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ISLAMABAD: Islamabad High Court (IHC) has issued notices to Member Information Technology Federal Board of Revenue (FBR), Commissioner, Deputy Commissioner, Large Taxpayer Office (LTO) Islamabad, in a constitutional petition about alleged maladministration to delete three electronic notices issued under section 120(3) of the Income Tax Ordinance, 2001 through FBR electronic web portal “IRIS”.

It is reliably learned that a petition has been filed with the IHC through Advocate Waheed Shahzad Butt. After hearing the arguments, the IHC issued notices to the respondents directing them to submit their report and para-wise comments within two weeks and fix the hearing for June 1, 2023.

When contacted, petitioner’s lawyer Waheed Shahzad Butt stated that FBR must act fairly in dealing with taxpayers and to abide by the law governing it. If any benefit accrues to taxpayers under the law, it must not be withheld and the taxpayer’s and its own time and resources should not be wasted in futile litigation at the cost of taxpayer money. Frivolous litigation on the part of Government departments (FBR) also wasted the time of the ATIR, High Courts, and the Supreme Court of Pakistan.

IHC order states: “The petitioner alleges malfeasance on part of respondents. The learned counsel for the petitioner states that notices based on malafide were issued in exercise of authority under Section 120(3) for tax years 2014, 2015 and 2016, even though tax demand for such tax years had been finalized on the basis of an audit and the matter is presently pending before the learned Appellate Tribunal.

He states that the issuance of notices was challenged before the (FTO), who recommended that the notices be withdrawn. Such recommendation of the FTO was challenged by the tax department before the President, who dismissed the representation and upheld the order of the FTO. He states that subsequently the petitioner sought implementation of the order of the FTO.

Meanwhile, the respondents have deleted the notices issued under Section 120, without legal authority to prevent accountability. Let notices be issued to the respondents for June 1, 2023, who will file report and para-wise comments within a period of two weeks, IHC order added.

Copyright Business Recorder, 2023

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