ISLAMABAD: Appellate Tribunal Inland Revenue Islamabad Bench (ATIR) has held that the Corporate Tax Office, Islamabad (CTO) is involved in deceiving tax system and circumventing the course of justice in violation of the directions of the Chief Justice of Islamabad High Court in tax refunds matters.

It is reliably learnt that a landmark order has been issued by the ATIR wherein it observed that the department conceded before the Chief Justice of IHC in Writ petition by stating in their comments that withholding tax (WHT) is an adjustable tax in the hands of the petitioner; however, despite this acknowledgment, the department adopted a new position in the impugned orders.

When contacted tax lawyer Waheed Shahzad Butt told this correspondent that ATIR wisely observed that it is fundamental that all statutes be applied with fairness and justice, and public functionaries are constitutionally mandated to act in a just and fair manner.

CTO actions undermine taxation system’s integrity: ATIR

Every public functionary is obligated to adhere to the commands of the Constitution, and no one should suffer due to the incompetence of public officials. Public functionaries are duty-bound to act in accordance with the law, Waheed added.

ATIR order stated, “Unfortunately, in the instant case CIR, Add-CIR and ACIR blatantly disregard the binding judgments of the Apex Court without any fear of accountability. During hearings, they assert that the unreported Supreme Court order is not binding on them. There is no room for “unfettered discretion” in the fiscal laws of this country, and arbitrary exercise of discretionary powers must be invalidated”.

The department conceded before the Chief Justice of IHC that WHT under Section 153 is an adjustable tax in the hands of the petitioner; however, despite this acknowledgment, it adopted a new position in the orders, seemingly to deceive the tax system. Comments filed by FBR before the Chief Justice clearly expose the reality of corruption and corrupt practices within the tax officials. These actions suggest a blatant disregard for accountability and an attempt to deceive the Chief Justice without consequences, ATIR ordered

Copyright Business Recorder, 2024