Multiple audit notices to senior citizen: FTO directs FBR to revisit orders under IT Ord

ISLAMABAD: The Federal Tax Ombudsman (FTO) has taken notice of the harsh treatment of the Federal Board of Revenue (FBR) to an old lady (senior citizen) by issuing multiple notices and ex-parte orders against her for the past many years.

An old lady and a compliant taxpayer before Tax Ombudsman was burdened with multiple notices for audit for the Tax Year 2016. She was engaged in textile manufacturing business, final showcause notice for compliance was issued.

However, the complainant applied for an extension which was rejected and an ex-parte order was passed creating demand of Rs2.7 million.

However, all the relevant details of purchases and expenses were not only filed but also duly examined by the officer but the ex-parte order was passed without considering the details available on record.

The complainant being aggrieved, took up the matter with the FTO.

In response, the chief commissioner–IR contended that the case of the complainant was selected under Section 214C of the Income Tax Ordinance, 2001. Subsequently, the ACIR issued notice to produce records for the purpose of audit but the taxpayer did not fulfill its statutory duty. However, in order to provide another opportunity to the taxpayer, show cause notice was issued. As the taxpayer failed to make any compliance, the order was passed under Section 121(1) on the basis of failure to provide explanation.

According to the findings of the FTO, the issue was not assessment of income and determination of tax liability.

Copyright Business Recorder, 2022