ISLAMABAD: President Arif Alvi has rejected three representations filed by the Federal Board of Revenue (FBR) against the three redressal orders issued by the Federal Tax Ombudsman (FTO) for issuance of refunds.

As per details, in one such case, Saifullah Khan claimed refund amounting to Rs0.053 million. He e-filed refund application; however, despite his repeated efforts the department failed to dispose of refund application within stipulated period. He, accordingly, took up the matter with the FTO by filing a complaint.

The FTO, while deciding the above complaint directed the commissioner IR Peshawar Zone to revisit the order, while exercising powers conferred under section 122A and to pass fresh order for tax year 2020 under section 170 (A) of the Income Tax Ordinance. The said orders of the FTO were later on challenged by the FBR before the President; however, the President has upheld the decision of the FTO and disposed the representation.

In another income tax case, the complainant engaged in manufacturing of vegetable ghee filed return of income for tax year 2020 under section 114 (1) of the Income Tax Ordinance,2001 and claimed refund amounting to Rs63.40 million.

The refund arouses on account of excess tax deduction at source under sections 153 (1) (a), 231A, 235 and 236(1) (a) of the ordinance, the refund application for tax years 2020 was e-filed; however, despite repeated efforts of the complainant, the department failed to dispose of refund application and the complainant thereafter approached the FTO for redressal of his grievances.

Later on, while deciding the complaint, the FTO ordered the FBR to direct the commissioner –IR enforcement zone -1, LTO Lahore to complete the verification and settle complainant’s refund for tax year 2020. The FBR challenged the findings of the FTO before the President; however, the President has upheld the decision of the FTO and rejected the representation of the FBR.

In another similar case, the FTO’s recommendations regarding processing another Rs81.5 million income tax refund case was also upheld by the Presidency, while rejecting a representation filed by the FBR.

Copyright Business Recorder, 2022