitions.
Grameen Kalyan's lawyers, Sarder Jinnat Ali and Abdullah Al Mamun, told the FE that they will file an appeal petition against the HC verdict.
On September 7 and 11, 2017, Tax Zone-14 in Dhaka issued two separate notifications claiming Tk 6.66 billion as income tax from Grameen Kalyan for the assessment years of 2012-2013 to 2016-2017.
The tax office also granted Grameen Kalyan two weeks' time and fixed September 21, 2017, for a hearing on the issue.
Appearing on that day, Grameen Kalyan requested one month's time from the tax office, stating that they needed it to collect the required documents. However, the tax office rejected their request and passed an order on September 26, 2017.
Later, Grameen Kalyan filed a review petition, which was also rejected by the tax office on November 14, 2017. Grameen Kalyan then moved the High Court and filed two separate writ petitions on different grounds.
Upon hearing the petitions, a High Court bench on November 26, 2017, issued a rule asking the government to explain why the orders passed by the tax office on November 14, 2017, and September 26, 2017, should not be declared illegal. Pending the disposal of the rule, the operation of the demand notices for income tax was 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, 2023, delivered a verdict based on the rule issued in 2017. The HC bench set aside the order passed on November 11, 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 started new hearings on the petitions in May.

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