Messrs KHAIR-UL-SANAT COTTON GINNERS, PRIVATE LIMITED VS SECRETARY, REVENUE DIVISION, ISLAMABAD
2002 P T D 2804
[Federal Tax Ombudsman]
Before Justice (Retd.) Saleem Akhtar, Federal Tax Ombudsman
Messrs KHAIR‑UL‑SANAT COTTON GINNERS, PRIVATE LIMITED
Versus
SECRETARY, REVENUE DIVISION, ISLAMABAD
Complaint No. 234 of 2002, decided on /01/.
st
July, 2002. Income Tax Ordinance (XXXI of 1979)‑‑‑
‑‑‑‑Ss.96 & 102‑‑‑Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss.2(3) & 22‑‑‑Refund‑‑‑Additional Payment for delayed refund‑‑‑Complaint was made for non‑payment of refund for four. years which amounted to maladministration and compensation @ 15% was also claimed for delay of refund ‑‑‑Validity‑‑ Representative of the Department appeared without the assessment record but; at the same time, readily conceded that refund was due to the complainant; when asked to get confirmation from the concerned Assessing Officer whether the claim of refund had been settled after making necessary verification as per specific instructions of the Regional Commissioner of Income‑tax to resolve the issue by 2‑5‑2002, the Representative of the Department admitted that the matter had not so far been settled‑‑‑Such glaring indifference to the instructions of superiors coupled With obvious attempt to unnecessarily drag the matter very much amounts to maladministration ‑‑‑Federal Tax Ombudsman recommended that necessary verification be made and the refund due to the complainant be issued within 15 days of the receipt of the order that compensation be awarded as per provisions of S.102 of the Income Tax Ordinance and the officer (person not the office) be reprimanded for sleeping over the direction by the Regional Commissioner of Income‑tax and the `counseling" recorded in the ACR.
None appeared for the Complainant.
Habib Ahmad, D‑CIT for Respondent.
DECISION/FINDINGS
The Complainant is aggrieved by non‑payment of refund for four years, which according to him, amounts to "maladministration" The Complainant lists the refund claim as under:‑‑‑
| 1995‑96 | Rs. 9,477 |
| 1999‑2000 | 48,782 |
| 2000 2001 | 139,039 |
| 2001‑2002 | 33,500 |
| Total:‑ | Rs. 230,798 |
Further the Complainant prays for issuing directions to the respondent for payment of compensation @ 15% along-with the above mentioned refund under section 22 of the Establishment of the Office of Federal 'Tax Ombudsman Ordinance.
2. None was present for the Complainant when called out. The complaint is, therefore, taken up for adjudication on merit with the help of the Respondent's Representative.
3. The Respondent's reply vide Letter No.80‑III/FTO‑BWP‑6393 dated 2‑4‑2000 submits as under:‑‑‑
It is correct that the Complainant company filed an application on 19‑2‑2002 requesting for payment of refund amounting to Rs.230,798. The assessee has provided photocopies of challans which are not recorded in the Daily Collection Register. The amounts were actually deposited at Lahore, Karachi etc., The concerned officer has already issued letters to the concerned Date Processing Center for verification of Challans. The concerned Officer has been directed to get the claim refund settled after necessary verification within a month (up to 2‑5‑2062).
3. The Representative of the Respondent appeared without the assessment record but, at the same time, readily conceded that refund aggregating Rs.230,798 is due to the Complainant. When asked to get confirmation from the concerned Income Tax Office whether the claim of refund has been settled after making necessary verification as per specific instructions of the R‑CIT, Central Region, Multan, to resolve the issue by 2‑5‑2002; the Representative of the Department admitted that the matter has not so far been settled. This glaring indifference to the instructions of superiors coupled with obvious attempt to unnecessarily drags the matters very much amounts to "maladministra tion". It is, therefore, Recommended that:‑‑
(i)Necessary verification be made and the refund due to the Complainant be issued within 15 days of the receipt of this order.
(ii)Compensation be awarded as per the provisions of section 102 of the Income Tax Ordinance.
(iii)The officer (person not the office) be reprimanded for sleeping over the direction by the R‑CIT and the "Counseling" recorded in the ACR.
4. Compliance report be submitted within 30 days of the receipt of this order.
C.M.A./M.A.K./431/FTO
Order accordingly.