ISLAMABAD: The Federal Tax Ombudsman (FTO) has ruled that simply placing tax notices on the Federal Board of Revenue’s (FBR) IRIS portal does not constitute valid or legal service to taxpayers under tax law.
In a significant order, the FTO clarified that the mere uploading of notices on the IRIS system does not satisfy the legal requirements of service under Section 218(1)(d) of the Income Tax Ordinance, 2001, read with Rule 74 of the Income Tax Rules, 2002. The order emphasized that taxpayers cannot be expected to monitor their IRIS accounts daily and must be informed via SMS or email alerts.
The case involved a 78-year-old taxpayer who had declared lawful income sources, including salary, exempt share from an AOP, pension, and bank profits. His audit was selected through a computer ballot for tax years 2014 and 2015.
Highlighting concerns of fairness and natural justice, the FTO ordered the FBR to revisit assessment orders confirmed by the Commissioner (Appeals-III), Karachi, on January 12, 2024. The FTO has directed that the case be sent back to the original officer (DCIR) for a fresh hearing.
Additionally, the Commissioner Zone-III, RTO-II Karachi, has been ordered to detach the taxpayer’s bank accounts, and the FBR Member Operations has been asked to launch an inquiry into the conduct of the assessing officer.
The FTO stressed the importance of fairness and due care by tax authorities, especially when dealing with senior citizens.
