Background

The issue arose when a taxpayer, Khurram Shahzad Butt, requested copies of minute or order sheets prepared during his tax assessment proceedings by the Chief Commissioner Inland Revenue’s (CCIR) office in Islamabad. These documents are critical as they detail the adjudicatory process and rationale behind tax decisions. However, the CCIR denied access, classifying them as internal records inaccessible to taxpayers.

This refusal prompted allegations that the tax authorities are undermining transparency and potentially violating legal precedents. Critics argue that withholding such records contradicts constitutional guarantees of information under Article 19A, which grants citizens the right to access public information.

Legal Context

The petitioner contends that the denial of access to order sheets constitutes contempt of Supreme Court and High Court rulings. He cited the Supreme Court’s verdict in Mukhtar Ahmad Ali vs. The Registrar (2023 SCP 312) and Lahore High Court’s decision in Waheed Shahzad Butt vs. FOP (PLD 2016 Lah. 872), both of which emphasized the public’s right to information in administrative and judicial matters.

The Islamabad High Court acknowledged these concerns in its order, noting:

“Petitioners are entitled to a copy of such order sheets as they reflect the manner in which the adjudicatory process has been conducted by the taxation authorities.”

IHC’s Directions

The court ordered the respondents, including the FTO and FBR chief, to submit para-wise comments and reports within seven days. Additionally, responsible officers have been directed to appear at the next hearing on January 23, 2025, with records from the assessment proceedings.

The court highlighted that taxpayers have a legitimate right to access documents detailing how tax assessments are conducted, as this is integral to ensuring a fair and transparent process.

Reaction

Khurram Shahzad Butt, the petitioner, described the classification of order sheets as confidential as a violation of court orders and a move against the principles of transparency. He accused tax officials of disregarding the judiciary’s directives to maintain opacity in their operations.

Broader Implications

This case underscores a significant issue within Pakistan’s tax administration system: the balance between confidentiality and transparency. The outcome could set a precedent for access to administrative records, potentially increasing accountability within the FBR and other tax authorities.