IHC Seeks FBR’s Reply Over New Tax Return Form

The new tax return form of the Federal Board of Revenue (FBR) was challenged in the Islamabad High Court (IHC) on Monday.

The petition has been filed against the FBR’s move to remove the provision for the refund adjustment of past years from the income tax returns. IHC has directed the FBR to submit its reply by September 29, 2022.

The petitioner, Ejaz Hussain Rathore, who is a practicing Chartered Accountant and has remained the President of Rawalpindi/ Islamabad Tax Bar Association, has sought a direction from the FBR to upload the returns of the total income of IRIS which is in conformity with the notification (SRO. 978(I)/2022 which includes a provision for the refund adjustment of other year(s) against the demand for the current year in line No.92101.

The petitioner appeared in person and submitted that as per the consistent past practice, the refund adjustment of other year(s) against the demand of tax for the current year, always appeared in the tax return forms issued by the FBR; that the Income Tax Rules, 2002 notified through Notification (SRO. 820(I)/2022) dated 21.06.2022 also had similar provision and so also the final notification dated June 30, 2022, but the tax return forms uploaded by the FBR does not have any provision for the refund adjustment of other year(s) against the demand for the current year; that by omitting such a provision in the tax return forms, the respondents have acted in violation of the applicable Rules; that such an omission amounts to the petitioner’s fundamental rights; that if a provision for such a refund is not included in the tax return forms, it would amount to unjust enrichment of the State. Issue notice to the respondents.

On Court’s call, Advocate Syed Ishfaq Hussain Naqvi, who is on the penal of the lawyers of the FBR, tendered an appearance and accepted notice on behalf of the FBR and sought some time to submit a report.



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