Islamabad, Pakistan:A tractor manufacturer has successfully challenged the Federal Board of Revenue’s (FBR) SRO 563 (I)/2022, arguing that its retrospective application was a mala fide act aimed at depriving the taxpayer of a legitimate refund claim.
The taxpayer had filed a refund claim under SRO 363(1)/2012 but was denied the claim by the Deputy Commissioner Inland Revenue due to the introduction of SRO 563 (I)/2022.
The taxpayer appealed the decision to higher appellate forums, arguing that SRO 563 (I)/2022 could not be applied retrospectively and that it had filed its refund claim prior to its enactment. Business Recorder
The appellate forums agreed with the taxpayer, ruling that the FBR did not have the authority to take away vested rights or upset past transactions through retrospective application of SRO 563 (I)/2022.
The decision highlights the importance of challenging arbitrary actions by tax authorities and upholding taxpayers’ rights.
