Business
Tax authorities can raid without notice, FCC rules
• Judgement observes Section 175 can be invoked for enforcement of any provision of tax ordinance
• Ruling refers to use of word ‘enforcement’, implying that a ‘breach’ has occurred
• Courts can’t contradict if language of legislation is ‘unequivocal’, Justice Farooq holds
ISLAMABAD: The Federal Constitutional Court (FCC) ruled on Thursday that tax authorities can conduct raids and searches of taxpayers’ premises under Section 175 of the Income Tax Ordinance (ITO) 2001, even in the absence of any pending proceedings against them.
Headed by Justice Aamer Farooq, a three-judge FCC bench rejected a plea moved by M/s Sceptre Pvt Ltd against a Dec 24, 2025, Sindh High Court decision that had validated a tax raid on the petitioner’s premises.
The petitioner had challenged the raid conducted by tax authorities under Section 175. It said the section should be applied in case of ongoing proceedings, adding that a notice under Section 176, requiring certain documents and information, could not form the basis for a raid.
Authored by Justice Farooq, the judgement explained that Section 175 empowered the tax commissioner to act for the enforcement of any provision of the ordinance.
The words used by parliamentarians under the law are “enforcement”, and “enforcement” requires “breach”. When a law is breached, then it is “enforced”. If the statute had used the word “implement”, then the situation would have been different, the judgement said.
Thus, the examination of Section 175 shows that the words used were very clear and simple, that this provision can be invoked for the enforcement of any provision of the law, the judgement emphasised, adding that the SHC had correctly rejected the petitioner’s plea on the grounds of the precedent set in the earlier Agha Steels case.
Although the bench does not agree with the view expressed in the Agha Steels case, the petition is nevertheless liable to be dismissed, Justice Farooq observed.
Even if the requirements laid down in the previous case were not strictly followed, the mere fact remained that the tax commissioner — or an authorised officer — was empowered to act for the enforcement of the law under Section 175, he added.
In view of the referred provision of law and the factual aspects of the matter, the impugned judgment does not suffer from any infirmity warranting interference, Justice Farooq observed.
The cardinal rule of the construction of acts of parliament is that they should be construed according to the intention expressed in the acts themselves, Justice Farooq said, adding that the rationale for beginning with the ordinary and natural meaning of the statutory language was that legislation was often drafted to address specific situations in clear and straightforward terms.
In such instances, the words used are precise and are not intended to extend beyond their plain scope or to be expanded into broader contexts, he added.
Since the primary objective of statutory interpretation is to ascertain the intention of the lawmaker, the most appropriate and reliable method is to commence with the ordinary and clear meaning of the words used, as per the judgement.
“If the legislature says that a deed shall be ‘null and void to all intents and purposes whatsoever’, how can a court of equity say that in certain circumstances it shall be valid?” Justice Farooq observed.
The principle emerging from that dictum is clear: where the language of the legislature is express and unequivocal, the courts are not at liberty to qualify, dilute, or contradict it, he said.
Applying the same reasoning to the present case, when parliament has expressly provided that “in order to enforce any provision of the law, the commissioner or any authorised officer will at all times and without prior notice, have full and free access, including real-time electronic access to any premises, place, accounts, documents or computer”.
How can a court of law then read into the statutory provision to say that a proceeding must be pending before Section 175(1)(a) of the law to trigger the raid. The answer is that it cannot. Courts must be restrained from granting relief in a manner that runs contrary to clear and express statutory provisions, the judgement said.
Published in Dawn, February 27th, 2026
Pakistan’s benchmark KSE-100 index recovered modestly by 11:55am on Friday, rising 65 points from its previous close of 168,893.08 after plunging more than 1,000 points earlier in the morning session.
The index witnessed notable volatility, swinging between an intraday high of 169,379.97 points and a low of 165,811.87 points.
Trading activity remained reasonable, with volumes recorded at 173,907,577 shares, at a value of Rs12,913,331,068.
