ATIR declares FBR’s IRIS notices invalid, says only email or fax legally acceptable

In a significant ruling, the Appellate Tribunal Inland Revenue (ATIR) Islamabad has held that notices served through the FBR’s IRIS system are not legally valid.

The case arose when a taxpayer, who had filed returns under section 120(1)(b) of the Income Tax Ordinance 2001, was later subjected to proceedings over property transactions in Tax Year 2022. An ex-parte order was passed, which the taxpayer contested, arguing that notices were never lawfully served.

The tribunal agreed, noting that FBR had only uploaded the order on the IRIS portal without using any of the valid service methods prescribed under section 218 of the Ordinance. The order pointed out that FBR’s argument—that IRIS-based notices amount to valid service—has no backing in law.

ATIR underlined that IRIS is simply a web-based tax management tool, not a medium authorized for service of notices. Legally, only facsimile (fax) and email qualify as electronic service methods.

The bench further clarified that improper service impacts the appeal limitation period under section 131, which begins only when the taxpayer has actual knowledge of the order. Thus, any recovery action taken before lawful service of notice would be open to challenge.

The tribunal stressed that unless tax rules are amended, FBR cannot rely on IRIS alone, and taxpayers must be served through recognized legal modes.