Section 170: Refunds

170. Refunds.— (1) A taxpayer who has paid tax in excess of the amount which the taxpayer is properly chargeable under this Ordinance may apply to the Commissioner for a refund of the excess. 1[(1A) Where any advance or loan, to which sub-clause (e) of clause (19) of section 2 applies, is repaid by a taxpayer, he shall be entitled to a refund of the tax, if any, paid by him as a result of such advance or loan having been treated as dividend under the aforesaid provision.] (2) An application for a refund under sub-section (1) shall be – (a) made in the prescribed form; (b) verified in the prescribed manner; and (c) made within 2[three] years of the later of - (i) the date on which the Commissioner has issued the assessment order to the taxpayer for the tax year to which the refund application relates; or (ii) the date on which the tax was paid. (3) Where the Commissioner is satisfied that tax has been overpaid, the Commissioner shall — (a) apply the excess in reduction of any other tax due from the taxpayer under this Ordinance; (b) apply the balance of the excess, if any, in reduction of any outstanding liability of the taxpayer to pay other taxes; and (c) refund the remainder, if any, to the taxpayer. (4) The Commissioner shall, within 3[sixty] days of receipt of a refund application under sub-section (1), serve on the person applying for the refund an order in writing of the decision 4[after providing the taxpayer an opportunity of being heard]. 1[(5) A person aggrieved by— (a) an order passed under sub-section (4); or (b) the failure of the Commissioner to pass an order under sub- section (4) within the time specified in that sub-section, may prefer an appeal under Part III of this Chapter.] 2[(6) The Board may make rules regulating procedure for expeditious processing and automatic payment of refunds through centralized processing system with effect from a date to be notified by the Board.]

Effective date: 2001-09-13

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