Islamabad: The Federal Tax Ombudsman (FTO) has declined a review petition against its earlier findings in Complaint No. 02924/LHR/ST/2026 after holding that no error apparent on the face of the record existed to justify review.
At the same time, the Ombudsman has directed the Inland Revenue authorities to undertake a comprehensive examination of a separate issue of alleged maladministration relating to the taxpayer’s payments that surfaced during the review proceedings.
According to the order, the original findings correctly reflected the factual record available when they were rendered and, therefore, could not be reopened merely because additional material had surfaced subsequently.
During the review proceedings, however, production of the complete official record disclosed a distinct administrative issue relating to the accounting and treatment of payments admittedly received from the taxpayer during investigation proceedings and their subsequent treatment while implementing the order of the Appellate Tribunal Inland Revenue (ATIR) and processing the taxpayer’s claim.
The Ombudsman observed that although legal issues arising from the underlying tax dispute are pending before the Lahore High Court, such pendency did not relieve the tax administration of its continuing obligation to correctly account for taxpayers’ payments, faithfully implement appellate orders and ensure that no maladministration occurs in the discharge of its statutory functions.
To address the issue, the FTO directed the Chief Commissioner Inland Revenue concerned to conduct, through an officer not below the rank of Commissioner Inland Revenue, a comprehensive examination of all payments received from the complainant.
The designated officer has been directed to verify the legal character of the payments from the official record, determine whether due effect has been given to each payment and pass a reasoned speaking order after providing the taxpayer a full opportunity of hearing.
The order further stated that where any omission, computational error or other instance of maladministration is found, corrective action should be taken in accordance with law.
The Ombudsman directed that the exercise be completed within 60 days, while compliance was to be reported to the FTO Secretariat within 15 days thereafter.
The order also reiterates that while parties appearing before statutory adjudicatory forums are entitled to advance competing legal arguments, factual assertions must remain accurate, complete and capable of verification from official records. It further observes that professional decorum and measured advocacy strengthen the administration of justice, whereas personalised or intemperate allegations serve no useful purpose.
The FTO clarified that its recommendations neither reopen the earlier findings nor express any opinion on issues pending before the Lahore High Court. It said the directions were confined to examining and resolving the surviving issue of alleged maladministration strictly within the jurisdiction conferred upon the Federal Tax Ombudsman under the law.
