Islamabad:Federal Tax Ombudsman (FTO) Zafar Hijazi has ruled that the Federal Board of Revenue cannot lawfully retain money recovered under an assessment order once that order has been set aside by the appellate authority.
"Once an assessment order is annulled in appeal, it ceases to exist in the eyes of law. Consequently, the legal basis for recovery also disappears and the recovered amount cannot be withheld merely because reassessment proceedings are pending," declared the ombudsman. Hijazi directed FBR to immediately implement the appellate order by lifting the bank attachment, decide the refund application strictly in accordance with law, and submit a compliance report within 45 days.
