Action against LTO officers: IHC summons CCIR, Member Operations FBR for initiating proceedings

ISLAMABAD: Islamabad High Court (IHC) has summoned Member Operations Federal Board of Revenue (FBR) and Chief Commissioner Large Taxpayer Officer Islamabad office for initiating contempt of court proceedings and penal action against LTO officers.

In this regard, the IHC has issued an order in the writ petition number 2298 of 2016.

It is reliably learnt that during the hearing of writ petition filed by Islamabad Electric Supply Company (IESCO), IHC has ordered that the Chief Commissioner Inland Revenue (CCIR), LTO and Member Operations, FBR appear before the Court and satisfy the Court as to why penal proceedings, including contempt of Court proceedings may not be initiated against the hierarchy of officials serving within the FBR and the CCIR Office for affecting illegal recoveries in breach of orders of the High Court and further that the accounts of the FBR should not be attached to give effect to the orders of this Court.

When contacted tax lawyer Waheed Shahzad Butt informed that on the same issue, Federal Tax Ombudsman has also summoned Member (Operations) FBR for not responding to specific queries regarding instructions issued by the FBR for attachment of bank accounts of power distribution companies including IESCO for tax recovery by field formations without obtaining approval from Member FBR.

Waheed Butt further added that the instant case of IESCO is a rare example of worst misuse of authority by LTO unlawfully recovering the funds from IESCO banks by damaging the reputation of the IESCO.

IHC order stated that the LTU, Islamabad has failed to satisfy this Court as to how the recovery affected against the petitioner which is subject matter of this petition was in accordance with the law. It appears that by applying bureaucratic red-tape, the Tax Department is further complicating the matter even though there is no judgment or order in the field in favour of the Tax Department legitimizing the demand or the coercive recovery that forms the subject matter of this petition.

Let the Chief Commissioner, Islamabad i.e. Respondent No. 3 as well as Member of Operations, FBR appear before the Court on the next date of hearing and satisfy the Court as to why penal proceedings, including contempt of Court proceedings may not be initiated against the hierarchy of officials serving within the FBR and the Chief Commissioner’s Office for affecting illegal recoveries in breach of orders of the High and further that the accounts of the FBR should not be attached to give effect to the orders of this Court, IHC order added.

Copyright Business Recorder, 2024