Legal Case Summary

Case Details
Case ID 1a9e6ce6-bf12-47a8-90c7-cda2be473e39
Body View case body.
Case Number Nos. 0052 & 0064/OM/2022
Decision Date Sep 20, 2022
Hearing Date
Decision The Federal Tax Ombudsman ruled that the rejection of claims for refund adjustments without conducting proper desk audits constitutes maladministration. The Ombudsman emphasized the need for uniform guidelines for processing refund claims and mandated that no claims be rejected without thorough verification and due process. The decision highlighted the importance of timely disposal of refund applications and the responsibility of the Department to ensure proper handling of taxpayer claims. This ruling aims to prevent harassment and unnecessary litigation for taxpayers seeking to adjust their tax liabilities against valid refund claims.
Summary In this case, the Federal Tax Ombudsman addressed the issue of refund claim adjustments by taxpayers against their admitted tax liabilities for the years 2016-2021. The Ombudsman noted that the Federal Board of Revenue (FBR) had provided data on numerous refund claims but failed to issue uniform policy guidelines for processing these claims. The case highlighted instances of maladministration, including the rejection of claims without proper audits and the issuance of show cause notices without adequate justification. The Ombudsman ruled that such practices not only caused harassment to taxpayers but also led to prolonged litigation, emphasizing the need for clear instructions and a standardized approach to handling refund claims. The case underscores the significance of taxpayer rights and the necessity for the tax department to adhere to legal provisions while processing claims.
Court Federal Tax Ombudsman
Entities Involved Not available
Judges Dr. Asif Mahmood Jah
Lawyers Badurddin Ahmad Quraishi, Muhammad Tanvir Akhtar
Petitioners Not available
Respondents THE SECRETARY, REVENUE DIVISION, ISLAMABAD
Citations 2022 SLD 1164, (2022) 126 TAX 1
Other Citations Not available
Laws Involved Federal Tax Ombudsman Ordinance, 2000, Income Tax Ordinance, 2001
Sections 2(3)(1)(a)(b)(ii), 10(4), 114, 120, 122(5A), 122(9), 164(2), 170(1), 170(3), 170(4), 221, 221(4)