Insaf Law Associates

29/06/2026

Finance Act 2026

08/06/2026

https://www.brecorder.com/news/40424476/wht-credit-allowed-despite-cpr-section-code-error-atir

(ATIR) Islamabad has categorically held that a taxpayer cannot be denied credit of withholding tax merely because the withholding agent typed a wrong section code on the (CPR). Such denial is unlawful and equivalent to unwarranted confiscation of taxpayer’s money for frivolous reasons.

taxpayer had previously secured a decision in its favour from the ATIR in October 04, 2021, which was *upheld by the IHC in ITR No.09/2022 with costs imposed on the tax department for delay in processing the refund to constitute maladministration.
The key legal propositions settled by the Tribunal are very crucial that wrong CPR Section Code is not fatal, Section 168 is a mandatory entitlement, subsfrivolous litigation at Rs.100,000/-.* Despite these binding orders, the department employed prolonged delay tactics. The taxpayer consequently approached the FTO, wherein the FTO found the department’stance over form prevails, burden cannot shift to taxpayer for agent’s error and refund delays constitute maladministration:

ISLAMABAD: Appellate Tribunal Inland Revenue (ATIR) Islamabad has categorically held that a taxpayer cannot be...