Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2,2(3),10,10(8)

Law: Income Tax Ordinance, 1979

Section: 59,59(1),62

Income Tax Ordinance (XXXI of 1979)..... Ss. 59(1) & 62 Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss. 2(3) & 10(8) Self assessment Return was set apart for total audit Complaint was filed against such setting apart Assessment was finalized under S.62 of the Income Tax Ordinance, 1979 during the pendency of Complaint Department contended that Assessing Officer was under no legal compulsion to wait for Federal Tax Ombudsman's decision nor Federal Tax Ombudsman had issued any stay order Validity Merit of allegation of mala fides lies in the principles governing exercise of administrative discretion by the concerned tax employee Exercise of discretion had to be judicious. Ordinary demand of administrative justice was that the Assessing Officer should have waited for Federal Tax Ombudsman's decision unless the assessment was getting time barred Injudicious action without any valid reason had created extra administrative and legal obligations in implementing the recommendations of the Federal Tax Ombudsman Department's review application in respect of recommendation had been rejected Section 10(8) of the Establishment of the Office of Federal Tax Ombudsman Ordinance, 2000 though did not bar any action taken by the Revenue Division, during the pendency of investigation but such discretion had to be exercised judiciously As review application was decided in favour of assessee, he would get the benefit/relief allowed by Federal Tax Ombudsman Department should implement the assurance given by its representative. DECISION/FINDINGS The complainant alleges 'maladministration' on the part of the Revenue for framing an illegal and arbitrary Assessment under section 62 of the Income Tax Ordinance, 1979 (hereinafter called as repealed Ordinance) for assessment year, 2001 2002 despite the fact that the Honourable FTO on earlier complaint No. 786 L of 2002 filed against RCIT's order setting apart his tax return for total audit had recommended acceptance of the same under SAS (Self Assessment Scheme). 2. Facts of the case are that he had filed his Return under SAS for assessment year 2001 2002 declaring an income of Rs.1,503,204. The return…

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