ISLAMABAD: Commissioner Inland Revenue (Appeals) decided 25,000 cases of aggrieved taxpayers and granted tax relief in 71 percent cases and confirmed 29 percent cases in favour of the tax department during the last fiscal year.

Sources told Business Recorder here on Friday that there is a 175 percent increase in the number of cases filed with the Commissioner Appeals against the decisions of the tax department. The burden of cases on the Commissioner Appeals has been considerably increased in the recent past but the FBR has never interfered in the working of the Commissioner Appeals.

The Commissioner IR Appeals has three options to decide the cases. First, partially or fully delete the amount raised by the tax department. Second, Commissioner IR Appeals should specify the reason amount to be deleted.

The Commissioner Appeals has the authority to annul the whole amount involved in the case. Third, the Commissioner Appeals can partially or wholly upheld the demand created by the tax department. Recently, the chairman Senate Standing Committee on Finance has summoned the commissioner appeal Khyber-Pakhtunkhwa in the next meeting.

The chairman of the committee said that the commissioners of all the provinces would be called to the committee to know the details and issues regarding such appeals. The chairman committee sought a detailed report from the FBR officials on issues pertaining to such appeals.

The FBR high-ups stated that the FBR has never issued instructions to field formations/Commissioners (Appeals) for interfering in the judicial process of Commissioners (Appeals). The instructions issued to the Commissioners (Appeals) are of advisory nature and do not place Commissioners IR (Appeals) under the administrative control of the Chief Commissioners.

According to a clarification issued by the FBR here on Thursday, while explaining the reason of writing the letters, the FBR referred to the video link conference of the FBR that no such directions have been issued with the purpose to interfere in the judicial process of Commissioners (Appeals). The FBR has further clarified that the office of Commissioner (Appeals) is an independent judicial forum.

The instructions are of advisory nature and do not place Commissioners IR (Appeals) under the administrative control of Chief Commissioners or field formations. The purpose of the instructions was to highlight legal and factual shortcomings of orders of the officers to help improve quality of assessment orders.

This will help reduce unnecessary litigation, as weak assessment orders do not stand the test of appeal and burden the taxpayers as well as the department with unnecessary litigation. The FBR has further clarified that in view of the increasing workload of the Commissioners IR (Appeals), the said letter is also being withdrawn to allow them to concentrate more on timely disposal of pending appeal cases, the FBR added.

Copyright Business Recorder, 2021