Bank statement alone not proof of income, rules Supreme Court
Pakistan
SC bench rules that unverified or incomplete data could not be the basis for legal action
ISLAMABAD (Dunya News) – In a major decision, the Supreme Court of Pakistan has ruled that a bank statement alone is not enough to prove someone’s income.
The verdict came during a case heard by a two-member bench led by Chief Justice Yahya Afridi, with the judgment penned by Justice Shafi Siddiqui.
The top court made it crystal clear that mere transfer of funds or financial transactions in a bank account could not be treated as solid proof of income.
According to the judgment, issuing a tax notice without clear and reliable evidence was against the law, and tax assessments could not be made based on suspicion or guesswork.
The court said that just because someone had money in their bank account did not mean it was undisclosed income.
There must be specific and credible information directly linked to taxable income before taking any action.
Calling out the tax department, the court declared its review proceedings illegal and quashed the reassessment attempt.
The bench ruled that unverified or incomplete data could not be the basis for legal action.
“Every piece of information must be properly checked,” the court emphasised, adding that any proceedings should be backed by transparent and trustworthy evidence.
The case had reached the Supreme Court after a citizen challenged the Federal Board of Revenue’s (FBR) move to reassess taxes based solely on their bank statements.
The FBR had treated the bank record as income and kicked off fresh proceedings, which the court has now struck down.
The ruling is seen as a big blow to arbitrary tax probes and a clear message that the tax authorities must stick to the law and not jump to conclusions.
The Supreme Court wrapped up the case by stating that tax laws should not be misused, and citizens should not be harassed without proper legal grounds.
