LAHORE: The tax department has failed to object to adjustment of unverified refund towards current year’s liability. An assessment officer of Corporate Tax Office (CTO) had objected to the adjustment of previous year refund towards the current year’s tax liability. The assessment officer had observed that the taxpayer, a poultry feed manufacturer, had wrongfully adjusted unverified refund of previous year towards the current year’s tax liability. This was termed as mistake warranting rectification under the law. Accordingly, he issued notice to the taxpayer for explanation. However, the taxpayer couldn’t furnish reply to the notice, followed by passing of the controversial order by the assessment officer. In his appeal before the Commission, the taxpayer contended that the adjustment was as per rules as well as established practice. He said the officer of Inland Revenue had failed to establish the existence of mistake apparent from record in the self-assessment order. He further explained that adjustment of refund was as per format of the return of total income prescribed under the Income Tax Rules, 2002 and disallowance of adjustment without proving its admissibility in relevant tax year was illegal. According to the taxpayer, there was a column under the head of computation…