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ISLAMABAD: Appellate Tribunal Inland Revenue (ATIR) in a landmark decision has referred a case to the chairman, Federal Board of Revenue (FBR), directing the matter to be treated as a test case against assessing officers to issue instructions to all assessing officers operating under fiscal statutes to comply with binding orders.
Assessing officers are also to be made aware of the serious consequences that may arise if such orders are not strictly adhered to.
It is reliably learnt that this pivotal appeal was argued by tax lawyer Waheed Shahzad Butt, who highlighted the critical issue of futile litigation and the misuse of taxpayer money by certain FBR officers by missing fiscal laws to show fake performance.
The ATIR’s referral underscores the need for systemic reform and accountability within the FBR, aiming to curtail wasteful litigation practices and ensure compliance with established legal precedents. This decision serves as a call to action for FBR leadership to reinforce the rule of law and prioritize efficient use of public resources.
ATIR order stated: “We (tribunal) add with grave concern that it was not open to the assessing officer to ignore the law laid down by this Tribunal. It was not proper on his part not to follow binding decisions of this Tribunal. He is bound to obey the law declared by this Tribunal. It is not even the case of the OIR that the decisions of this Tribunal have been stayed/suspended/modified by the High Court. We are very clear and we have no doubt in our minds that when a point is concluded by a decision of this Tribunal, all subordinate authorities within the territorial jurisdiction of Tribunal are bound by it and must scrupulously follow the said decision in letter and spirit.”
ATIR order further added: “It is now settled law that the highest authority for factual determination in tax matters is the Tribunal, reliance may be placed on 2022 SCMR 1082, 2021 PTD 1367, CP 1842-L of 2022). We have further seen in this order to our dismay and shock that in spite of clear instructions in Circular 1(7)DT-14/92 providing guidance/instructions to the field formations, OIR willfully ignored the cited order of the Tribunal. In the present case the law has been flouted blatantly and it appears without any fear of accountability and sense of responsibility.
“We expect that the learned chairman, FBR shall take this matter as a test case. Let this order be sent to the learned Member Operations-IR, FBR for the purposes of issuing instructions to all assessing officers working under fiscal statutes to comply with the above said circular. They should also be made aware of serious consequences in case binding orders are not strictly followed,” ATIR order added.
Source: Business Recorder, 2024
https://www.brecorder.com/news/40340496/...g-officers