| Case ID |
3d36d16e-d364-4981-8284-14600f7da364 |
| Body |
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| Case Number |
Complaint No. 320-K of 2001 |
| Decision Date |
May 21, 2001 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman directed the Central Board of Revenue (C.B.R.) to withdraw the Circular/Instruction Letter No. C.No.7(7)S.Asst./2001 dated 8-2-2001, which was found to be in conflict with the provisions of the Income Tax Ordinance. The Ombudsman ruled that the returns filed under the Self-Assessment Scheme during the extended period granted by the Deputy Commissioner of Income Tax (D.C.I.T.) should be accepted and assessed under the Self-Assessment Scheme. All actions taken in pursuance of the impugned Circular were to be withdrawn, and compliance was to be reported within thirty days of the receipt of the order. |
| Summary |
In the case of Universal Agro(Pvt.) Ltd. vs. Secretary Revenue Division, the Federal Tax Ombudsman examined the legality of C.B.R.'s Circular dated 8-2-2001, which stated that returns filed during an extended period would not be eligible for the Self-Assessment Scheme under the Income Tax Ordinance, 1979. The Ombudsman found this instruction arbitrary and contrary to established laws. The decision emphasized the importance of adhering to the law when determining tax obligations and the rights of taxpayers under the Self-Assessment Scheme, highlighting principles of fairness and legality. The ruling clarified that any return filed within the extended period granted by the D.C.I.T. should be recognized and assessed fairly, emphasizing the need for clear statutory guidance in tax law. This case reinforces the significance of judicial discretion in tax assessments and the need for the C.B.R. to align its instructions with the provisions of the Income Tax Ordinance, ensuring that taxpayers' rights are duly protected. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Central Board of Revenue,
Universal Agro(Pvt.) Ltd.
|
| Judges |
Justice (Retd.) Saleem Akhtar
|
| Lawyers |
Not available
|
| Petitioners |
Zulfiqar F. Haji, Director, Universal Agro(Pvt.) Ltd., Karachi
|
| Respondents |
Secretary, Revenue Division, Islamabad
|
| Citations |
2001 SLD 649,
2001 PTD 3907
|
| Other Citations |
1993 SCMR 274,
1993 PTD 69,
1992 SCMR 663
|
| Laws Involved |
Income Tax Ordinance, 1979,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
54,
55,
55(2),
55(3),
59,
34,
35,
36,
37,
38,
50,
53,
2,
2(3),
9,
9(2)(b)
|