Ombudsman directs Commissioner to decide Section 221 application without further delay

ISLAMABAD: The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to dispose of a pending application under Section 221 of the Income Tax Ordinance, 2001, within 20 days.

The direction came while deciding a review petition filed over the non-disposal of the application and related income tax assessment issues concerning Tax Year 2018.

The FTO noted that the assessment-related matters had already been decided by the Appellate Tribunal Inland Revenue (ATIR), Lahore, on October 2, 2024, and were not reopened during the review proceedings.

The complainant maintained that the pending Section 221 application was a separate matter requiring consideration. The tax department acknowledged receiving the application and stated that the competent authority would decide it in accordance with the law.

The FTO observed that although the statutory period under Section 221(3) had not expired, the authority was not required to wait until the deadline before taking action. It said early disposal would provide certainty to the parties and ensure the statutory remedy was addressed without unnecessary delay.

The FTO therefore accepted the review petition to the limited extent of the pending application and recommended that the concerned Commissioner dispose of it within 20 days of receiving the order.

The ombudsman clarified that the recommendation concerned only the timely disposal of the application and did not express any view on its merits or eventual outcome.

The Commissioner was also directed to submit a compliance report within the stipulated period.