ISLAMABAD: The Islamabad High Court (IHC) has rejected an order passed by the Federal Tax Ombudsman (FTO) and ruled that refund cannot be blocked due to pendency of any tax reference before the high court.
It is reliably learnt that a landmark order has been passed by IHC and ruled that merely because the petitioner chose to avail a remedy before the FTO who has stayed his hand for the time being doesn’t mean that the tax department has carte blanche to refuse to comply with the order of the Tribunal.
IHC order stated, “Contention that because a tax reference has been pending against the refund order passed by the Tribunal, wherein no injunctive order has been issued, a refund has not been processed.
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He has failed to adduce any provision of law or any case law, which establishes that the filing of a reference creating sufficient cause for the tax department to defy an order of the Tribunal which is in the field. Grievance emanates from the order of the FTO, who chose not to proceed further on grounds of maladministration pursuant to order given that the matter was subjudice. This is also insufficient basis for the question of maintainability of the petition.
The Tribunal’s order directed the tax authorities to process a refund that is in the field and has not been complied with. Merely because the petitioner chose to avail a remedy before the FTO who has stayed his hand for the time being doesn’t mean that the tax department has carte blanche to refuse to comply with the order of the Tribunal, IHC order added.
Copyright Business Recorder, 2024
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