Delay in issuance of income tax refunds: PHC issues notices to President, FBR chief

ISLAMABAD: A division bench of the Peshawar High Court (PHC) has issued notice to the office of the President of Pakistan and Chairman Federal Board of Revenue (FBR) to submit a reply in a petition seeking compensation against delay in issuance of income tax refunds.

It has been learnt that PHC has issued notice to the office of the President of Pakistan and Chairman FBR to file their para-wise comments within a fortnight. The bench issued a notice in the petition filed by the educational Board of KPK through tax lawyer Waheed Shahzad Butt, seeking compensation out of salaries of FBR Commissioner Inland Revenue for the delay in issuance of the refund due on the basis of direct relief allowed by court.

The petitioner questioned the working of FBR to illegally retain (for a long time) the amount collected through state machinery by framing a patently illegal assessment order from an artificial juridical person engaged with the noble profession of education in the province of KPK, which was later issued solely due to lawful intervention by the PHC but blatantly failed to issue the lawful compensation under the law for meaningful delay in issuance of a lawful refund.

Petitioner further requested to declare that the act of Respondents (FBR) to hold the money for a long time, by using state machinery, is without jurisdiction and unconstitutional. The court should declare that the FBR is allegedly involved in misusing their authority for not returning the money/funds illegally snatched from the Petitioner within time prescribed by the law.

Copyright Business Recorder, 2021