FTO directs FBR to decide female taxpayer’s pending refund case within 30 days

ISLAMABAD, Jun 30 (APP): The Federal Tax Ombudsman (FTO) has found maladministration by tax authorities in a years-old refund case involving an Islamabad woman and directed the Federal Board of Revenue (FBR) to conclude the pending proceedings within 30 days.

According to an official order issued by the Federal Tax Ombudsman, the complainant, Ms. Fozia Sharif, had approached the forum against what she described as an unjustified delay, repeated notices by the tax department over a refund claim relating to tax year 2020.

The case relates to a refund claim that remained unresolved for several years while the department continued proceedings under Sections 111(1) and 122(9) of the Income Tax Ordinance. The complainant stated that she had already submitted all required documents, including explanations, bank statements and supporting evidence, before the tax authorities.

According to the order, one of the issues in the case was an amount of Rs2 million, which the department treated as unexplained. The complainant maintained that the amount was a gift received from her husband, an overseas Pakistani, through proper banking channels.

The order noted that proceedings under Section 111(1) were initiated through a notice dated April 15, 2021, requiring compliance by April 24, 2021, but the matter was concluded only on May 6, 2026, through an ex-parte decision. It observed that the proceedings remained pending for more than five years without properly examining the relevant documents or providing the complainant with a reasonable opportunity of hearing.

The order further observed that another notice under Section 122(9) was issued on May 7, 2026, and was still pending at the time of hearing. It noted that the department had treated the remittance as unexplained despite the complainant’s claim that it had been received from her husband through formal banking channels.

The Ombudsman held that the delay had caused hardship to the complainant and that she had been “condemned unheard,” observing that the case reflected an arbitrary exercise of discretionary powers. The Ombudsman concluded that the department’s conduct amounted to maladministration under the Federal Tax Ombudsman Ordinance, 2000.

In its recommendations, the Ombudsman directed the FBR to instruct the Commissioner Inland Revenue, North Zone, RTO Islamabad, to conclude the pending proceedings for tax year 2020 within 30 days after examining the documents relating to the foreign remittance and gift and after providing the complainant with a reasonable opportunity of hearing.

The FBR has also been directed to submit a compliance report within 40 days.