Lahore High Court Thursday declared that notification SRO No 611(I)/2016, dated June 09, 2016, of the Federal Board of Revenue (FBR) is ultra vires and unlawful and Directorate General of Intelligence and Investigation Inland Revenue (IR) has no jurisdiction to exercise powers under the Anti-Money Laundering Act, 2010.
It was learnt that the LHC maintained that notification SRO No 611(I)/2016, dated June 09, 2016, is ultra vires and unlawful; therefore, the DG I&I has no jurisdiction to exercise powers under the Anti-Money Laundering Act, 2010.
A tax expert informed that the matter was earlier decided by the learned single judge vide judgment dated January 24, 2018, whereby the notification SRO 611(I)/2016 dated June 09, 2016 was struck down being ultra vires and unlawful on the plea that it was issued without the express approval of the federal government as held by the Supreme Court of Pakistan in case reported as PLD 2016 Supreme Court 808 (Mustafa Impex Case).
The judgment dated January 24, 2018 was challenged in Intra Court Appeal (ICA) bearing No 165730/2018 by the Directorate Intelligence & Investigation Inland Revenue which was decided on June 04, 2018 by the Division Bench of Justice Abid Aziz Sheikh and Justice Faisal Zaman Khan, whereby the matter was referred to LHC Single Bench on the grounds that since mandatory notice under Order XXVIIA CPC was not issued to the attorney general for Pakistan; therefore, the impugned judgment is nullity in the eyes of law as per dictum laid down by the apex court reported as PLD 1992 Supreme Court 723 and PLD 2002 Supreme Court 167.
The Single Bench Thursday decided the matter after giving notice under Order XXVIIA CPC to the attorney general for Pakistan and following the judgment reported as PLD 2018 Lahore 198 decided by full bench of the Lahore High Court, Lahore.
This judgment clearly holds that DG I&I has no authority to exercise powers under the Anti-Money Laundering Act, 2010; therefore, proceedings so initiated against the petitioner or any other persons are held to be ultra vires.
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