Among the most active stocks, Unity Foods Limited led the volumes chart, falling 9.96pc to Rs10.67 on 49,674,838 shares. It was followed by First National Equities Limited, which gained 0.66pc to Rs1.53 on 34,058,253 shares, and The Bank of Punjab, which declined 0.31pc to Rs31.71 on 28,048,100 shares.
On the gaining side, Gulistan Spinning Mills Limited emerged as the top advancer, climbing 19.42pc to Rs6.15. Media Times Limited followed with a 12.05pc increase to Rs6.60, while Power Cement (Pref) rose 10.02pc to Rs24.27.
Meanwhile, the decliners were led by LOADS Limited (Right), which plunged 53.12pc to Rs0.30. Trust Securities & Brokerage Limited (R) fell 10.53pc to Rs0.34, and Tri-Pack Films Limited slipped 10pc to Rs162.92.
This dip in the market comes as Pakistan has launched Operation Ghazab lil-Haq against the Afghan Taliban after “unprovoked firing” from across the border.
On Thursday, the benchmark index recovered slightly, gaining 4,266.79 points after this week’s previous sessions saw a sustained sell-off.
Pakistan’s benchmark stock index, the KSE-100, shed 1,080.97 points by 11:10am on Friday.
The index witnessed notable volatility, swinging between an intraday high of 169,379.97 points and a low of 165,811.87 points, compared to its previous close of 168,893.08 points.
Trading activity remained robust, with volumes recorded at 132,890,482 shares, translating into a turnover of Rs8,993,639,716.
Among the most active stocks, Unity Foods Limited led the volumes chart, falling 9.96pc to Rs10.67 on 48,673,774 shares. It was followed by First National Equities Limited, which gained 1.32pc to Rs1.54 on 22,290,789 shares, and The Bank of Punjab, which declined 1.29pc to Rs31.40 on 19,916,532 shares.
On the gaining side, Gulistan Spinning Mills Limited emerged as the top advancer, climbing 19.42pc to Rs6.15. Media Times Limited followed with a 12.05pc increase to Rs6.60, while Power Cement (Pref) rose 10.02pc to Rs24.27.
Meanwhile, the decliners were led by LOADS Limited (Right), which plunged 53.12pc to Rs0.30. Trust Securities & Brokerage Limited (R) fell 10.53pc to Rs0.34, and Tri-Pack Films Limited slipped 10pc to Rs162.92.
This dip in the market comes as Pakistan has launched Operation Ghazab lil-Haq against the Afghan Taliban after “unprovoked firing” from across the border.
On Thursday, the benchmark index recovered slightly, gaining 4,266.79 points after this week’s previous sessions saw a sustained sell-off.
ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of the Attock Cement Pakistan Ltd (ACPL) by Fauji Cement Company Ltd (FCCL) and Kot Addu Power Company Ltd (Kapco), following a Phase-I competition assessment conducted under the Competition Act 2010.
FCCL and Kapco filed a pre-merger application for the acquisition of controlling interest in Attock Cement from Pharaon Investment Group Ltd. The proposed acquisition is pursuant to Scheme of Compromises, Arrangement, and Reconstruction Agreement dated Jan 30, 2026.
Upon completion of the transaction, Fauji Cement and Kapco will acquire control of ACPL. FCCL, a subsidiary of Fauji Foundation, is a publicly listed company engaged in the manufacture and sale of cement and related products.
Kapco is a publicly listed energy company engaged in power generation and the APCL is a publicly listed cement manufacturer. The seller, Pharaon Investment Group Ltd, is an international investment holding company based in Lebanon.
CCP’s analysis noted that while there is a horizontal overlap between Fauji Cement and Attock Cement, the post-transaction market share would remain below the statutory dominance threshold, and the cement sector in Pakistan continues to have multiple established competitors.
CCP concluded that the proposed transaction is neither likely to create or strengthen a dominant position nor to substantially lessen competition or adversely affect the competitive structure of the market.
Published in Dawn, February 27th, 2026
کراچی میں دھند چھانے کی توقع، حدنگاہ متاثر ہونے کا امکان
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