AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

ISLAMABAD: Appellate Tribunal Inland Revenue Islamabad Bench (ATIR) held that Federal Board of Revenue’s field formations have adopted a new strategy to block refunds on the basis of “time limitation” issue and reclassification of tax nature.

In this regard, the ATIR, in its new order, observed that field formations are violating High/Supreme Court orders and rejecting refunds based on two primary grounds time limitation issue and reclassification of tax nature.

It is reliably learnt that a landmark order has been issued by the ATIR wherein the matter has been referred to the Chairman FBR with the observation that in the fiscal statutes, the superior courts have criticized the FBR for using technicalities or limitations to deny legitimate refunds.

CTO actions undermine taxation system’s integrity: ATIR

When contacted tax lawyer Khurram Shahzad Butt told this correspondent that ATIR wisely observed that FBR is involved in denying the taxpayer’ right of refund. The ATIR held that refund claims are being dismissed due to purported time limitations, despite compliance with legal timelines and High/Supreme Court directives and during refund proceedings, the FBR is altering the classification of taxation to treat adjustable/refundable tax as a final tax, unjustly denying rightful refunds in the garb of Section 170.

ATIR order states, “Considering the sensitivity of the matter, the concerned Zonal CIR, Add CIR, and the author of the impugned orders were also called to appear before the court in person with the complete records. The department’s representative also presented written comments supporting their position and stated that previous unchallenged orders passed by superior IRS functionaries under Sections 122(1)/177/214C and 122(5A) of the Ordinance were incorrect. Regarding the binding order passed by the Apex Court in the Honda Atlas case, all three IRS officers stated that this order was not binding upon them and was thus rightly ignored and not discussed in the refund rejection orders.

The withholding refunds on technical grounds is viewed unfavorably by courts. Public authorities, such as the Inland Revenue, should not use such pleas to defeat just claims. The governments and public authorities should avoid relying on technicalities to deny legitimate claims and should act fairly and justly towards citizens.

The courts will uphold technical pleas only if they are well-founded and based on concrete evidence. Technicalities should not be used to deny refunds of taxes paid by mistake or otherwise. The taxpayer is entitled not only to a refund but also to compensation or interest on the delayed refund, ATIR order added.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Aamir Jul 26, 2024 08:25am
Who would want to do business in such an environment.
thumb_up Recommended (0)