The Islamabad High Court (IHC) has delivered an important verdict in the case of Pakistan Telecommunication Authority (PTA) vs Federal Board of Revenue (FBR), raising serious questions about the way FBR collects advance tax.

The issue began when the FBR attached PTA’s bank accounts to recover advance tax under Section 147 of the Income Tax Ordinance.

PTA argued that this action was taken without proper notice and violated due legal process.

After reviewing the case, the IHC declared FBR’s move illegal. The court clarified that under the law, advance tax cannot be recovered directly unless the tax authority first issues notices under Section 137 and Section 138.

These notices are mandatory steps to inform and warn taxpayers before any recovery action is taken.
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The judgment emphasized that skipping this legal procedure violates taxpayer rights and damages trust in the taxation system.

The court observed that even government agencies must follow the law strictly and cannot bypass due process for convenience.

This ruling is a major win for taxpayers in Pakistan. It limits FBR’s power to make sudden recoveries and ensures legal safeguards are respected.

By holding FBR accountable, the IHC has strengthened confidence in the judiciary and signaled that taxpayers cannot be deprived of their rights through arbitrary actions.