Law: Income Tax Ordinance, 2001

Section: 114,115,122,153,170,235,114(6),115(4),15 3(1)(b),170(4)

Income Tax Ordinance (XLIX of 2001)---Ss.114(6), 115(4), 122, 153(1)(b) & 170(4)---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss.10 & 11---Constitution of Pakistan (1973), Art. 24(I)---Non-payment of income tax refund for the years 2003 to 2006---Refund was claimed on account of tax withholdings under Ss.153 & 235 of the Income Tax Ordinance, 2001---Since the taxpayer had paid tax through deduction and also filed statements under S.115(4) of Income Tax Ordinance, 2001, he had to be paid the excess amount of deducted tax---Denial of refund would be violation of Art.24(1) of the Constitution which had laid down that "no person would be deprived of his property save, in accordance with law "---Belated claim of refund was not barred by time since time limit for issuance of refund was directory and not mandatory---Ombudsman recommended that (i) Secretary, Revenue Division to ensure the issuance of refund to the complainant in accordance with the provisions of law; (ii) officer concerned to pass speaking order under S. 170(4) of Income Tax Ordinance, 2001 that the return filed by the complainant for tax year 2003 was hit by limitation of statutory provisions, so that he could avail the opportunity of the appellate forum; and (iii) compliance be reported within 30 days. 2008 PTD 1897; 2008 PTD (Trib.) 370 and 1999 PTD 2012 ref. THIS FINDING DECISION BY DR. MUHAMMAD SHOAIB SUDDLE, FEDERAL TAX OMBUDSMAN.---This complaint pertains to non-payment of income tax refund of Rs.72,052 for the tax years 2003 to 2006. The complainant derives income from rendering of services as tailoring contractor. Refund is claimed on account of tax withholdings under section 153, and 235 of the Income Tax Ordinance 2001. The complainant had earlier filed statement of tax withholdings under section 115(4) of the Ordinance showing the receipts and deduction of tax withheld therefrom to be covered by the presumptive tax regime (PTR). Later however, returns were allegedly revised, tax withholdings were claimed adjustable and refund was claimed. The learned AR argued that the complainant was fully entitled under the law to revise his return under the…

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