Law: Income Tax Ordinance, 1979

Section: 5(5),59(1),61,62

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

Law: Income Tax Ordinance, 2001

Section: 209,209(7)

FINDINGS/DECISION This complaint relates to the assessment year 2001-2002 and alleges "maladministration" by way of (i) violation of jurisdiction order issued by the CBR, and (ii) completion of assessment under normal law whereas return should have been accepted under SAS. 2. Briefly the facts are that the Complainant-Company is a manufacturer and vendor of breads with factory at Multan. Returns, since the very beginning were filed at Lahore indicating the address as care of the Legal Advisor. For the assessment year2001-2002 though the return was filed under SAS notices u/s 61 of the Income Tax Ordinance, 1979 (hereinafter called the repealed Ordinance) were issued on 01-09-03, 17-10-03 and 10-12-03. On receipt of the third notice the complainant vide letter dated 30-12-03 requested for transfer of case to Multan taking shelter under the CBR notification dated 27-5-2003 whereby jurisdiction in the case of certain categories of private Ltd. Companies was to be assigned considering their (a) manufacturing process, and (b) location of factory. It was suggested that since the complainant had their factory in Multan, the jurisdiction fell with Circle-34, Multan. Ignoring this request, several other notices were issued u/s 61 and 62 of the repealed Ordinance on 26-02-04 and 10-03-04 which were complied (firstly) by insisting that return should be accepted under SAS and (secondly) that the jurisdiction did not vest with the Taxation Officer at Lahore. The assessing officer, however, rejected these objections for thereasons recorded in the assessment and determined the Income at Rs.3,157,780 against the declared Rs.380,160. This is the cause of complaint. 3. Respondents have forwarded para-wise comments by R-CIT, Central Region, Multan denying "maladministration" by pleading that the Return did not qualify for acceptance under SAS as the comparison was to be made with the assessment framed on 1-6-2000 for the assessment year 1998-99 and not with the assessment for 1999-2000 which was completed on 22-2-2000. The R-CIT has further submitted that the jurisdiction was validly exercised by the D-CIT at Lahore because the return was filed in her circle hence the provisions…

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