Law: Income Tax Ordinance, 1979

Section: 65,66A,170,171,103

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

Income Tax Ordinance (XXXI of 1979)----Ss. 103, 65 & 66-A---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Power to withhold refund in certain cases---Additional assessment---Withholding refund on the pretext of initiation of proceedings under S.65 of the Income Tax Ordinance, 1979---Validity---Legislature enacted S.103 of the Income tax Ordinance, 1979 to preclude the loss of Revenue in those cases where it was feared that taxpayer, after obtaining refund, might divest himself of all assets or may disappear thus render recovery impossible---Fact that despite initiating action under S.66-A of the Income Tax Ordinance, 1979 and, later under S.65 of the Income Tax Ordinance, 1979, no order under S.103 of the Income Tax Ordinance, 1979 was passed was indicative that there was no apprehension about the complainant/assessee disappearing or divesting himself of assets---Withholding payment of refund, even after verification of challans, showed mala fides falling under the domain of 'maladministration'. as per S.2(3) of the Establishment of Office of Federal Tax Ombudsman Ordinance. 2000---Federal Tax Ombudsman recommended that the refund having accrued from the date of assessment on 23-8-1999 be issued forthwith under S. 170 of the Income Tax Ordinance, 2001 and that additional payment for delayed refund be. worked out under S.171 of the said Ordinance w.e.f. 2-4-2002 when the refund was created through rectification under S.156 of the Income Tax Ordinance, 1979. In re: Inayat Ullah's case 1989 PTD 876 and 2002 PTD 2734 rel. DECISION/FINDINGS This complaint has been filed protesting against non-issuance of refund for the assessment year 1998-99. The Complainant is an `individual' who is a manufacturer and vendor of tin-containers. 2. Facts in brief are, that the complainant y existed at NTN 6-8-468680 since 1993. For the assessment year 1998-99 return, filed declaring Income at Rs.386,353, was processed on 23-8-1999 to determine Total Income at Rs.700,337. However, on the IT-30, credit was given only to the extent of tax due, thus showing the result as ND. Rectification application was then moved on 7-9-1999 requesting full…

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