DECISION /FINDINGS This is a complaint by an AOP relating to non-payment of refund resulting from income-tax reassessm ent in its case for the assessment year 1991-92.
2. In the respondent's reply it has been stated refund of Rs.93,848 has been created by the ACIT, Circle 11, Bhakkar but the demand of Rs.60,459 outstanding against one of the members of the AOP is to be adjusted against the refund.
3. During the hearing the authorized representative of the complainant accepted that the refund had been correctly worked out and also accepted, in principle, that tax liability of the member of the AOP is adjustable against the refund as provided by law. The respondent may, therefore, make adjustment of the tax demand outstanding in the case of the member of the AOP against the AOP's refund, but only to the extent provided in section 77(3) of the Income Tax Ordinance viz. Only to the extent that the tax demand is in respect of the member of the AOP's share of income in the AOP.
4. In the light of the above it is recommended that:
(i) Refund be paid to the complainant in the light of the observations at para. 3 above.
(ii) Compliance be reported within 30 days. .