IHC upholds FBR’s investigation and enforcement against medical college

ISLAMABAD, Nov 10 (APP):The Islamabad High Court (IHC) has dismissed petitions filed by WATIM Dental College and WATIM Medical College, upholding the Federal Board of Revenue’s (FBR) investigation and enforcement powers under Section 175 of the Income Tax Ordinance, 2001.

A division bench comprising Justice Raja Inaam Ameen Minhas and Justice Shahrukh Arjumand announced the verdict on petitions challenging investigation and visit authorisations issued on December 11, 2024, as well as the subsequent proceedings.

The court held that proceedings under Section 175 of the Income Tax Ordinance did not require any prior assessment or audit proceedings to be pending.

In light of a judgment of the Federal Constitutional Court, the bench observed that the initiation of proceedings under Section 175 was not conditional upon any previous proceedings.

It further ruled that the powers conferred upon the FBR under the said section were legally valid. The absence of assessment powers with the Directorate did not affect its investigative authority, the court added.

According to the judgment, WATIM Dental College received funds amounting to Rs1,053,540,081 in its bank accounts during tax years 2020 to 2023, while filing nil tax returns.

The court also noted that the Pakistan Medical and Dental Council’s approval was for 50 BDS students, whereas the WATIM School of Paramedics was an undisclosed activity.

The high court directed FBR officials to proceed in accordance with the law.

Advocate Hafiz Ehsan Khokhar represented the FBR in the case.