Recovery of tax arrears: ATIR detects serious violations of law by FBR
ISLAMABAD: The Appellate Tribunal Inland Revenue, Islamabad (ATIR) has found some serious violations of law in the recovery of tax arrears by the Federal Board of Revenue (FBR) and summoned FBR’s Member Operations Inland Revenue and Member (Legal) to appear before the ATIR on September 7, 2022.
It is learnt that an aggrieved taxpayer of Large Taxpayer Office, Islamabad (LTO) through Khurram Shahzad, registered ITP-FBR has moved an application before the ATIR against the recovery of arrears notices issued by LTO Islamabad officials for not following the FBR’s instructions. The FBR had issued the instructions to avoid the coercive measures for recovery of disputed tax demands until the case has passed the test of appeal at the level of the Commissioner Appeals.
In this connection, ATIR Islamabad has passed an order against the LTO, Islamabad and summoned the top officers of FBR including Member (Legal) and Member Operations-IR FBR to appear before ATIR on September 7.
ATIR order states: “The titled appeal along with stay application has been filed by the applicant against the interim order in respect of tax year 2015 on the grounds set forth in the memo of appeals. The titled case came for a hearing on 31.08.2022. The authorized representative at the very outset apprised that the FBR vide Circular-Letter dated 12.10.2021 categorically asked the concerned Chief Commissioners (IR) to avoid unnecessary hazards of litigation and coercive measures for recovery of disputed tax demands until the case has passed the test of appeal at the level of the Commissioner Appeals. It further contended that the said letter is binding upon the lower authorities in terms of section 206 of the Income Tax Ordinance, 2001.
Under the peculiar circumstances of the case and to resolve the issue once and for all in the light of the judgment of the Supreme Court titled Pakistan through Chairman FBR vs Hazrat Hussain (2018 PTD 1204), the AR (Roster) is directed to issue the notices to the learned Member (Legal) and FBR (Operations) IR, FBR, Islamabad with the directions to appear before the court himself of through the authorized representative on 07.09.2022: ATIR order added.
Copyright Business Recorder, 2022
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