Right to seek automated refunds: IHC issues notices to FBR chairman, others

ISLAMABAD: Islamabad High Court (IHC) has issued notices to Chairman Federal Board of Revenue and Chief Commissioner Inland Revenue Large Tax Office (LTO) Islamabad in a public interest petition seeking enforcement of fundamental rights to seek automated refunds from the FBR.

This needs implementation of a system which enables automatic refunds without formal refund applications by the taxpayers.

A public interest petition has been moved by a Rawalpindi based taxpayer/ ITP Khrurram Shahzad through tax lawyer Waheed Shahzad Butt before the IHC to seeks enforcement of the directions passed by a Division Bench of IHC requiring the FBR to take the steps mentioned in the order and also seeks enforcement of Section 170-A empowering the FBR to implement a system which enables automatic refunds without formal refund applications by the taxpayers.

LTO Islamabad: FTO unearths ‘wrongdoing’

When contacted, Waheed Shahzad Butt told this correspondent that the petitioner has come forward to seek the indulgence of IHC in order to uphold the supremacy of the Constitution and rule of law. The petitioner has locus standi to question the working and patently illegal acts of omission & commission by FBR tax employees to flout the law and contemptuous attempts to undermine the authority of IHC and intentionally ignored binding order.

Petitioner states: “IHC may accept the petition and directions may kindly be issued against the Respondents and other field formations heads (CCIRs) to explain under what authority of law they are avoiding to implement the binding order passed by IHC.

A thorough probe be initiated with respect to the conduct of Respondents to wilfully flout the law. Further prayed that FTO may be directed to constitute inspection/ investigation team.“

IHC order states: “This petition in the public interest seeks enforcement of the directions passed in para 25 by a Division Bench of this Court in the case titled CIR, LTU, Islamabad versus a bank requiring the FBR to take the steps mentioned in the said paragraph.

The petition also seeks enforcement of section 170-A empowering the FBR to implement a system which enables automatic refunds without formal refund applications by the taxpayers.

Issue pre-admission notice to respondents to depute a knowledgeable officer to appear in Court on the next date of hearing and to apprise the Court as to the steps taken in furtherance of the directions passed in the aforesaid ITR and, if deemed appropriate, to instruct counsel to assist such officer for any objections to the maintainability of this petition that might be considered essential to be brought to the notice of this Court on the next date of hearing.

Copyright Business Recorder, 2023