HC clears way for NBR to recover Tk 666 crore tax from Grameen Kalyan

The High Court today released the full verdicts rejecting two writ petitions filed by Grameen Kalyan challenging National Board of Revenue (NBR) orders that reassessed its income tax liabilities at around Tk 666 crore, clearing the way for the authorities to recover the dues.

Grameen Kalyan is a non-profit charitable organisation founded by former interim government chief adviser and Nobel laureate Professor Muhammad Yunus.

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HC bench of Justice Md Mozibur Rahman Miah and Justice Rezaul Karim, in one of the judgments, said, “The respondents (NBR chairman and other officials concerned) are directed to take necessary steps to realise the unpaid tax from the petitioner in accordance with law as expeditiously as possible. Let a copy of this judgment and order be communicated to the respondents forthwith.”

In the other verdict, the same bench said, “The respondents are directed to do the needful relating to the unpaid tax from the petitioner by issuing necessary demand notice immediately. Let a copy of this judgment and order be communicated to the respondents forthwith”.

The judges observed in the verdict that, under Section 121A(4)(b) of the Income Tax Ordinance, 1984, Grameen Kalyan had not paid tax when filing returns for the assessment years challenged in the writ petitions under Section 75(2)(d)(iii). It was therefore legally bound to pay tax under Section 74 of the ordinance and could not treat tax paid at source by Grameen Telecom as its own payment, they said.

Deputy Attorney General Abdus Samad Azad, who argued for the state, told The Daily Star that the Deputy Commissioner of Taxes, Taxes Zone-14, the second respondent in the case, was expected to receive the judgments within the next day or two.

After receiving them, the official would issue a notice under Section 214 or Section 221 of the Income Tax Act, 2023, demanding Tk 666 crore in income tax from Grameen Kalyan for the tax years from 2012-13 to 2016-17, he said.

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If the organisation fails to pay the outstanding dues, the NBR can take necessary action, including confiscating its bank accounts and other properties under Section 221 of the law, Azad added.

Grameen Kalyan's lawyer, Barrister Khaja Tanvir Ahmed, said his client would appeal against the High Court verdict to the Appellate Division of the Supreme Court.

“If the Appellate Division stays the High Court verdict, Grameen Kalyan will not have to pay the amount claimed by the NBR,” he said, adding that Prof Yunus had not been involved with any Grameen-related organisations since 2024.

On September 10, the High Court bench of Justice Md Mozibur Rahman Miah and Justice Rezaul Karim delivered the verdicts after hearing the petitions.

Earlier, on August 4, 2024, another High Court bench, comprising Justice Muhammad Khurshid Alam Sarkar and Justice SM Maniruzzaman, rejected the same writ petitions. Justice Sarkar was later removed on the recommendation of the Supreme Judicial Council following an inquiry into allegations against him.

The bench recalled its verdict on August 29, 2024, and sent the relevant documents to then chief justice Syed Refaat Ahmed on September 8 that year for a decision.

Speaking to The Daily Star in 2024, Grameen Kalyan's lawyer Sarder Jinnat Ali said the bench had recalled its verdict because Justice Maniruzzaman, the junior judge on the bench, felt embarrassed about writing the judgment as he had earlier been involved in the case as a lawyer.

The then chief justice subsequently assigned the writ petitions to the bench led by Justice Md Mozibur Rahman Miah for a fresh hearing.