President seals FTO’s refund verdicts in upset to FBR

ISLAMABAD: President Arif Alvi has rejected three representations filed by the Federal Board of Revenue (FBR) against Federal Tax Ombudsman’s (FTO) decisions in refund cases involving a total amount of Rs144.963 million, The News learnt on Thursday.

As per details in one such case, Saif Ullah Khan, a taxpayer, claimed a refund amounting to Rs0.053 million.

He had submitted an e-filed refund application; however, despite his repeated efforts, the department failed to dispose of the refund application within a stipulated period.

He accordingly took up the matter with the FTO by filing a complaint. Having looked into the matter, the FTO directed the commissioner IR Peshawar Zone to revisit the order, exercising powers conferred under section 122A and to pass fresh order for tax year 2020 under section 170 (A) of the ordinance.

The above orders of the FTO were later challenged by FBR before the President; however, the President upheld the decision of FTO and disposed the representation.

In another income tax case, the complainant engaged in manufacturing of vegetable ghee filed return of income for tax year 2020 under section 114 (1) of the income tax ordinance ,2001 and claimed refund amounting to Rs63.40 million.

The refund was aroused on account of excess tax deduction at source under sections 153 (1) (a) ,231A,235 and 236(1) (a) of the ordinance. The refund application for tax years 2020 was e-filed; however, despite repeated efforts of the complainant, the department failed to dispose of the application and the complainant thereafter approached the FTO for redressal of his grievances.

Subsequently, while deciding the complaint, the FTO ordered the FBR to direct the Commissioner IR Enforcement Zone-1 and LTO Lahore to complete the verification and settle complainant’s refund for tax year 2020. The FBR challenged the findings of FTO before the President; however, the president maintained the FTO’s decision and dismissed FBR’s representation.

In a separate case, the FTO’s recommendations regarding processing another Rs81.5 million income tax refund case was also sustained by the Presidency and FBR’s arguments were turned down.