ISLAMABAD, Feb 26: Federal Tax Ombudsman (FTO) Justice Saleem Akhtar (retired) on Wednesday directed the Central Board of Revenue (CBR) to immediately release the withheld compensation amount of Rs160.056 million to a complainant.

The ombudsman observed that lack of response in this behalf and delay in payment of compensation to the complainant without reasonable ground showed inefficiency, ineptitude and incompetence of the tax officials.

According to the judgment, the compensation amount should be released to the complainant within 45 days of the receipt of the order.

This falls within the definition of maladministration as defined under Section 2(3) of the establishment of the office of federal tax ombudsman, 2002, observed the justice.

The complainant, M/s Emirates Bank International, pleaded non-payment of compensation for the assessment years 1981-82 to 1988-89, respectively.

It was further pleaded that repeated requests were made for issuance of compensation relating to the assessment years 1979-80 onwards and despite written efforts and personal visits from time to time, the compensation was not issued by the tax department.

The ombudsman observed that it was liability of tax department to issue compensation within three months of the creation refunds if the refund was not paid or adjusted.