Court Overturns FTO’s Adverse Remarks Against FBR Official

A senior official of the Inland Revenue department has successfully overturned adverse remarks made by the Federal Tax Ombudsman (FTO), with the appellate forum ruling that the FTO’s actions violated the principles of natural justice.

The official, serving as Additional Commissioner (Audit) in the Federal Board of Revenue (FBR), argued that the FTO’s order was passed without giving him a fair hearing. The order had labeled him unsuitable for field postings, which the forum found to be beyond the FTO’s jurisdiction.

The appellate forum emphasized that the FTO’s mandate is limited to investigating maladministration complaints and does not include supervising or disciplining FBR officials. Additionally, it ruled that quasi-judicial actions of FBR officers are not always subject to administrative control, protecting them from disciplinary action for lawful decisions made during their duties.

The forum declared the FTO’s actions, including adverse findings recorded without notice, as unlawful and inconsistent with constitutional court judgments. Consequently, the FTO’s order and all subsequent actions were set aside.

Tax experts consider the ruling significant, as it reaffirms the importance of natural justice and clarifies the FTO’s limited role in administrative proceedings.