LAHORE: A senior official of the Inland Revenue department has got rescinded adverse remarks made by the Federal Tax Ombudsman (FTO), proving it a violation of the principles of natural justice.
The official of the Inland Revenue department had challenged the FTO’s order, arguing that it was passed without giving him a fair hearing. He was of the view that the FTO had recorded some adverse findings against him working in Federal Board of Revenue (FBR) as an Additional Commissioner (Audit). The FTO, in its order, had recommended that the officer was not suitable for any field posting.
The appellate forum agreed with him, holding that the FTO’s conduct was in violation of the principles of natural justice.
The forum noted that the FTO’s role is to investigate complaints of maladministration and not to supervise or discipline officials of the Federal Board of Revenue (FBR). The forum also held that the FTO does not have the jurisdiction to challenge the orders of a constitutional court.
It maintained that the acts and functions ,i.e. (passing of orders) by officers of Federal Board of Revenue, while performing quasi-judicial functions under tax laws, are not always subject to administrative control of Federal Board of Revenue, so as to bring disciplinary proceedings against such officers for passing orders while performing such functions.
Therefore, conduct of the Federal Tax Ombudsman recording adverse findings against officer while deciding a complaint of a taxpayer could not be sustained as it was done without any notice and without following the principles of natural justice. Such act of the Federal Tax Ombudsman was in violation of judgments of constitutional courts, and order in question amounted to violating such judgments.
The forum set aside the FTO’s order, along with all subsequent actions initiated against the petitioner. The court also declined to initiate any proceedings against the FTO.
According to the tax experts, the judgment is significant, as it clarifies the role and jurisdiction of the FTO and emphasizes the importance of following the principles of natural justice in administrative proceedings.
Copyright Business Recorder, 2025
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