ISLAMABAD: The Federal Tax Ombudsman has declined a review petition challenging its earlier findings in Complaint No. 02924/LHR/ST/2026, holding that no error apparent on the face of the record existed to justify review. At the same time, the Ombudsman has directed the Inland Revenue authorities to undertake a comprehensive examination of a separate issue of alleged maladministration that came to light during the review proceedings.
The order explains that the original findings correctly reflected the factual record available when they were rendered and therefore could not be reopened merely because additional material surfaced later.
During the review proceedings, however, the production of complete official records disclosed a distinct administrative issue relating to the accounting and treatment of payments admittedly received from the taxpayer during investigation proceedings and their subsequent treatment while implementing the order of the Appellate Tribunal Inland Revenue (ATIR) and processing the taxpayer’s claim.
The FTO observed that although legal issues arising from the underlying tax dispute are presently pending before the Lahore High Court, such pendency does not relieve the tax administration of its continuing obligation to correctly account for taxpayers’ payments, faithfully implement appellate orders and ensure that no maladministration occurs in the discharge of its statutory functions.
Accordingly, the Ombudsman has directed the Chief Commissioner Inland Revenue concerned to conduct, through an officer not below the rank of Commissioner Inland Revenue, a comprehensive examination of all payments received from the complainant, verify their legal character from the official record, determine whether due effect has been given to each payment and pass a reasoned speaking order after providing the taxpayer a full opportunity of hearing. Where any omission, computational error or other instance of maladministration is found, corrective action has been ordered in accordance with law.
The exercise has been directed to be completed within sixty days, with compliance to be reported to the FTO Secretariat within fifteen days thereafter.
The order also reiterates an important principle governing proceedings before statutory adjudicatory forums. It emphasizes that while parties are fully entitled to advance competing legal arguments, factual assertions must remain accurate, complete and capable of verification from official records. The Ombudsman further observed that professional decorum and measured advocacy strengthen the administration of justice, whereas personalised or intemperate allegations serve no useful purpose.
The order expressly clarifies that the recommendations neither reopen the earlier findings nor express any opinion on issues pending before the Lahore High Court. Their sole purpose is to ensure administrative accountability by examining and resolving a surviving issue of alleged maladministration strictly within the jurisdiction conferred upon the Federal Tax Ombudsman under law.
