Minute sheets in tax assessment issue: IHC issues notices to FTO, FBR chief, others

ISLAMABAD: Islamabad High Court (IHC) has issued notices to the Federal Tax Ombudsman (FTO), Chairman Federal Board of Revenue (FBR) and Chief Commissioner Inland Revenue in connection with a petition challenging the decision that minute sheets in tax assessment proceedings constitute internal records of the FBR and are inaccessible to taxpayers.

It is reliably learnt that the matter arose after a taxpayer, Khurram Shahzad Butt, sought access to specific documents (minute/ order sheets) from CTO, Islamabad, which are prepared during assessment proceedings by the CTO tax employee. CTO’s refusal to provide copies of order sheets raises serious questions about transparency and accountability in the FBR. This lack of access to crucial documentation hinders FBR’s ability to effectively communicate with the public.

It is accused that the CTO is allegedly involved in an attempt to undermine the authority of SCP in Mukhtar Ahmad Ali vs. The Registrar, Supreme Court (2023 SCP 312) and binding verdicts in Waheed Shahzad Butt vs. FOP (PLD 2016 Lah. 872) read with Article 19A of the Constitution.

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When contacted, Khurram Shahzad Butt told this correspondence that viewpoint in classifying order sheets as confidential documents constitute a blatant contempt of orders issued by the Supreme/ High Court and even contrary to orders passed by former FTO belonging to the judiciary.

IHC order states “Petitioners are aggrieved by order pursuant to which a complaint seeking the order sheets maintained by the Taxation Officer in relation to tax assessment of the petitioners was denied. FTO did not appreciate that the minute sheet being referred to by the Tax Department actually means the order sheets in the assessment proceedings relating to the petitioners’ case.

Petitioners are entitled to a copy of such order sheets as they reflect the manner in which the adjudicatory process has been conducted by the taxation authorities. He states that the assessment order has been passed against the taxpayers and they have a right to be provided copies of the order sheets reflecting the manner in which the adjudication of tax demand was carried out by the Tax Department.

Let notices be issued to the respondents for 23.01.2025, who will file report and para-wise comments within a period of seven days. Let respondents 3 and 4 ensure that responsible officers from their offices appear before the Court on the next date of hearing along with the record of the hearings in which assessment proceedings were carried out, IHC ordered.

Copyright Business Recorder, 2024