FTO instructs FBR to ensure IR Commissioner in addressing rectification application

ISLAMABAD: The Federal Tax Ombudsman (FTO) has instructed the Federal Board of Revenue (FBR) to ensure that the concerned Commissioner of Inland Revenue (IR) in Multan addresses the rectification application submitted by the complainant.

The complaint, lodged under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000, challenges the assessment order dated June 27, 2022. This order was issued under Section 122(5A) of the Income Tax Ordinance, 2001, by the Additional Commissioner of Inland Revenue, Range-III, D G Khan, Regional Tax Office (RTO), Multan for the tax year 2016.

The complainant, an agriculturist with additional income sources, filed their tax return for 2016under Section 114(1). This return was automatically considered an assessment order under section 120(1)(b).

The Commissioner-IR in Multan later amended this assessment under Section 121(1)(d) on December 28, 2017, disallowing the agricultural income due to non-payment of agricultural tax.

Despite the disallowance, the Assistant Commissioner, City, Sub-Division, D G Khan, issued a recovery notice on November 2, 2020, demanding agricultural income tax of Rs 268,000 under the Punjab Agriculture Income Tax Act, 1997.

An appeal against the recovery notice was upheld by the Commissioner, D G Khan Division, on March 16, 2021. A previous complaint filed with the FTO was dismissed on June 30, 2021, due to lack of jurisdiction over provincial matters.

The FTO referred the matter to the Secretary Revenue Division for comments, in accordance with section 10(4) of the FTO Ordinance and Section 9(1) of the Federal Ombudsmen Institutional Reforms Act, 2013.

The Chief Commissioner-IR, RTO, Multan responded with detailed comments on April 15, 2024, emphasising that the issue pertains to provincial jurisdiction and advising the complainant to seek redressal from the relevant provincial authorities.

Nevertheless, the FTO has directed the FBR to ensure that the rectification application filed by the complainant is processed expeditiously in line with Section 221 of the Income Tax Ordinance, 2001. The Commissioner-IR, Multan, has been given a 15-day deadline to dispose of the application.

This directive underscores the importance of timely resolution of tax-related grievances and aims to facilitate taxpayers in addressing their concerns within the statutory framework.

Copyright Business Recorder, 2024