ATIR’s orders: FTO explains what actually constitutes maladministration

ISLAMABAD: The Federal Tax Ombudsman (FTO) has ruled that the delay in giving appeal effect to the order which is in the field constituted maladministration being committed by the Large Tax Office (LTO) Islamabad.

According to an order issued by the FTO in favour of an oil and gas company on Thursday, the FTO has directed the FBR to direct the CIR concerned to give appeal effect to the orders of ATIR within 30 days and report compliance within 45 days.

The case was pleaded by tax lawyer Khurram Shahzad on the behalf of the petitioner before the FTO.

Taxpayers’ queries: FTO concerned at FBR Member’s lack of response

The complainant stated that illegal order passed u/s 170(4) of the Income Tax Ordinance (the Ordinance) for Tax Year 2015 by the Deputy Commissioner-IR, LTO Islamabad was quite unfair and contrary to law hence, disapproved firstly by the Commissioner-IR (Appeals-I), Islamabad who annulled the case and then finally cancelled by the Appellate Tribunal Inland Revenue vide order dated March 27, 2023.

The complainant prayed that intentional mala fide negligence, inattention delay, incompetence and inaptitude in discharge of duties and responsibilities on the part of LTO, Islamabad for non-giving appeal effect, to appellate order dated 27.03.2023 for the Tax Year 2015 u/s 124(4) of the Income Tax Ordinance, 2001 within the prescribed time period is tantamount to serve maladministration. Therefore, strict directions may kindly be issued to the tax employees to allow appeal effect order immediately.

As evident, the appeal effect is pending since receipt of the order of the Appellate Tribunal Inland Revenue (ATIR) on April 10, 2023 and no restraining order is available against passing appeal effect order. The department has not given appeal effect to the order despite application filed by the complainant. The delay in giving appeal effect constitutes maladministration, the FTO added.

Copyright Business Recorder, 2023