LAHORE: The Federal Tax Ombudsman (FTO) has adjourned the hearing of a case filed by M/s Cotton Web Pakistan Private limited against the Regional Tax Office-II (RTO-II) until the next date.
FTO Consultant Tariq Yousaf heard the case of M/s Cotton Web Pakistan Private in which counsel for the appellant argued that the RTO has been failing to release the sales tax refunds for the last two years claimed by the company.
He said the RTO-II has been collecting excessive tax from the company for the last two years. They approached the commissioner concerned many times for release of the refunds but RTO-II officials did not pay the refunds after the passage of a reasonable time.
At the end, the company decided to approach the FTO seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims.
The counsel further said the RTO should refund the excess collection in wake of taxes by the end of financial year but the situation is quite otherwise. Delay in release of refunds puts the burden on the taxpayers, he said, adding the RTO should audit the cases and release the extra amount collected by it from the taxpayers.
On the other hand, counsel for RTO contended that the appellant M/s Cotton Web Pakistan Private has not submitted all the record in the office on which basis it is claiming for refunds. If appellant provides an accurate record, the RTO will issue the refunds, if any, after a proper assessment.
After hearing the arguments from both sides, the FTO postponed the case until for further hearing and directed the parties to appear on the next date to present arguments in the case.
