ISLAMABAD: In a significant ruling, the Appellate Tribunal Inland Revenue (ATIR) has strongly reprimanded officials of the Federal Board of Revenue (FBR) for disputing the jurisdictional authority of the Commissioner (Appeals) in a tax litigation case.
The tribunal highlighted that case allocation to the Commissioner (Appeals) is entirely managed through the IRIS digital platform, which automatically assigns cases in accordance with the FBR’s jurisdictional orders.
In a recent case involving FBR’s Special Zone, the ATIR found it contradictory for the tax department to contest the jurisdiction of Commissioner (Appeals) when it had been assigned as per FBR’s own procedural framework.
Tax lawyer Waheed Shahbaz Butt strongly opposed the department’s stance, arguing that FBR’s challenge was baseless and led to unnecessary litigation, ultimately wasting taxpayer funds. He emphasized that the department was attempting to dispute a jurisdiction that had already been clearly defined by existing rules.
The tribunal stressed that adhering to procedural guidelines and respecting jurisdictional boundaries set by the FBR is crucial for maintaining order in tax adjudication.
The ATIR order noted that the department’s primary grievance revolved around the jurisdiction of the Commissioner (Appeals) and the annulment of a Deputy Commissioner Inland Revenue (DCIR) decision.
During the hearing, the departmental representative (DR) was questioned about the nature of the prejudice claimed to have been caused by the Commissioner (Appeals)’ decision. The DR argued that the Commissioner (Appeals) lacked authority, citing a jurisdictional order dated December 14, 2020, which designated Commissioner (Appeals)-I as the competent authority.
However, when asked about how jurisdiction was determined, the DR admitted that the IRIS platform automatically assigns cases based on FBR’s pre-set rules, leaving no discretion for taxpayers to choose their appellate forum.
The ATIR found it contradictory for FBR to challenge its own digital allocation system, ruling that the department failed to show any deviation from jurisdictional rules. Consequently, the tribunal dismissed FBR’s objection, declaring it legally unsustainable.
