Law: Income Tax Ordinance, 2001

Section: 122(5),170,171,124A,132(10),122

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3),9(2)

Law: Workers Welfare Fund Ordinance, 1971

Section: 4

Law: Income Tax Ordinance, 1979

Section: 59A,80C,143B,SecondSchedule,Clause(9),(5 9A),50,(4,4A,5AAA,7A,7H)

FINDINGS/DECISION This complaint alleges "maladministration" represented by (a) illegal withholding of WWF refund for the assessment years 1991-92 to 2001-2002, and (b) in the initiation of amendment proceedings u/s 122 of the Income Tax Ordinance, 2001 (hereinafter called the Ordinance) for the assessment year 2001-2002. 2. The facts, as these emerged, are that the Complainant-AOP is a manufacturer and vendor of auto-parts which are supplied to various auto and tractor manufacturers. The complainant exists on NTN 19-02-0680029-7 and was initially assessed in Circle-03, Sialkot, before the transfer of the case to Daska and again to Circle-02, Sialkot. For the purpose of manufacture, imports were made on which tax was deducted at source. Consequently assessments framed on the basis of Statements filed u/s 143B of Income Tax Ordinance, 1979 (hereinafter called the repealed Ordinance) crystallized in a refund at Rs.957,372 which was issued on 30-8-2000 but the dispute remained about refund in respect of Workers Welfare Fund (WWF) which was claimed at Rs.424,381. The Complainant now asserts for refund of this amount together with additional payment for delay in its issuance. Another controversy relates to initiation of amendment proceedings for the year 2001-2002 where assessment on the basis of Statement u/s 143B was framed on 25-6-2003 (u/s 59A/80C) of the repealed Ordinance creating a refund of Rs.1,435,394. Later amendment proceedings were initiated on 5-11-2003 through issuance of notice u/s 122 of the Ordinance alleging: "As you had not exercised option u/s 80C the assessment completed u/s 59A/80C is incorrect and liable to be amended u/s 122 of the Income Tax Ordinance, 2001. This is a case of misclassification of income in terms of section 122(5) of Income Tax Ordinance, 2001 was to be assessed under normal which has assessed incorrectly u/s 59A/80C". The Complainant's reply dated 10-11-2003 and the proof regarding filing of an option on 30-9-1998 in Circle-03, Sialkot were considered unsatisfactory on the ground "no such letter of irrevocable option had been received......." Subsequent elucidation concerning circumstantial evidence about the exercise of…

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