Commissioner fined for obstructing financial reimbursement process

The Islamabad High Court (IHC) has imposed a fine of Rs500,000 on the Commissioner Inland Revenue, Large Taxpayer Office, Islamabad for filing a frivolous application aimed at preventing Islamabad Electric Supply Company (IESCO) from receiving reimbursement for funds recovered through bank account attachments. The IHC deemed the application as an attempt to delay and deny the return of funds collected illegally and coercively during a stay order.

Despite multiple opportunities provided to the Commissioner and the tax department to reconcile the amounts collected during the stay order, they continued to provide excuses to avoid reimbursing IESCO. The court highlighted that the Commissioner failed to cite any legal provision for revisiting the Refund Sanction Order and attempting to generate liability against IESCO.

Furthermore, the court noted that the Commissioner and the tax department had previously agreed on refundable amounts, which were later included in the court order dated 28.03.2024. However, the Commissioner's persistent efforts to delay the reimbursement process led to the dismissal of the application and the imposition of a Rs500,000 fine on the Commissioner in her personal capacity for filing a frivolous application.

In conclusion, the IHC's decision to penalize the Commissioner underscores the importance of upholding legal procedures and preventing unnecessary delays in the resolution of financial matters. The ruling serves as a reminder that frivolous applications aimed at obstructing justice will not be tolerated by the court.