ISLAMABAD, AUGUST 20: The Commissioner of the IR Corporate Tax Office in Islamabad, Faisal Mushtaq Dar, has been served with a contempt of court show cause notice by the Islamabad High Court (IHC) for making misleading representations in court regarding the enforcement of directives made by the Federal Tax Ombudsman.
Bloom Pakistan was informed by sources that the IHC has issued a stern order against FBR Commissioner, CTO, Islamabad, for failing to appear in person on August 29, 2024, due to a contempt of court case.

Let a show-cause notice be issued to respondent Muhammad Faisal Mushtaq Dar, CIR, Islamabad, according to the IHC order. He must appear in person and explain to the court why contempt proceedings should not be brought against him for making a false representation in the Writ Petition and for failing to inform the court that the FTO’s recommendation to revisit the order passed under section 120(4) has not been followed.

Upon reaching out to the correspondent, Waheed Shahzad Butt, a tax lawyer, informed them that the ATIR had previously noted in this matter that it is essential for all statutes to be enforced justly and fairly, and that public servants are required by the constitution to act justly and fairly.

In regard to tax refund cases, CTO is engaged in manipulating the tax system and obstructing the legal process, contrary to the directives of the Chief Justice of IHC. Regretfully, without regard for consequences, CIR, Add-CIR, and ACIR in this case openly flout the legally binding rulings of the Apex Court. The budgetary laws of our nation do not allow for “unfettered discretion,” and the arbitrary use of discretionary powers ought to be abolished.

The petition was dismissed because the Tax Department misrepresented itself before the court. The petitioner claims that after filing a complaint before the FTO, which rendered a decision, it was noted that the petitioner had submitted their tax return for the 2018 tax year and that the Tax Department had been instructed to review the Section 120 order that the IHC had issued.

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