SC status quo on NBR notice for income tax collection from pvt varsities
FE REPORT | Tuesday, 9 April 2024
The Appellate Division of the Supreme Court on Monday issued status quo on an action of the National Board of Revenue (NBR) for collecting income tax from three private universities.
The three private institutions are University of Liberal Arts Bangladesh (ULAB), North South University (NSU) and Southeast University.
Justice Md Ashfaqul Islam, Chamber Judge of the Appellate Division of the Supreme Court (SC), passed the order following three separate appeals filed by the three private universities challenging a notice issued by the NBR demanding income tax from them.
The apex court judge also set April 21 for further hearing on the appeals at its full bench.
The Appellate Division of the SC on February 27 this year cleared the way for the NBR to realize 15 per cent income tax from the private educational institutions including private universities and private medical, dental and engineering colleges.
On that day, the apex court had set aside a High Court verdict that on September 05 in 2016 declared illegal the government decision imposing 15 per cent income tax on private universities and private medical, dental and engineering colleges.
A four-member bench of the Appellate Division of the SC headed by Justice Borhanuddin delivered the verdict after disposing of the petitions filed in this regard.
Barrister Omar Sadat who appeared in the court proceedings on behalf of the ULAB told the FE that the NBR on March 04 issued a notice asking his client to pay income tax, saying that otherwise their bank accounts would be frozen, although full judgement of the apex court on the issue was yet to be released.
He said, "We don't know in which term the Appellate Division has disposed of the appeals against the High Court verdict as its full text is yet to be released. Therefore, the NBR has no authority to demand income tax from the private institutions before the written and signed verdict of the Appellate Division."
"In this circumstance we have filed the petition seeking stay on the NBR notification," the lawyer also said.
Till further order of the apex court, the three private universities need not to pay income tax, the lawyer added.
Senior lawyers AF Hassan Ariff and Fida M Kamal and Barrister Omar Sadat appeared for the private universities, while Attorney General AM Amin Uddin represented the government.