ISLAMABAD: The Supreme Court on Wednesday observed that the Federal Board of Revenue (FBR), being the highest tax collection body of the country, should be most transparent in its functioning.

Headed by Chief Justice of Pakistan (CJP) Qazi Faez Isa, a three-judge Supreme Court bench also imposed a cost of Rs10,000 upon the petitioner, Commissioner of Inland Revenue, Peshawar, for wasting court’s time with a direction to deposit the amount to a charity organisation of choice within a week. The court, however, rejected the appeal filed by the Commissioner of Inland Revenue, Peshawar.

This case is a good example that it was not well presented before the court, the CJP regretted.

The Supreme Court also noted it expected the FBR to ensure that all its orders and directions, that may affect the taxpayers, were duly gazetted and displayed on its website for information of the masses.

During the hearing of an appeal filed by the FBR Inland Revenue, Peshawar, it transpired that the Deputy Commissioner of Inland Revenue used the authority of re-assessment of tax of respondent Messers Shiraz Restaurant without any proper delegation of the authority by the Income Tax Commissioner.

When the court inquired from assistant commissioner Sohail Ahmed whether any notification was issued regarding delegation of powers to the DC of Inland Revenue, he replied in negative, and also could not produce the same in writing.

The court noted that in the re-assessment order, the assistant commissioner could not refer Section 122 of the Income Tax Ordinance with regard to the delegation of powers and observed that it makes it doubtful whether the matters falls within the jurisdiction of Section 122(4) of the ITO or not.

The Supreme Court also regretted that the notification regarding the delegation of power to assess the tax was also not uploaded on the website of the tax collection body.

The CJP expressed his surprise saying it was beyond our comprehension why the order regarding the delegation of powers was kept concealed and regretted that such orders were used in some appropriate cases, while in others they are suppressed.

“We expect from the highest tax collecting bodies that the manner in which it operates, if it does not generate confidence among the public, how it would complete its function of collecting more taxes,” the CJP observed.

If an officer of such a level was not aware of the order regarding delegation of powers, then this was a matter of concern, and it also gives further credence to the fact that such orders should be gazetted and displayed at the website.

The court also ordered that the copy of the present direction be sent to FBR for circulation to all directors and commissioners.

Published in Dawn, September 28th, 2023