MASUD REZA vs The FEDERATION OF PAKISTAN Ss — 2025 PTD 451 ISLAMABAD

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MASUD REZA VS The FEDERATION OF PAKISTAN Ss. 2(3)(i), 2(3)(1)(b), 10 & 14(6)---Income Tax Ordinance (XLIX of 2001), Ss. 140 & 128(1A)---Assessing Officer, responsibilities of---Stay order, non-compliance of---Maladministration---Grievance of the taxpayer emanated from the refusal of the Department to abide by the stay order issued by the Commissioner Appeals and despite the passage of same (stay) the bank accounts of the petitioner were not detached---Taxpayer filed complainant before the Federal Tax Ombudsman who declared the non-compliance of stay order as maladministration---Petitioner /taxpayer impugned an order passed by the President of Pakistan, whereby findings and recommendations of the Federal Tax Ombudsman (FTO) were set-aside on a representation filed by respondent/Federal Board of Revenue (FBR)---Validity---Considerations that prevailed with the President of Pakistan were that the Federal Tax Ombudsman ('FTO') had exceeded his authority by interfering with the matter of assessment of tax and interpretation of law; which obviously was not the case---Question of legality of the assessment order passed against the taxpayer had been settled by the Appellate Tribunal Inland Revenue---Question before the FTO was with regard to the maladministration on part of Assessing Officers as defined under S. 2(3)(1) of the Establishment of Office of Federal Tax Ombudsman Ordinance, 2000 ('the FTO Ordinance, 2000')---Finding of the FTO was that the failure or refusal of the relevant tax officials to honor and implement the stay order issued by the Commissioner Appeals was perverse, arbitrary, unjust and oppressive, and that conduct falls within the definition of maladministration under S. 2(3)(1)(b) of the FTO Ordinance, 2000---After reaching such conclusion, the FTO issued recommendations to the Chief Commissioner Inland Revenue to take suitable action against the officials responsible for failure to comply with the order of the Commissioner Appeals---Such recommendations fall within the powers vested in the FTO under S. 14(6) of the FTO Ordinance, 2000---High Court set-aside the decision of the President of Pakistan for not being in accordance with law, and upheld the decision of the FTO, directing the FBR to ensure the re-commendation passed by the FTO was given effect in accordance with provisions of law---Constitutional petition, filed by the taxpayer, was allowed, in circumstances.

MASUD REZA vs The FEDERATION OF PAKISTAN Ss — 2025 PTD 451 ISLAMABAD

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