FTO Orders FBR To Review Orders For Duplicate Illegal Assessments.

The FBR circular dated 30-06-2015, which states that no notice under the Income Tax Ordinance 2001 is to be issued to taxpayers w.e.f. 01-07-2015 without a system-generated barcode, has been violated. The Federal Tax Ombudsman (FTO) has ordered FBR to reexamine the duplicate illegal assessment orders for the tax years 2016, 2017, and 2020 that were issued in violation of the circular.
The complaint’s basic facts stated that the complainant was a person who was in the business of operating a rice husking mill. For the tax years 2016, 2017, and 2020, the Inland Revenue Officer, RTO Hyderabad, conducted a withholding audit and issued handwritten orders.
The agency then issued a show-cause letter to once again withhold the audit for the aforementioned years. However, the previous officer had previously been monitoring withholding audits for these years.
However, the unit officer issued bar-coded assessment orders through IRIS for Tax Years 2016 and 2017 and 2018, resulting in a tax liability of Rs. 35,746,758, Rs. 19,517,692, and Rs. 29,405,862 accordingly. This was done without looking into the circumstances. The complaint submitted rectification and modification applications in accordance with Sections 221 and 122A of the ordinance, but received no answer.
He addressed the issue with the Federal Tax Ombudsman as a result. The FTO said that, in accordance with Section 161/205 of the Ordinance, manual assessment orders for the tax years 2016, 2017, and 2020 were issued on December 25, 2017, August 17, 2018, and August 18, 2020, respectively.
The relevant demand and collection registration of the unit could not be used to verify the false DCR numbers found on the manual orders. A loss of legal government revenue resulted from the failure to carry on even the meagre tax demand generated in this dubious manner for recovery action in the following year.