FINDINGS /DECISION ' Maladministration is alleged in the instant complaint for demanding income-tax amounting to Rs,363,362 on income assessed at Rs,792,000 in an ex parte order for assessment year 1998-99 by Mr. Taj Hamid, DCIT, Company Circle 12, Peshawar on 18-1-2001 and for dismissal of revision petition filed under section 138 with the CIT, Companies Zone, Peshawar, Mr. Khawas Khan Niazi vide his order dated 14-1-2002.
2. Facts emerging from the written reply submitted by the RCIT, Northern Region, Islamabad in response to notice under section 10(4) of the Establishment of Office of Federal Tax Ombudsman Ordinance, 2000 hereinafter called "Ordinance XXXV of 2000" and submissions made on behalf of the two parties at the time of hearing are that the complainant a Private Limited Company derives profits and gains from an industrial undertaking that fulfils the requirement of clause (118C) of Part I of the Second Schedule to the Income Tax Ordinance, 1979.
3. First return of income for assessm ent year 1995-96 was filed claiming exemption from tax for its profits and gains under clause (118C) (supra) for a period of 8 years. The claim of exemption from tax was rejected by the DCIT. The CIT (Appeals) set aside the orders but the remanded issue was again decided against the assessee who filed a complaint for arbitrary refusal of exemption in assessm ent years 1995-96 to 1997-98 with this office. It was registered as C-836/2001 and decided on 25-9-2001 recommending grant of exemption from tax by invoking provisions of section 138 suo motu. The CIT, Companies Zone, Peshawar complied and allowed exemption from tax to profits and gains for assessm ent years 1995-96 to 1997-98. However, he failed to take suo motu notice or arbitrary refusal to allow exemption that had already been granted for a period of eight years from assessm ent year 1995-96. The maladministration is established.
4. It is recommended that CIT, Companies Zone, Peshawar rectifies his order passed under section 138 on 14-1-2002 dismissing assessee's petition on point of limitation while the issue warranted suo motu notice to grant the relief arbitrarily denied to the petitioner:
5. Compliance be reported by June 30, 2002.