Law: Income Tax Ordinance, 1979

Section: 50(7E),50(7F),56

Law: Income Tax Ordinance, 2001

Section: 170

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

DECISION/FINDINGS This complaint has been filed blaming the Department for inaction on the request for rectification of assessment for the year 2002-2003 to give credit for deductions under sections 50(7E) and 50(F) of the Income Tax Ordinance, 1979 (hereinafter called the repealed Ordinance). 2. The facts leading to the complaint are that Return for the year 2002-2003 was filed declaring income Rs.72,200 on which tax demand came to Rs.915. Deductions under sections 50(7E) and 50(7F) of the repealed Ordinance aggregated Rs.5,920 resulting in a refund of Rs.5,005. However, the assessment order, when received showed ND (No Demand/Refund) because tax liability of Rs. 915 was squired up by allowing credit for an equal amount. 3. The Respondent have forwarded R-CIT Central Region, Multan para-wise comments which admit the error but attribute delay in issuance of the claimed refund to non-filing of proof of payment by way of original challans and lease deed showing that the property where Electric meter and Telephone were installed was wholly in the use of the Complainant and not shared by the anyone else. It concludes by submitting "the matter is under consideration, therefore, rectification will be made on receipt of proof of payment/deduction tax". 4. The learned counsel for the Complainant Mr. Amir Hussain (ITP) submitted that the acknowledgement of filing of Return clearly shows that 11 Electricity bills and 5 Telephone bills were attached claiming aggregate deduction of Rs. 5,920 but credit was given for only Rs. 915. It was alleged that some Electricity/Telephone bills were removed leaving only 2 on record which total Rs. 960 (Rs. 360 + 600), still credit was given for Rs. 915 for which there was no basis except mala fide and "maladministration" aimed at depriving Complainant of full benefit. The learned counsel carried the allegation of mala fide still further by presenting a notice under section 61, dated 24-4-2003 and a letter, dated 30-4-2003, calling for details in respect of years, 1996-97 to 2001-2002 in total disregard of the fact that as per proviso to section 56 of the repealed Ordinance Returns could only be summoned for a period as far back as 5…

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