ISLAMABAD: The Federal Board of Revenue (FBR) has come under criticism for failing to implement a key directive from the Appellate Tribunal Inland Revenue (ATIR), which required the board to instruct all field formations to enforce tribunal orders within the mandatory two-month period.
Under Section 124(4) of the Income Tax Ordinance, 2001, the FBR is legally bound to ensure that ATIR decisions are implemented within two months. However, the tribunal noted continued delays and non-compliance, warning that any deliberate or willful defiance would lead to serious consequences — including possible referral to the Federal Tax Ombudsman (FTO) for action.
The ATIR observed that once its orders attain finality, they are binding and must be implemented unless suspended or set aside by a higher forum. “Any omission or delay in implementing a judicial pronouncement constitutes maladministration, erodes the rule of law, and undermines public trust in tax administration,” the tribunal stated.
When contacted, tax lawyer Waheed Shahzad Butt, who represented the case, said that the FBR was willfully defying lawful directions to manipulate performance figures and artificially inflate tax demand statistics. He argued that such disregard for judicial and quasi-judicial authority reflects a deep-rooted administrative malaise within the tax machinery.
The tribunal directed the FBR chairman to issue immediate instructions to all field offices to strictly observe Section 124(4), uphold institutional credibility, and prevent unnecessary litigation.
