FAHAD NAJEEB vs The SECRETARY, REVENUE DIVISION, ISLAMABAD Ss — 2025 PTD 817 FEDERAL-TAX-OMBUDSMAN-PAKISTAN |

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FAHAD NAJEEB VS The SECRETARY, REVENUE DIVISION, ISLAMABAD Ss.2(3)(i), 2(3)(ii) & 10(1)---Income Tax Ordinance (XLIX of 2001), S.153(1)(b)---Deduction of income tax from salary of lecturers of Government educational institution---Maladministration---Grievance of the complainant (lecturer of Government College Bannu, hired by the Directorate of Higher Education Government of KPK Peshawar) was that his salary was not liable to tax---Plea of the respondents/FBR was that college authority had hired the complainant /taxpayer who was providing services in private capacity upon which tax was withheld under S.153(1)(b) of the Income Tax Ordinance, 2001---Validity---Record revealed that in view of prolonged recruitment proceedings at Provincial Public Service Commission , the Directorate of Higher Education Government of KPK Peshawar, had evolved a separate and streamlined mechanism for hiring appointment of lecturers on semester to semester basis ; thus, plea of the respondents / FBR was not justified in alleging that college authority had hired the complainant / taxpayer who was providing services in private capacity---Federal Board of Revenue's treatment of the instant cases under S. 153(1)(b) of the Income Tax Ordinance, 2001, was against the dictates of law and excessive tax deductions from the pay/wages of a hired employee of educational institution, which tantamounts to maladministration in terms of Federal Tax Ombudsman Ordinance, 2000---Said discriminatory, unjust and extra legal treatment of salary cases tantamounts to maladministration in terms of S. 2(3)(i) and (ii) of the Establishment of Office of Federal Tax Ombudsman Ordinance, 2000---Federal Tax Ombudsman recommended / directed FBR to ensure that hired lecturers of government educational institutions were not burdened with excess deductions at withholding stage while issuing necessary clarification for all withholding agents to safeguard employees like complainant against excessive deductions---Complaint was allowed accordingly.

FAHAD NAJEEB vs The SECRETARY, REVENUE DIVISION, ISLAMABAD Ss — 2025 PTD 817 FEDERAL-TAX-OMBUDSMAN-PAKISTAN

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