A taxpayer's bank account attachment orders have been withdrawn voluntarily by the Federal Board of Revenue (FBR) officials, following timely intervention by the Federal Tax Ombudsman (FTO), before start of the first hearing of the case of mal-administration.
Sources told Business Recorder that FTO has taken up a serious complaint of an IT professional, whose bank account was attached without serving any statutory notice and thereafter continuation of bank attachment orders despite having vacation of tax demand order issued by competent authority.
FTO has initiated investigation against the mal-administration of tax functionaries of RTO Islamabad, for not de-attaching the bank accounts of a taxpayer despite vacation of demand by competent court. Now the RTO authorities have withdrawn the bank account attachment order even before attended any hearing in investigation initiated by the FTO.
The FTO has started investigation on the complaint filed by the said I.T professional through Lahore based lawyer Waheed Shahzad Butt and notices have been issued to the Secretary Revenue Division, Chief Commissioner, RTO, Islamabad, tax employee/public servant, Zone West, Islamabad, Commissioner Zone-III, Islamabad and Chief Commissioner.
The complainant states, instant complaint has been moved against the administrative excess and severe highhandedness of tax employee working in the Zone III (West) RTO Islamabad. Complainant was earlier employed in Islamabad and after resigning started his own business, however, due to certain unavoidable circumstances remained failed to continue its own business, therefore, again started employment. In the month of July 2016 a cheque issued by the Complainant from his personal bank account was returned dishonoured by the Bank with the strange remarks that "Bank Account has been attached by the order of the IRS official of Zone III, RTO, Islamabad".
After visiting the concerned RTO, a request was moved to tax employee with the categorical remarks that no order/demand note etc was ever issued/ served and attachment of bank accounts is not only highly unjust but unconstitutional. On 05.08.2016 certified copy of order dated 28.06.2014 has been issued/ served, wherein it has been revealed that a huge demand of income tax has been raised by the then tax employee, however, during the period June 2014 to June 2016 (long 24 months) there was complete silence from most vigilant IRS functionaries representing Zone III, Regional Tax Office, Islamabad. Being aggrieved appeal was preferred before the Commissioner (Appeals). On the basis of specific written request patently illegal demand was stayed in the light of provisions of Section 128(1A). Despite receiving the order, bank accounts were never de-attached by the tax employees working under the CIR and CCIR Islamabad. Thereafter, pending appeal was heard and decided in favour of complainant and demand was vacated for de-novo proceedings.
However, due to judicious intervention by the FTO, bank account attached order has been withdrawn by the RTO Islamabad authorities, even without attending a single hearing in investigation initiated by the FTO, sources added.