‘Powers of commissioners being used by DCs neither gazetted nor displayed on FBR website’

LAHORE: The Deputy Commissioners in some field formations are using the powers of Commissioners Inland Revenue for amending the assessments which are neither gazetted nor displayed on the website of Federal Board of Revenue (FBR), said sources.

They said the Income Tax Ordinance bestows upon the Commissioners power of amending the assessments but deputy commissioners are enjoying the authority on account of delegation of the same in some field formations.

According to the sources, the Commissioners are delegating powers by issuing office orders at the level of Regional Tax Offices (RTOs) in contradiction of the provisions of the Ordinance. Such office orders are also not covered by the table pertaining to jurisdiction as stated in the Income Tax Ordinance, they stressed.

They said no commissioner can delegate statutory power to his subordinate, therefore, all the amendments of assessments under such delegation of authority are not sustainable in the eye of law, they added.

Sources in the tax practitioners pointed out that taxpayers should know who is exercising authority and whether such exercise of authority is permissible. They further lamented that the concerned officers also hide the fact from the courts of law despite a clear inquiry at the time of adjudication.

They said a practice of misusing the authority leads to uncalled for litigation, ending up on wastage of financial resources as well as precious time of the appellate forums.

The apex forums have pointed out this aspect of the litigation between the department and taxpayers time and again, but all in vain.

Interestingly, they added, the higher appellate forums also impose monetary funds against the officers for such a glaring misuse of authority, but still the practice of misusing the authority continues at the level of RTOs.

This leads to corrupt practices by pressurising taxpayers to compromise with the situation arising out of the misuse of authority. According to them, the FBR should take stock of the situation and ensure gazetting of all notifications, orders etc., and also display on its website, which may affect taxpayers.

Copyright Business Recorder, 2023