Landmark ATIR Decision Calls for Accountability in FBR Operations

Appellate Tribunal Inland Revenue (ATIR) has issued a significant ruling, directing the Federal Board of Revenue (FBR) chairman to treat a specific case as a test case. The tribunal has instructed the FBR to ensure all assessing officers under fiscal statutes strictly adhere to binding orders and to issue appropriate guidelines to reinforce compliance.

The tribunal emphasized the importance of educating assessing officers about the severe consequences of disregarding these orders, aiming to instill accountability and prevent such lapses in the future.

Tax lawyer Waheed Shahzad Butt, who represented the appellant, argued that wasteful litigation and misapplication of fiscal laws by certain FBR officers result in unnecessary costs to taxpayers. He criticized such practices as a way for officers to artificially inflate performance metrics.

This ATIR decision highlights the urgent need for systemic reforms within the FBR to eliminate futile litigation and enforce adherence to legal precedents. It calls on FBR leadership to strengthen the rule of law and ensure the judicious use of public funds.

In its order, ATIR stated: “We (tribunal) express grave concern that the assessing officer disregarded binding decisions of this Tribunal. It was improper and unlawful for him to ignore the law laid down by this Tribunal, which is binding on all subordinate authorities within its jurisdiction unless stayed, suspended, or modified by the High Court. There is no ambiguity: decisions of this Tribunal must be scrupulously followed in both letter and spirit.”

The tribunal further noted: “It is established law that the Tribunal serves as the highest authority for factual determinations in tax matters, as affirmed by judgments including 2022 SCMR 1082 and 2021 PTD 1367. Despite clear guidance in Circular 1(7)DT-14/92, the assessing officer willfully ignored this Tribunal’s decisions, showing blatant disregard for legal accountability and responsibility.”

ATIR directed the FBR chairman to treat this case as a benchmark for ensuring compliance across all operations. The tribunal urged the Member Operations-IR to issue clear instructions to assessing officers and stress the serious consequences of ignoring binding orders. This ruling aims to foster accountability and uphold fiscal discipline within the FBR