ATIR Ruling Favors Taxpayers on Delayed Appeals

The Appellate Tribunal Inland Revenue (ATIR) has ruled that prolonged inaction and silence by Federal Board of Revenue (FBR) officials in recovering confirmed tax demands justify condoning delays in taxpayers appeals

It is reliably reported that the appeal was argued by Lahore-based tax lawyer Waheed Shahzad Butt, who stressed the need for courts and tribunals to adopt a lenient approach in revenue cases. He argued that such matters should focus on justice and fairness, rather than being dismissed on technical grounds

The ATIR emphasized that taxpayers must be served with proper notices before initiating recovery actions. Failure to do so creates procedural flaws, undermining the legitimacy of such actions.

This decision establishes a precedent aligned with natural justice and taxpayer rights. It urges FBR to act efficiently while adhering to procedural safeguards, Waheed added.

The appellant stated, “We were unaware of any outstanding tax demand or adverse order until receiving a recovery notice dated 04.12.2024. This was the first notice since the appellate order, with no prior communication at our registered address”

The ATIR acknowledged the taxpayer’s grievance over FBR’s inaction, finding it in breach of constitutional provisions and binding precedents

Given the lack of prior notices or orders, the tribunal accepted the taxpayer’s plea and condoned the delay, declaring the inaction non-deliberate