Law: Income Tax Ordinance, 2001

Section: 4(1)(s),122(5A),140,170

Law: Constitution of Pakistan, 1973

Section: 199

(a) Income Tax Ordinance (XLIX of 2001)—Ss. 4(1)(s), 140— Tax recovery—Coercive measures—Mechanism- Redressal of grievance—Federal Board of Revenue is endowed with duty to facilitate taxpayers and establish mechanism to address their grievances and complaints—Under fiscal laws, including Income Tax Ordinance 2001, officials are conferred vast powers to adopt coercive measures to affect recovery of tax liability under S.140 of Income Tax Ordinance, 2001, from person holding money on behalf of taxpayer— Such powers should never be abused to meet collection targets by Commissioner or by adopting abhorrent procedures such as not serving notice under S.140 of Income Tax Ordinance, 2001, in a timely fashion on taxpayer and or third party from whom collection is to be made in order to pre-empt opportunity for such persons to verify or challenge such demand to seek redressal against it--In case such power is abused by tax officials or wrongly exercised, leading to recovery from a person from whom collection could not be made under S. 140 of Income Tax Ordinance, 2001, there must be provided a grievance redressal mechanism in discharge of Federal Board of Revenue’s functions under S.4(1)(s) of Income Tax Ordinance 2001. (b) Income Tax Ordinance (XLIX of 2001)-- --Ss. 122(5A), 140, 170--Constitution of Pakistan, Art. 199-- Constitutional petition--Refunds--Coercive measures—Authorities recovered amount of tax from Bank account of petitioner / taxpayer-- Grievance of petitioner / taxpayer was that amount recovered from bank account was not due and it was illegal and unlawful--Validity-- Petitioner/taxpayer was neither liable for payment of any tax due nor paid any tax in lieu of any deemed generated by Commissioner-- Question of refund of additional tax paid by petitioner / taxpayer did not arise--Provisions of S.170 of Income Tax Ordinance, 2001, was not attracted--Enforcement of recovery notice under S.140 of Income Tax Ordinance, 2001, against petitioner / taxpayer was illegal in breach of provisions of Income Tax Ordinance, 2001, and Art.24 of the Constitution--Such powers tantamount to abuse of authority or reckless disregard of need to exercise diligence by tax…

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