Section 176 notices: IHC sets aside FTO’s findings against tax official

Business Recorder reported that the Islamabad High Court has annulled a Federal Tax Ombudsman recommendation to discipline a tax official over notices he issued under Section 176. The ruling came in case W.P.NO.3402 of 2020, brought by Raashid Mahmood Khan against the President of Pakistan and others. The court concluded that the ombudsman's finding lacked enough material showing misconduct or maladministration.

The petitioner had obtained bank information and issued the notices while audit proceedings against a taxpayer were pending. The court observed that departmental approval for obtaining the information was on record, and that the taxpayer later joined the Tax Amnesty Scheme, 2019 and dropped its personal malice claim. Jurisdiction over the case was shifted on 07.05.2019, and the court found these facts did not show personal hostility or deliberate abuse of authority.

Two other recommendations, concerning the case transfer and Tax Year 2013 proceedings, were held infructuous because the transfer occurred and those proceedings became time-barred on 30.06.2019. Only the recommendation on disciplinary action was examined on its merits and set aside, together with the President's order that had rejected the challenge to it. The remaining recommendations were left unaffected, and the court made no order as to costs.