Status quo on tribunal’s decision over tax payment by Dr Kamal’s law firm

The High Court on Tuesday directed to maintain the status quo for three months on the decision passed by the Taxes Appellate Tribunal in Dhaka regarding tax claim of Tk 60.98 million by the income tax authority from the ‘Dr Kamal Hossain and Associates’, a law firm led by renowned lawyer Dr Kamal Hossain. 

The High Court also issued a rule asking the respondents to explain in one week why the decision of the tribunal rejecting an appeal against the income tax department’s assessment that imposed Tk 60.98 million as tax for the law firm in 2018-2019 tax year should not be declared illegal. 

The High Court bench of Justice Farah Mahbub and Justice S M Maniruzzaman passed the order after hearing a writ petition filed by Dr Kamal Hossain and Associates challenging the Taxes Appellate Tribunal’s decision. 

The income tax department after an assessment fixed Tk 60.98 as tax in the tax assessment year of 2018-2019 for the ‘Dr Kamal Hossain and Associates’. 

Barrister Ramzan Ali Sikder who appeared in the court hearing on behalf of Dr Kamal Hossain and Associates said, “By showing lawyers’ fee we filed the income tax return. Later, the tax department increased the amount of our tax a lot. In this context, we filed an appeal to the Appellate Tribunal. The assessment of the tax department remained in force on the appeal. 

As per the rules, 10 per cent of the claimed tax has to be deposited there. We have shown that the amount comes to around Tk 8.3 million. But we have already deposited more than Tk 7.6 million. But the Tribunal has said that 10 per cent has not complied. But the tribunal did not say the amount. Then we filed a review petition which was also been rejected. Then we moved to the High Court and filed a writ petition.” 

The law firm partner Sharif Bhuiyan filed the writ petition challenging the Taxes Appellate Tribunal’s decision that rejected the firm’s appeal against the tax department’s demand for showing assets of Tk 201.1 million owned by Dr Kamal Hossain and Associates. 

Barrister Ramzan Ali Sikder also said, “During the hearing stage in HC we come to know that we have to repay some more amounts to comply with the 10 per cent deposit. As such, we deposit another amount of Tk 0.87 million today (Tuesday). Now it can be said that the condition of 10 per cent deposit has been fulfilled.” 

After hearing the parties, the court stayed the Appellate Tribunal's order for three months and issued a rule, added the lawyer.

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