The High Court on Thursday rejected a writ petition filed by Grameen Kalyan, a company owned by former Chief Adviser Prof Muhammad Yunus, challenging the National Board of Revenue’s (NBR) demand for Tk 666 crore in taxes.

The court’s order means Grameen Kalyan must pay Tk 666 crore in taxes for five assessment years.

The HC bench of Justice Md Mozibur Rahman Miah and Justice Rezaul Karim passed the order.

Barrister Abdullah Al Mamun and Barrister Fida M Kamal appeared for Grameen Kalyan, while Deputy Attorney General Abdus Samad Azad represented the state.

Mamun said they will appeal against the judgement before the Appellate Division of the Supreme Court after receiving its full text.

According to Azad, Grameen Kalyan and Grameen Telecom had reached an agreement under which Grameen Telecom would provide financial assistance to Grameen Kalyan.

In return, Grameen Telecom agreed to provide Grameen Kalyan with 42.50 percent of the profit it earned from dividends on its shares in Grameen Kalyan, he said.

Later, the income tax authorities reopened Grameen Kalyan’s tax file under Section 120 and found that tax had not been deducted at source from the income received by Grameen Kalyan from Grameen Telecom, the deputy attorney general said.

The matter was subsequently taken to the tax commissioner through a revision petition, against which Grameen Kalyan filed a writ petition with the High Court.

After hearing the matter, the court on Thursday discharged the rule, upholding the tax department’s decision, Azad said.

The NBR’s tax demand relates to five assessment years -- 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17.

Grameen Kalyan filed two separate writ petitions in 2017 challenging the legality of the NBR’s tax demands for those assessment years. Following preliminary hearings, the court issued rules in the cases.

After reassessment, the tax commissioner determined that Tk 666 crore was payable for the five assessment years. Grameen Kalyan subsequently challenged the legality of the decision through separate writ petitions.

After hearing the matters on their merits, the High Court rejected the writ petitions on August 4, 2024.

However, following the change of government on August 5, 2024, the High Court on August 29 withdrew that judgement, which had ordered Grameen Kalyan to pay Tk 666 crore, and sent the case records to the Chief Justice.

The case was subsequently assigned to a new bench.