ITO Section 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. 

[(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  [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 [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 [after providing the taxpayer an opportunity of being heard].

[(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 subsection (4) within the time specified in that sub-section, may prefer an appeal under Part III of this Chapter.] 

[(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.]