| Case ID |
11aacdb1-0b60-40b3-86f4-f092a2a69091 |
| Body |
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| Case Number |
Complaint No.66/MLN/IT(44)554 of 2016 |
| Decision Date |
Jun 23, 2016 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman directed the Federal Board of Revenue to ensure that the refund claim of Rs.966,344, which was due on account of several tax withholdings, is settled within three weeks. The Ombudsman emphasized that the verification process should not be open-ended and must be completed in a timely manner as prescribed under Section 170(4) of the Income Tax Ordinance, 2001. Additionally, compensation for delayed payment under Section 171 was mandated, and a compliance report is to be submitted within the following seven days. This decision highlights the importance of timely processing of tax refunds and the accountability of tax authorities. |
| Summary |
This case concerns the complaint filed by Messrs Chicago Metal Works (Pvt.) Ltd. regarding the non-payment of a tax refund amounting to Rs.966,344 for the tax year 2015. The refund was due to various tax withholdings, including advance tax and taxes on goods and services. The Federal Tax Ombudsman found that the revenue authorities had initiated a verification process but failed to complete it within the statutory timeframe, thereby constituting maladministration. The Ombudsman directed the FBR to expedite the refund process and ensure compliance with the stipulated legal provisions. This case underscores the critical need for efficiency and accountability in tax administration, particularly in refund claims. Taxpayers should be aware of their rights regarding timely refunds and the mechanisms available for recourse in cases of administrative delay. The decision serves as a precedent for similar future cases where taxpayers face undue delays in receiving due refunds. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Federal Board of Revenue
|
| Judges |
Abdur Rauf Chaudhry
|
| Lawyers |
Muhammad Daud Khan
|
| Petitioners |
Messrs Chicago Metal Works (Pvt.) Ltd.
|
| Respondents |
The Secretary, Revenue Division, Islamabad
|
| Citations |
2016 SLD 1198,
2016 PTD 2089
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
147,
148,
153,
231A,
235,
236,
170,
171,
170(4),
2(3)(ii)
|