Nowadays, CBR is moving in the right direction of improving its image before the taxpayers. Member Human Resource (HRM) of CBR has taken some concrete steps in curbing the discretionary powers of taxation officers, but has not yet addressed the problem at its root cause. The member HRM is still quiet about the real fact, that is, the pressure of collecting assigned targets. When it is necessary to start by doing the necessary, then the possible and then the sudden, CBR will always start doing the impossible. This article is an endeavor to analyse this root cause and causa causins of the problem, apart from the suggestive solution related thereto.
Facets of Problem
The problems relating to assessments, obtain refunds and/or their adjustment is not new to taxpayers. The taxpayers are paying huge cost to get back refund. They have to engage in legal battles (thus to pay fees to attorneys) or gratification to the department to obtain what is their lawful right. The infant baby, Income Tax Ordinance, 2001 [hereinafter referred to as ITO 2001] is also following the footsteps of his father, Income Tax Ordinance, 1979, [hereinafter referred to as ITO 1979] which is construed from the attitude of Grandfather, Income Tax Act, 1922 [hereinafter referred to as ITA 1922] in respect of refunds and adjustments.
In order to understand the problem we must first go through section 170 & 171 of Income Tax Ordinance, 2001. Section 170 and 171 are read as follows.