ISLAMABAD: The tax advisors have asked the Federal Board of Revenue (FBR) to instruct its field formations to adopt all modes of service of notices to the taxpayers, under the IRIS system, before passing of ex-parte assessment orders.
In this regard, Javed Iqbal Qazi Advocate Supreme Court of Pakistan has written a letter to the FBR Chairman, highlighting the issue of service of notices to the taxpayers.
According to tax advisor’s communication to the FBR, the matter regarding service of notices under IRIS system is being followed by the Assessing Officers i.e. Inland Revenue Officers (including Assistant Commissioner Inland Revenue and Deputy Commissioner Inland Revenue), the Additional Commissioners Inland Revenue and Commissioners Inland Revenue-Appeals.
It is submitted that service through IRIS system is one of the mode of service and not the final mode under section 218 of the Income Tax Ordinance, 2001, Qazi stated.
Under Section 218 of the Income Tax Ordinance, 2001, service of notices is to be made under following modes:
“218. Service of notices and other documents.— (1) Subject to this Ordinance, any notice, order or requisition required to be served on a resident individual (other than in a representative capacity) for the purposes of this Ordinance shall be treated as properly served on the individual if –
(a) personally served on the individual or, in the case of an individual under a legal disability or a non-resident individual, the representative of the individual;
(b) sent by registered post or courier service to the place or to the individual’s usual or last known address in Pakistan;
(c) served on the individual in the manner prescribed for service of a summons under the Code of Civil Procedure, 1908;
(d) served on the individual electronically in the prescribed manner.
(2) Subject to this Ordinance, any notice, order or requisition required to be served on any person (other than a resident individual to whom sub-section (1) applies) for the purposes of this Ordinance shall be
treated as properly served on the person if – (a) personally served on the representative of the person; (b) sent by registered post or courier service to the person’s registered office or address for service of notices under this Ordinance in Pakistan, or where the person does not have such office or address, the notice is sent by registered post to any office or place of business of the person in Pakistan;(c) served on the person in the manner prescribed for service of asummons under the Code of Civil Procedure, 1908 or (d) served on the individual electronically in the prescribed manner.
(3) Where an association of persons is dissolved, any notice, order or requisition required to be served under this Ordinance on the
association may be served on any person who was the principal officer or a member of the association immediately before such dissolution.
(4) Where section 117 applies, any notice, order or requisition required to be served under this Ordinance on the person discontinuing the business may be served on the person personally or on any individual who was the person’s representative at the time of discontinuance.
(5) The validity of any notice issued under Income Tax Ordinance or the validity of any service of a notice shall not be called into question after the return to which the notice relates has been furnished or the notice has been otherwise complied with.”
Qazi highlighted that as the period for completion of assessment for Tax Year 2018 is being barred by time on June 30, 2024. It is therefore, requested that the field formations may be instructed to adopt all modes of service to avoid passing of ex-parte assessment orders.
The issuance of appropriate directions will not only improve the working of the FBR field officers but will also minimize the quantum of ex-parte orders resulting into lesser burden on Appellate authorities.
It is further requested that all Inland Officers be directed to pass assessment orders purely on merits and these should not be harsh/against the law and based on conjecture and surmises.
The direction from the FBR will not only improve the quality of assessment orders but will also create judicious demand of tax resulting into batter collection of tax as compare to the last year.
An early issuance of necessary directions in this respect will be highly appreciated, Qazi added.
Copyright Business Recorder, 2024
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