DR. ASIF MAHMOOD JAH, FEDERAL TAX OMBUDSMAN:--This complaint has been filed under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 which was referred for comments to the Secretary, Revenue Division in terms of Section 10(4) of the FTO Ordinance, read with Section 9(1) of the Federal Ombudsman Institutional Reforms Act, 2013.

2.                Briefly, the complainant is a Govt. servant whose refund application for Tax Year 2018 was rejected on the basis that evidence of tax deduction was not attached with the application. The Chief Commissioner-IR, RTO, Islamabad vide her letter dated 20.07.2022 informed that complainant's application for refund has already been rejected on 19.07.2000. Since there is no refund application pending; they cannot proceed further in this case.

FINDINGS:

3.                In the instant case order under section 170(4) is a classical example of departmental inattention and incompetence as;

i. one page order dated 19th August, 2020 for TY 2018 categorically states at Para 3 of the order that;

"Necessary evidence of tax payments is placed on record."

However, in the concluding Para of same order the officer opines,

"that the taxpayer neither furnished any evidence regarding tax deduction manually not attached any evidence in support of refund claimed In view of above facts of the case, the refund application is rejected" Contradiction and carelessness are more than evident.

i.       Order under section 170(4) is silent about any opportunity of being heard given to the taxpayer prior to passing rejection order. This act itself contravenes the said section which obligates the department to afford proper opportunity of being heard.

ii.    In the instant case tax deduction mainly relates to section 236K which is CNIC based and internally verifiable from FBR's portal.

In view of above the instant case reflects serious incidence of maladministration in terms of section 2(3)(i) (b)(c) and (ii) of FTO Ordinance, 2000.

RECOMMENDATIONS: -

4. In view of the foregoing FBR is directed to ensure that;

(i)        commissioner concerned revisits the impugned order for TY 2018.

(ii)     claim of refund is disposed of as per law and after affording proper opportunity of being heard; and

(iii)   report compliance within 45 days.

                          Order accordingly.