KARACHI: The Supreme Court of Pakistan dismissed a civil review petition filed by the Commissioner Inland Revenue against an order that quashed the amendment of assessment made by the Deputy Commissioner, Inland Revenue. The court observed that the Deputy Commissioner was not authorized to amend the assessment under section 122 of the Income Tax Ordinance, 2001 and that the order delegating such powers to him was not gazetted or available on the website of the Federal Board of Revenue (FBR).
The court noted that the matter pertained to the amendment of assessment, which is a statutory power of the Commissioner, and that the order dated 5 December 2009, issued by the Commissioner Inland Revenue (Audit-I), Regional Tax Office, Peshawar did not refer to section 122 of the Ordinance nor grant such specific authorization to the Deputy Commissioner. The court also expressed its displeasure over the concealment of the said order by the FBR and its senior officers, who failed to produce it at the time of hearing the appeal despite being given an opportunity to do so.
The court said that opaqueness perturbs them and that taxpayers should know who is exercising authority and whether such exercise of authority is permissible. The court also remarked that this civil review petition was a classic example of a case not properly presented and imposed costs of ten thousand rupees on the petitioner to be paid to a charity of his choice.
Sharjeel Jamal, Convener FPCCI Advisory Committee, welcomed the judgment of Supreme Court of Pakistan (SCP) that taxpayers should know who is exercising authority. He said FPCCI had made these recommendations several times, and appreciated SCP took their point.
Sharjeel Jamal said for many years they are proposing that all TP should be scanned and scanners are installed at all borders. SCP also advised Customs Adjudication to place all their orders on their website.
Jamal said Appellate Tribunals are said to be the hub of corruption and most of the judgments are actually sold. There is a need that Tribunals also place their cases on their websites. Cases remain pending for decades and judgment is not issued until Tribunals are bribed.