ISLAMABAD - The Supreme Court of Pakistan on Monday dismissed the Federal Board of Revenue (FBR) appeal as it failed to furnish proof of notices showing additional taxes levied on Pakistan Muslim League-Nawaz (PML-N) president Shehbaz Sharif and late Kulsoom Nawaz, wife of former prime minister Nawaz Sharif. 

A three-member bench of the apex court headed by Justice Umar Ata Bandial conducted hearing of an appeal of Commissioner Inland Revenue, Lahore, against the Lahore High Court (LHC) judgment. 

The LHC on the writ petition of Kulsoom Nawaz and Shehbaz Sharif had delivered judgment against FBR as the department failed to submit the proof of the notices for additional tax issued to the PML-N leaders. The department therefore approached the apex court against the LHC verdict. 

On the last hearing the apex court had provided last opportunity to FBR to furnish proof of the notices. Justice Bandial had said that if it was proved that notices had been received then the additional taxes will be effective; otherwise, the apex court will throw out the case filed by the FBR against the Lahore High Court’s (LHC) decision. 

It was claimed by the FBR that under Section 31 of Wealth Tax Act if a taxpayer does not pay the tax within the prescribed period then he has to pay the additional tax. It contended that Kulsoom Nawaz and Shehbaz Sharif did not pay tax during the period 1994-95 and 1996-97. 

As the FBR could not prove that the demand notices were sent to the respondents, therefore the apex court dismissed the board’s request.