Law: Income Tax Ordinance, 2001

Section: 92,96,143B,177(4)

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3),9(2)(b)

Income Tax Ordinance (XXXI of 1979)--- ----Ss.92 & 96---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Recovery of tax from persons holding money on behalf of an assessee---Notice under S.92 of the . Income Tax Ordinance, 1979 was issued to withholding agent for the recovery of arrears without quoting any assessment years---Withholding agent withheld such tax and paid the amount to government treasury without any verification from the complainant/assessee---Complainant/assessee applied for refund of this deduction of tax in financial year 2000-01 but Taxation Officer refused to issue the refund on the ground that the arrears were outstanding for the assessment year 1981-82---Validity--Department failed to prove that demand of arrears was against present Association of Persons of the complainant which was a continuation of the earlier Association of Persons---National Identity Card of the complainant gave year of birth as 1971 which means that complainant was about 11 years old in 1982 when arrears for assessment year 1981-82 were raised against the Association of Persons---National Tax Number in question was not allocated at that time to the complainant as member of Association of Persons---Inaction of the department for not effecting recovery for 15 years had not been explained---Absence of assessment record and applications for allocation of National Tax Number raised presumption that the complainant was not the same which owed the arrears pertaining to assessment years 1982 to 1985---Recovery had been effected without notice to the complainant after a period of over 15 years and without ascertaining the liability of existing members of complainant Association of Persons---Order of rejection of refund were not maintainable in the eye of law---Federal Tax Ombudsman recommended that the impugned orders of rejection of refund should be set aside and case remanded for de novo decision after giving an opportunity of hearing to the complainant and disciplinary action be initiated against the concerned officials for not effecting the recovery of arrears for over 15 years. DECISION/FINDINGS JUSTICE (RETD.) MUNIR A. SHAIKH,…

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