The Federal Board of Revenue has approached the Islamabad High Court challenging the jurisdiction of the Federal Tax Ombudsman and a presidential decision regarding property valuation matters.
According to court proceedings, the petition was filed under Article 199 of the Constitution through counsel Hafiz Ahsan Khokhar. The case was heard by Justice Khadim Hussain Soomro.
During the initial hearing, the court issued notices to the President of Pakistan through the Principal Secretary, the Federal Tax Ombudsman, and other respondents, seeking their replies.
The petitioner argued that the Federal Tax Ombudsman had exceeded its authority by issuing recommendations in 23 cases related to real estate valuation and policy matters, which fall outside its legal domain.
The counsel for the Federal Board of Revenue stated that under Section 9(2) of the FTO Ordinance 2000, issues related to tax assessment and policy formulation are beyond the jurisdiction of the ombudsman.
The petition further contended that although the President acknowledged limitations in the ombudsman’s jurisdiction, the ruling still implied that such restrictions were not absolute.
FBR maintained that the recommendations issued by the Federal Tax Ombudsman did not constitute misuse of authority, but emphasized that the ombudsman has no legal mandate to issue directives on policy formulation.
The board requested the court to declare the recommendations, related implementation notices, and the presidential order illegal, and to suspend their enforcement until a final decision is reached.
The petitioner also argued that the Revenue Division and FBR cannot be deprived of their statutory powers through administrative orders. The court adjourned the hearing after issuing notices to all parties for further proceedings.