The Federal Board of Revenue (FBR) has cautioned the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to carefully issue income tax assessment orders against the registered persons to avoid rejection at the level of Appeals Commissioners and Appellate Tribunals.
Sources told Business Recorder here on Saturday that certain income tax assessment orders had been rejected at the first level of appeals--Appeals Commissioners. The FBR has expressed concern over the weak income tax assessment orders issued in the field formations having revenue implications.
The weak assessment orders did not sustain at the level of the Commissioners Appeal. In order to avoid such a situation in future, the FBR has directed the Chief Commissioners of LTUs and RTOs to carefully draft income tax assessment orders under the Income Tax Ordinance 2001, sources added. During the last Chief Commissioners' Conference, FBR Member (Inland Revenue) had expressed concern on age-old PAC/DAC matters.
FBR Member (Legal) pointed out the weaknesses in the orders passed by the field officers and expressed that these orders did not stand even the first test of Appeal. Based on detailed discussions, it was decided that all pending audit paras shall be pursued diligently. Audit objections are to be taken seriously and settled well in time, lest they become DAC/PAC matters. Field formations shall carefully pass assessment orders, keeping in view procedural and legal aspects, the FBR added.