Reopening Completed Tax Assessments Solely for Document Verification Not Permissible: High Court
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| Supreme Court of Bangladesh |
The Court made the observation while disposing of Writ Petition No. 6249 of 2025, filed by Jahurul Islam Medical College and Hospital against the National Board of Revenue (NBR) and others. The judgment was delivered on 21 July 2026 by a High Court Division bench comprising Justice Sardar Md. Rashed Jahangir and Justice Kazi Waliul Islam.
Background of the Case
According to the case records, the concerned tax authority issued several notices on 12 December 2024 to Jahurul Islam Medical College and Hospital under Section 212 of the Income Tax Act, 2023. Through those notices, the authority sought to reopen the assessments for the assessment years 2016–2017, 2017–2018, 2018–2019 and 2020–2021.
The notices alleged that certain income of the petitioner might have escaped assessment and required the institution to submit relevant income tax returns and supporting documents. The authority also sought verification of various documents relating to the petitioner's income.
Challenging the legality of those notices, the institution filed a writ petition under Article 102 of the Constitution of Bangladesh. At the time of issuing the Rule Nisi, the High Court stayed the operation of the impugned notices.
Court's Observations
Upon examining the relevant provisions of Section 212 of the Income Tax Act, 2023, the Court observed that the provision empowers the Deputy Commissioner of Taxes to take steps where there are reasonable grounds to believe that an assessee has escaped payment of any amount payable under the Act for a particular assessment year.
In such circumstances, the authority may reopen the assessment and take necessary steps to determine the assessee's total income or tax liability.
However, the Court clarified that Section 212 does not authorise the Deputy Commissioner of Taxes to reopen a completed assessment merely for the purpose of verifying relevant documents or the source of income.
The Court further observed that, in the present case, the concerned authority had exceeded the scope of its statutory authority by seeking to reopen the petitioner's past and completed assessments for the purpose of verifying income-related documents.
Decision of the Court
Considering the above findings, the High Court made the Rule Nisi absolute.
Consequently, the notices issued under Section 212 of the Income Tax Act, 2023, along with the relevant letters and communications dated 12 December 2024, concerning the assessment years 2016–2017, 2017–2018, 2018–2019 and 2020–2021, were declared to have been issued without lawful authority and to be of no legal effect.
Legal Significance
The judgment clarifies the limits of the tax authorities' power under Section 212 of the Income Tax Act, 2023. It establishes that the power to reopen a completed tax assessment cannot be exercised merely as a general mechanism for examining income-related documents or verifying the source of income.
The decision also underscores that statutory powers relating to reopening tax assessments must be exercised within the limits and conditions prescribed by law.
Case Title: Jahurul Islam Medical College and Hospital vs. National Board of Revenue and Others
Case Number: Writ Petition No. 6249 of 2025
Court: High Court Division, Supreme Court of Bangladesh
Bench: Justice Sardar Md. Rashed Jahangir and Justice Kazi Waliul Islam
Date of Judgment: 21 July 2026
Legal Provision: Section 212 of the Income Tax Act, 2023; Article 102 of the Constitution of Bangladesh.
BD Law Post/Masum
