Federal Tax Ombudsman Saleem Akhtar has taken notice of a contractor's complaint that he had not been paid refund which was created some 20 years ago.
The contractor, Mir Aslam Khan of Abbottabad, said that two other claims of refund dating back to 1990-91 and 1997-98 were also unpaid, though he had made some 18 written requests.
In response, the department claimed that the refund of Rs 22,720 was issued on August 1, 1985.
As for the refund for 90-91, the department claimed that no refund was created, according to the record. And, for the refund claim for 97-98, the department took the plea that record showed neither the return had been filed nor any proceedings were finalised.
On examination of the record, the FTO observed that several refund applications were available on record, but none was responded to by the department. This the FTO observed was a clear case of neglect, inattention and delay.
Regarding payment of refund for 1984-85, the FTO noted that though the record shows that the refund has been paid, yet there is no official word if it was delivered to the complainant. The department could not produce any proof of actual payment.
The contention of the department that no refund was created for 1990-91 and it was now time-barred was not accepted by the FTO as the complainant had produced the document seeking the refund of Rs 11,598.
The FTO again observed that the tax officers showed negligence and had not examined the record or concealed the facts.
Regarding the return for 1997-98, which the department claimed had not been filed, the complainant produced receipt of postal UMS to the DCIT Nowshera . This showed that it was served on the department but proper record was not maintained.
The FTO has asked the director general of inquiries to hold a proper inquiry to identify the causes and persons responsible for the misplacement , non-delivery or possible misappropriation of the refund vouchers.
He has further urged the repayment of refund for 1990-91 should be calculated and compensation at 15 percent should also be paid.
As for the assessment year 97-98, the FTO has asked for a proper inquiry to ascertain the facts and if the return was filed, and proper proceedings are drawn according to law.
The FTO has asked for compliance of the recommendations within 45 days.