The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to ensure timely disposal of a pending application filed a complainant under Section 221 of the Income Tax Ordinance, 2001.
Statutory limitation not a license to delay, early disposal absolutely essential: FTO
ISLAMABAD, Oct 01 (APP): The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to ensure timely disposal of a pending application filed a complainant under Section 221 of the Income Tax Ordinance, 2001.
The direction was issued while deciding a review petition. The complainant had raised a grievance regarding the non-disposal of an application, filed under Section 221 of the Income Tax Ordinance, 2001, along with issues related to its income tax assessment for Tax Year 2018.
The FTO noted that the assessment-related matters had already been decided by the Appellate Tribunal Inland Revenue (ATIR), Lahore, on October 2, 2024, and those matters were not reopened during the review proceedings.
During the proceedings, the complainant contended that the pending Section 221 application was a separate issue requiring consideration. The department acknowledged the filing of the application and stated that the competent authority would dispose of it in accordance with law.
The Federal Tax Ombudsman observed that although the statutory period mentioned under Section 221(3) had not expired, this did not require the authority to wait until the end of that period before taking action. The order stated that timely disposal would provide certainty to the parties and ensure that the statutory remedy was addressed without avoidable delay.
The FTO accepted the review petition to the limited extent of the grievance concerning the pending Section 221 application and recommended that the FBR directed the concerned Commissioner to dispose of the application within 20 days of receipt of the order, in accordance with law.
The order clarified that the recommendation was only for timely disposal of the pending application and did not express any opinion on the merits of the application or its eventual outcome. The Commissioner concerned was also required to report compliance with the recommendation within the stipulated period.
