ByThe Appellate Tribunal Inland Revenue (ATIR) has urged the Federal Board of Revenue (FBR) to act promptly and efficiently in executing tax demands, emphasizing that prolonged inaction undermines the integrity of tax recovery processes and taxpayer rights. The ATIR’s observation came as it condoned delays in a taxpayer’s appeal, citing procedural lapses and the FBR’s lack of timely action.
A Lahore-based tax lawyer, Waheed Shahzad Butt, argued the case, stressing the importance of adopting a lenient and justice-oriented approach in revenue matters. He emphasized that technicalities should not overshadow fairness, particularly when taxpayers face delays caused by the FBR’s inefficiency. He further noted that courts and tribunals have a responsibility to uphold the principles of natural justice.
The tribunal highlighted the critical requirement of serving taxpayers with orders before initiating recovery proceedings. It noted that failing to serve notices properly constitutes a procedural gap that weakens the legitimacy of recovery efforts. This procedural safeguard, the tribunal ruled, is essential to ensure taxpayer rights are respected.
The case in question involved a taxpayer who claimed they were unaware of any confirmed tax demand or adverse appellate order until receiving a recovery notice dated December 4, 2024. The notice was the first communication they had received in years regarding the matter. The taxpayer argued that no prior notice had been served at their registered address, despite the requirements outlined in the Income Tax Ordinance, 2001.
In its decision, the ATIR criticized the silence and inaction of the FBR’s Regional Tax Office (RTO) officials, labeling it a breach of constitutional provisions, including Articles 4, 5(2), and 10A, which safeguard the rule of law, equality, and due process. The tribunal concluded that the delay in filing the appeal was not deliberate and accepted the taxpayer’s request for condonation.
The ruling serves as a reminder for the FBR to ensure procedural compliance and timely execution of tax demands. It underscores the importance of balancing efficient tax administration with the fundamental rights of taxpayers, reinforcing the need for fairness and accountability in revenue matters.
