ISLAMABAD: The Federal Board of Revenue has started selecting cases for manual audit under Section 177 of the Income Tax Ordinance, 2001.
According to details, taxpayers are being asked to appear before commissioners concerned with relevant documents for manual audit through Section 177 notices.
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Moreover, the tax department is directing taxpayers to make payments before audit completion instead of providing hearing opportunity to the taxpayers to clarify their position in case of any discrepancy in the records. The tax department, which is restricted as per law to provide specific time to the taxpayers for producing the records, is not mentioning any date on the notices, reflecting the intention of the department to generate substantial revenue till the end of current fiscal year.
According to reports, taxpayers are receiving both audit notices – income tax and sales tax with the verbal restriction not to adjust pending tax refunds against tax demand.
