ISLAMABAD - The Islamabad High Court (IHC) on Monday set aside the Federal Tax Ombudsman (FTO) letter dated 14-04-2021 to carry out an inspection of the office of the Commissioner Inland Revenue, Islamabad.
A single bench of IHC comprising Justice Babar Sattar conducted hearing of the joint petition of Abdul Waheed Khan, Zulfiqar Ahmed, Commissioner Inland Revenue, AEOI Zone, LTO, Islamabad, Naeem Hassan, Commissioner Inland Revenue, Audit Zone-II, LTO, Islamabad, and Shabana Mumtaz, Commissioner Inland Revenue, Legal Zone, LTO, Islamabad. The judge after hearing the arguments accepted the writ petition and set aside the FTO letter.
Hafiz Ahsaan Ahmad Khokhar, representing the Chairman Federal Board of Revenue (FBR), contended that his client through a letter dated May 3, 2021 had questioned the jurisdiction of FTO to inspect any office of the field formation of FBR. He said that the FTO through its Registrar was informed that as per Section 10(4) of the Federal Tax Ombudsman Ordinance 2000, if the Federal Tax Ombudsman proposes to conduct an investigation into a matter, the FTO shall issue a notice the Secretary Revenue Division and to the officer against whom allegation have been levelled to seek reply to the allegation contained in the complaint.
Hafiz Ahsan argued that as per regulation 11(3), the notice calling for reply shall enclose a copy of the complaint or relevant extract of the complaint highlighting the grievance of the complainant, the alleged nature of maladministration and the relief sought by the complainant along with all relevant documents attached with the complaint.
He submitted that the letter of FTO was devoid of allegations, copy of complaint and relevant documents as mentioned in the FTO Ordinance, neither any notices were endorsed to the officers.
He contended that the requested documents have not been provided to the FBR to-date, while constitution of inspection team, has been decided, which is against the spirit of law and may put the officers in disadvantageous position and also makes it impossible to ascertain if the matter falls within jurisdiction, function and powers of the FTO or otherwise, he added.
The counsel submitted that the intent of the legislature regarding the office of the FTO is envisaged in preamble to the FTO Ordinance, which stipulates that the Federal Tax Ombudsman is to diagnose, investigate, redress and rectify any injustice done to a person. However, in the instant case no injustice to any person has been identified requiring intervention or redressal by the FTO.
The FTO through its Registrar on 14-04-2021 issued the impugned Letter No.0033/OM/2021 to the FBR to constitute an inspection team to carry out an inspection of the office of the Commissioner Inland Revenue, Islamabad.
The petition contended that the impugned Letter No.0033/OM/2021 dated 14-04-2021 issued by the FTO to the FBR is illegal, arbitrary, without jurisdiction, ultra vires the Establishment of the office FTO Ordinance.