FTO orders’ implementation: IHC issues show cause notice to CIR for filing false statements

ISLAMABAD: Islamabad High Court (IHC) has issued a show cause notice to the Commissioner-Inland Revenue (IR) Corporate Tax Office, Islamabad for filing false statements before the IHC in a matter of implementation of orders passed by Federal Tax Ombudsman (FTO).

It is reliably learnt that a strict order has been passed by IHC in a contempt of court petition against FBR Commissioner, CTO, Islamabad, to appear in person on August 29, 2024.

IHC order states “Let a show-cause notice be issued to respondent (Muhammad Faisal Mushtaq Dar, CIR, Islamabad), to appear in person and explain to the Court as to why contempt proceedings should not be initiated against him for making a false representation in Writ Petition and for failure to submit to the Court that the recommendation made by FTO in order to revisit the order passed under section 120(4) has not been complied with”.

When contacted tax lawyer Waheed Shahzad Butt, who represented the case of the company, told Business Recorder that earlier in this case appellate tribunal inland revenue (ATIR) observed that it is fundamental that all statutes be applied with fairness and justice, and public functionaries are constitutionally mandated to act in a just and fair manner.

The CTO is involved in deceiving tax system and circumventing the course of justice in violation of the directions of the Chief Justice of IHC in tax refunds matters. Unfortunately, in the instant case CIR, Add-CIR and ACIR blatantly disregard the binding judgments of the Apex Court without any fear of accountability. There is no room for “unfettered discretion” in the fiscal laws of this country, and arbitrary exercise of discretionary powers must be invalidated Tax Department made a false representation to the Court on the basis of which the petition was disposed of.

Petitioner stated that a complaint filed before the FTO, which was decided, in which it was recorded that the petitioner had filed its tax return for the tax year 2018 and subsequently directed the Tax Department to revisit its order passed under section 120.

Copyright Business Recorder, 2024