ISLAMABAD: The Federal Tax Ombudsman (FTO) has ordered the Federal Board of Revenue (FBR) to ensure that a pending tax application filed by M/s Bankers Avenue Society Limited, Lahore, is decided within 20 days, observing that a statutory time period does not oblige the tax authority to delay a decision until the last day.
Federal Tax Ombudsman M. Zafar ul Haq Hijazi issued the direction while deciding a review petition filed by the company. The matter related to an application submitted on February 17, 2026 under Section 221 of the Income Tax Ordinance, 2001.
The company had also raised objections regarding its income tax assessment for Tax Year 2018. The assessment was framed on June 24, 2024 under Section 122 of the Income Tax Ordinance. The company’s appeal against that assessment was dismissed by the Appellate Tribunal Inland Revenue, Lahore, on October 2, 2024.
Earlier, the FTO had dismissed the complaint on August 13, 2026 on the grounds that issues relating to the assessment had already been adjudicated by the Appellate Tribunal and, therefore, could not be examined further by the Ombudsman.
Subsequently, the company filed a review petition and contended that its application under Section 221 was an independent issue and had not been decided by the Appellate Tribunal. The FBR department accepted that the application had been filed and informed the Ombudsman that the competent authority would decide it in accordance with law.
The review hearing took place on September 30, 2026 at the FTO office in Lahore. The department was represented by the Commissioner Inland Revenue, Zone V, Chief Tax Office Lahore. The representative of the complainant did not appear despite service of notice. The matter was, therefore, decided on the basis of written arguments and the documents available on record.
In his order, the Ombudsman noted that Section 221 provides a statutory mechanism for rectifying mistakes that are apparent from the tax record. The order stated that the statutory period for the application filed on February 17, 2026 had not yet lapsed. However, it added that the availability of such period did not mean that the authority was required to keep the matter pending until the final day.
The FTO observed that the application had been pending since February 17 and that the department had not pointed out any specific reason that could justify delay in its disposal. The order said an early decision would bring certainty for the parties and help avoid unnecessary delay.
The Ombudsman accepted the review petition only to the extent of the pending Section 221 application. He directed the FBR to instruct the concerned Commissioner to decide the application within 20 days of receipt of the order and strictly in accordance with law. The Commissioner was also directed to submit a compliance report within the prescribed period.
The FTO clarified that the order did not determine the merits of the company’s Section 221 application or whether it should be accepted. The direction was confined only to timely disposal of the pending application. The assessment-related issues already decided by the Appellate Tribunal were not reopened.
