LTO willing to return illegally recovered amount to IESO

ISLAMABAD: Due to strict intervention by the Islamabad High Court (IHC), Large Taxpayer Office (LTO) Islamabad is willing to reimburse huge funds recovered illegally through attachments of bank accounts of Islamabad Electric Supply Company (IESCO).

In this regard, the IHC has issued an order against the Federal Board of Revenue (FBR).

It is learnt that the LHC has summoned Member Operations FBR and Chief Commissioner in person in the matter of the recovery through bank attachments on January 25, 2024.

In IESCO writ petition IHC has ordered that CCIR, LTO and Member Operations, FBR appear before the Court and satisfy the Court as to why penal proceedings, including contempt of Court proceedings may not be initiated against officials serving within the FBR and the LTO for affecting illegal recoveries and further that the accounts of the FBR should not be attached to give effect to the orders of this Court.

IHC order stated that, “Mir Badshah Khan Wazir, Member Inland Revenue (Operations), has appeared and stated that FBR will look into the practice being followed by field formations whereby coercive recoveries are affected even when injunctive orders are in field and put together a policy that ensures that coercive recoveries that are not backed by the authority of law do not take place. Let him do so and file a report as to what corrective actions are proposed to be taken by FBR.

“Tax department is willing to reimburse the petitioner (IESCO) to the extent of coercive recoveries affected during such period when the injunctive orders were in field.

However, there is some confusion about the quantum of such amount and seeks some time to determine the amount and make the reimbursement.

The learned counsel for the petitioner has also filed a report. Let that become part of the Court record. Let him also hand over a copy to the learned counsel for the respondents. Let the matter be fixed for Feb 22, 2024,” IHC order added.

Copyright Business Recorder, 2024