2011 PLP 1414 (PTD)

Waheed Shehazad Butt for the Complainant. Samia Ijaz (DCIT) and Ali Mansoor ACIT for Respondents. DECISION/FINDING JUSTICE (R) MUNIR A. SHAIKH, FEDERAL TAX OMBUDSMAN.

The Income Tax assessment of the complainant for the assessment years 1994-95 to 2002-2003 was completed under the provisions of the Repealed Income Tax Ordinance, 1979 and for the tax Year, 2003 under the provisions of Income Tax Ordinance, 2001. An amount of Rs.3,538,551 for these years is due to him either on the basis, of rectification applications or on the basis of appeal effect order or order under section 120 of the Income Tax Ordinance, 2001. The respondent No.2 was under legal obligation to issue the refund along with the demand note/Order/IT.30 Form. He submitted a number of letters/reminders for disposal of his refund claim but no action was taken by the respondents. The inaction on the part of the respondents amounts to maladministration. He has requested that necessary direction regarding issuance of refund along with compensation be issued and any other relief deemed appropriate may also be granted.

2. In the parawise comments the DG, RTO, Lahore, has submitted that the rectification orders were passed under section 221 of the Income Tax Ordinance, 2001 on 8-5-2004 and refunds were created in all the years under consideration. The complainant's refund application was received on 30-6-2006. On perusal it transpired that he had not provided complete details of tax deduction pertaining to refund as claimed. The Department completed the verification process to the extent of proof as provided. After verification refund amounting to Rs.1,81,699 was issued vide voucher No.20, dated 29-9-2008. A letter dated 25-7-2008 requesting him for production of original chalans of remaining payments/deductions was issued but no compliance was made. As the complainant has failed to furnish copies of paid/deducted challans the matter could not be settled. He is not entitled to the alleged additional payment as he has not furnished the requisite relevant copies of challan. As the complainant is responsible for non-production of requisite documents, therefore, the complaint may be rejected.

3. In the hearing of the complaint on 12-11-2008 the complainant was represented by Mr Waheed Shahzad Butt, Advocate and respondents by Samia Ijaz DCIT and Ali Mansoor ACIT. A.R of the complainant submitted written arguments in the case and pointed out that he had furnished all the relevant documents to the concerned Taxation Officer on the basis of which IT.30 forms were issued. The complainant company had ceased to function and record of the relevant period was not available, therefore, determined refund by demand note/IT.30 form may be issued to him. The D.R. submitted that refund of Rs.181,699 for the tax year 2003 out of claim of Rs.3538,551 had been issued to the complainant and if he produced the relevant documents refund of balance amount would also be issued. The DR added that IT.30 form did not entitle the complainant for issuance of refund. The AR of the complainant produced the original cheque of payment for Rs.1,81,699 which had not been cashed for want of advice to the Bank which showed that respondents had no intention of paying refund to the complainant.

4. From documents produced by the complainant, it transpires that the Taxation officers had determined refund for the tax year 1994-95 on the basis of relevant documents. The case being old the complainant can not be held solely responsible for non-production of original relevant documents which were allegedly submitted to the Taxation Officer. The respondents have not given any explanation for absence of the relevant record on the basis of which IT.30 Forms were issued. They have also not mentioned if any effort was made to search the relevant papers from the file of the Department. It has been observed that assessment records are not been properly maintained and invariably in case of refund their absence is pleaded to deny the relief. It is therefore, recommended that:-- (i) The respondents should issue as per law the refund claim of the complainant for the tax years in respect of each IT.30 form or order determining refund of the complainant. (ii) Compliance to be reported within 30 days from the date of receipt of finding. H.B.T./14/FTO Order accordingly.