Failure to produce records before court: ATIR Lahore asks FBR to take strict action against taxmen

ISLAMABAD: Appellate Tribunal of Inland Revenue, Lahore, has directed the Chairman of the Federal Board of Revenue (FBR) to take strict action against the tax officials, who failed to produce records before the court in a case of tax fraud despite specific directions of the court.

According to the judgement of the ATIR in the matter of Bright Star Engineering Works vs Commissioner Inland Revenue, Zone-II Corporate Regional Tax Office, Lahore, from the non-corporative attitude of the concerned tax officials prima facia shows that there is something dubious and ulterior motive involved for which the record has not been produced before the court. Such conduct, if left unchecked, strikes at the very sanctity of statutory limitations, undermines transparency in tax administration, and erodes confidence in the integrity of the official record.

However, despite the specific direction of the Bench, neither the concerned officers have appeared, nor a record of the case was provided for our satisfaction/examination.

From all the facts recorded above, it is very much evident that departmental officials have playing ping pong with this forum but neither tendered a personal appearance nor faithfully discharged their obligation to produce the relevant record.

Therefore, the matter warrants immediate inquiry in order to ascertain the responsibility and to take necessary and appropriate action against the responsible persons.

The FBR should initiate the inquiry, fix responsibility, and take strict action against the responsible persons under the law.

In these circumstances, the tribunal is handicapped in judging the exact volume of tax fraud or pinpointing who is actually negligent for the misplacement of the official record, the tribunal said.

It is the tribunal’s strong apprehension that the initiation of the case might have been made with allegations of huge tax fraud, but ultimately, after thorough investigation, the show cause notice was issued for a nominal amount of Rs 180,264, which is also a lapse of five years when the case has become time-barred.

There is a common practice among the departmental representatives to say that the record is not available. Therefore, a thorough probe is needed so that in the future such a kind of controversy does not arise, the tribunal added.

Copyright Business Recorder, 2026