2012 PLP 1488 (PTD)
WAHEED SHAHZAD BUTT Versus SECRETARY, REVENUE DIVISION, ISLAMABAD
| Citation | 2012 PLP 1488 (PTD) |
| Forum / Court | Federal Tax Ombudsman |
| Bench Members | Dr. Muhammad Shoaib Suddle, Federal Tax Ombudsman |
| Parties | WAHEED SHAHZAD BUTT Versus SECRETARY, REVENUE DIVISION, ISLAMABAD |
| Primary Law | Income Tax Ordinance (XLIX of 2001) |
Q1: What are the key laws and sections cited in 2012 PLP 1488 (PTD)?
This judgment primarily cites: Income Tax Ordinance (XLIX of 2001) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2012 PLP 1488 (PTD)?
The case was heard and decided by the Federal Tax Ombudsman bench comprising: Dr. Muhammad Shoaib Suddle, Federal Tax Ombudsman.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2012 PLP 1488 (PTD) (WAHEED SHAHZAD BUTT Versus SECRETARY, REVENUE DIVISION, ISLAMABAD). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Ss. 153(1) (b) & 153(6)
Federal Tax Ombudsman Ordinance (XXXV of 2000), S. 2(3)(ii)
Corporate tax payers
Web portal of the Federal Board of Revenue (FBR)
Tax computation defects in the electronic Income Tax Return
Complainant contended that for corporate tax payers deriving income by providing/rendering services chargeable under Ss. 153(1)(b) & 153(6) of the Income Tax Ordinance, 2001, the electronic Income Tax Return (IT-1) for Tax year 2010 placed on the Federal Board of Revenue (FBR) web portal gave misleading information to taxpayers and tax payable by them was not being correctly computed; that the electronic Income Tax Return understated a taxpayer's due income tax liability for the tax year 2010 and was not designed to take into account receipts/income liable to tax under normal tax regime, besides the income taxable under the minimum tax regime
Defectively designed electronic return for corporate taxpayers (service sector) showed incompetence, inefficiency and inaptitude on the part of the concerned officials and was tantamount to systematic mal-administration under S. 2(3)(ii) of the Federal Tax Ombudsman Ordinance, 2001
Federal Tax Ombudsman recommended that the Federal Board of Revenue to ensure that in the future a fool-proof electronic Return was placed on the Federal Board Revenue's official web portal; to direct field formations to determine revenue losses that occurred due to defective e-Return, and to take steps to retrieve the loss, without charging any penalty or default surcharge to the concerned taxpayers. Muhammad Munir Qureshi and Hafiz Ahsan Ahmad Khokhar, Advisors Dealing Officer. Waheed Shahzad Butt for the Complainant. Mirza Nadeem Munawar Baig Chief IR Operations, Basit Saleem Shah Secretary IR (General), Mujahid Naeem Manager Automation PRAL Departmental Representatives.
Judgment & Decree
2. The complainant contends that for corporate taxpayers deriving income by providing/rendering services chargeable under section 153(1) (b), read with section 153(6) of the Income Tax Ordinance, 2001 (the Ordinance), the electronic Income Tax Return (IT-1) for Tax Year 2010 placed on the FBR web portal gave misleading information to taxpayers and tax payable by them was not being correctly computed. Specifically, the electronic Income Tax Return understated a taxpayer's due income tax liability for Tax Year 2010 and was not designed to take into account receipts/income liable to tax under Normal Tax Regime, besides the income taxable under the Minimum Tax Regime. The matter was brought to the notice of the FBR by the complainant but the Department did not give him a satisfactory response, compelling him to refer the issue to the Hon'ble Federal Tax Ombudsman as it involved FBR's maladministration in failing to design an error-free Return.
3. The complaint was sent to the Secretary, Revenue Division, for comments which were filed on 19-1-2012 and on 16-4-2012. 4, In response, Mr. Basit Salim Shah, Secretary, IR (General), FBR, submitted that 9887 taxpayers had filed their Returns showing income from services sector (AOP: 1436, Business Individual: 3828, Company: 2707 and Salary Individual: 1916) for the Tax Year 2010. He further submitted that directions had been issued to field formations to carry out the desk audit in all cases for the purpose to point out any short payment in order to award against any possible loss of revenue.
5. It is pertinent to mention that earlier a similar nature Complaint No 158/ISD/IT(88)1346/2011 was decided by this Office with the Recommendations that "FBR to - (i) ensure that in future a fool-proof electronic Return is placed on the FBR's official web portal: (ii) direct field formations to determine revenue loss that has occurred due to defective e-Return; (iii) take steps to retrieve the loss, without charging any penalty or default surcharge to the concerned taxpayers; and (iv) report compliance within 30 days." Findings:--
6. The defectively designed electronic Return for corporate taxpayers (services sector) shows incompetence, inefficiency and inaptitude on the part of the dealing officials and is thus tantamount to systemic maladministration under section 2(3)(ii) of the FTO Ordinance, 2000. Recommendations:--
7. Being an identical nature complaint, the Recommendations already issued in Complaint No.1346 of 2011 shall apply in this case. F.B.R. to submit a compliance report within 15 days. M.W.A./111/FTO Order accordingly.