Income tax Appeal Filing Pakistan

Income tax Appeal Filing Pakistan

Income tax Appeal Filing Pakistan: Filing appeals before the Commissioner Inland Revenue (Appeals) & Income Tax Appellate Tribunal Inland Revenue (ATIR)

Filing appeals before the Commissioner Inland Revenue (Appeals) & Income Tax Appellate Tribunal Inland Revenue (ATIR) is a normal practice not everyone agrees on matters with one another. The main reasons of a taxpayer/ tax department file appeals against each other is the disagreement with the facts presented, assumptions made, decisions made, evidences presented, bad calculations, misunderstanding of law (on both parts) and so on.

Here we will tell you how to deal with income tax appeals, how to file income tax appeals before the Commissioner Inland Revenue (Appeals) & Income Tax Appellate Tribunal Inland Revenue (ATIR), how to prepare yourself for this and pretty much that you need to know as a taxpayer.

Income tax Appeal Filing Pakistan

• Circumstances giving rise to income tax appeals;
• Procedure for making an appeal before the Commissioner (Appeals);
• Procedure for making further appeals before High Court;
• Other related issues.

It is intended mainly for those who do not have professional advice in dealing with their tax affairs.

What is an appeal? | Income tax Appeal Filing Pakistan

Most appeals arise on account of disagreement between the taxpayer and the tax collectors (Inland Revenue department) regarding the quantification of the taxable income and tax liability thereon as well as levy of default surcharge, penalties, etc.

Usually an agreement is reached through correspondence or discussion and in most cases disputes are settled with the taxpayers at the DCIR’s / Commissioner’s level (herein of the referred to Deputy Commissioner IR, Assistant Commissioner IR, Inland Revenue Officer), saving time and trouble all around.

Income tax Appeal Filing Pakistan

However, there may be disagreement over facts, figures or interpretation of law between the taxpayer and the tax collectors (Inland Revenue department). To resolve such disagreements, law lays down the procedure, which gives the taxpayer right of appeal before the Commissioner (Appeals) and if still not satisfied, a further right of appeal before the Appellate Tribunal and Higher Courts of the country.

Circumstances giving rise to Appeals

Appeals can arise in connection with:

• A best judgment assessment (ex-parte assessment) based on any available information or material to the best of the DCIR / Commissioner’s judgment.
• An amendment made to the taxpayer’s self-assessment or a further amendment made to an already amended assessment, where the Commissioner considers that such assessment is erroneous and prejudicial to the interest of revenue.
• An amendment made to the taxpayer’s self assessment or a further amendment made to an already amended assessment, where the Commissioner, based on definite information acquired from an audit or otherwise, is satisfied that:
• Any income chargeable to tax has escaped assessment;
• Total income has been:
  • Under assessed;
  • Assessed at too low a rate;
  • Subjected to excessive relief; or
  • Subjected to excessive refund; and
• An amount relating to a “head of income” has been classified as an
  amount under another “head of income”;
• An order holding an individual personally liable to pay the amount of tax, which was required to be collected or deducted by him/her or having collected or deducted fails to pay the same as required by the law.
• An order declaring or treating a person as a representative of a non-resident person;
• An order refusing to rectify the mistake, either in full or in part;
• An order having the effect of enhancing the assessment or reducing a refund or otherwise increasing the tax liability;
• An order giving effect to any finding or directions in any order made by Commissioner (Appeals), Appellate Tribunal, High Court and Supreme Court; under section 124.
• Determination of amount of tax due on shipping and air transport income of non-
  resident;
• An order refusing or curtailing the amount of refund of tax paid in excess;
• An order imposing default surcharge;
• An order imposing penalty for:
• Failure to furnish a return or statement;
• Non-payment of tax;
• Concealment of income or furnishing Inaccurate particulars of income;
• Failure to maintain records;
• Non-compliance with notice;
• Making fake or misleading statement;
• Failure to give notice of discontinuation of business;
• Failure to give notice of appointment as liquidator;
• Obstruction in discharge of functions of the Taxation Officer / Commissioner

Income tax Appeal Filing Pakistan

Best judgment assessment is resorted to when the taxpayer:

• Fails to furnish the statement of income subject to separate charge/income subject to final tax/separate block of income, when required by a notice in writing from the Commissioner;
• Being a non-resident ship or aircraft owner or charterer fails to furnish a return to the Commissioner
• Fails to produce accounts, documents and records required to be maintained; or
• Fails to produce any other relevant document or evidence that may be required for making the assessment of income and determination of tax thereon;
• Fails to submit the wealth statement:
• Alongwith the return of income; or
• When required by a notice in writing from the Taxation Officer / Commissioner

Income tax Appeal Filing Pakistan

“Wealth statement” is the detail of an individual’s, his/her spouse’s, minor children’s and other dependents:

• Assets and liabilities on a specified date;
• Expenditures incurred during a specified period; and
• Assets transferred during the specified
  • The mandatory filling of Wealth Statement has been made effective from the Tax year 2013 onward.

An Assessment is erroneous and prejudicial to the interest of revenue when there has been an incorrect:

• Application of law;
• Payment of tax with the return of income;
• Claim for a tax reduction, credit, rebate or relief;
• Claim for exemption of any amount; or  Claim for a refund; or
  • Claim of loss.

“Heads of income” are salary, income from property, income from business, capital gains and income from other sources.

Income tax Appeal Filing Pakistan

Who can appeal?

Any person dissatisfied with any order passed by a Commissioner/Officer Inland Revenue has the right of appeal,

In case of an individual, the individual himself; in case of an association of persons, any partner or member of the association; and in case of a company the principal officer.

In case of a deceased individual, the legal representatives of the deceased; and in case of an individual under legal disability or a non-resident person, his/her/it’s “representative”, as
defined in section 172 of the Income Tax Ordinance, 2001.

Are there any prerequisites for making an appeal?

Yes, an appeal before the Commissioner (Appeals) against an assessment or amended assessment is neither entertained nor maintainable unless the tax due alongwith the return of income, on the basis of income declared, has been paid.

How to lodge an appeal? | Income tax Appeal Filing Pakistan

If a taxpayer disagrees with an assessment, an amended assessment or any other order, in part  or in full, under any one of the situations we have listed herein above under “circumstances giving rise to appeals” or the taxpayer believes that such assessment, amended assessment or the order is wrong otherwise, he/she can lodge an appeal before the Commissioner (Appeals):

• On the prescribed form of memorandum and grounds of appeal;
• Verified in the prescribed manner;
• Stating the grounds of appeal and claim / pray;
• Payment of prescribed fee; and
• Lodged within the time limit allowed for this purpose i-e 30 days of service of notice of demand and order to be appealed against.

A separate appeal for each tax year and each of the circumstances giving rise to an appeals, arising from a combined order for more than one tax year or more than one circumstances giving rise to an appeals, is required..

Income tax Appeal Filing Pakistan

Prescribed form of memorandum and grounds of appeal for making an appeal before the Commissioner (Appeals) is given at the end (Annex I). This form is to be completed in quadruplicate (two copies for the Commissioner (Appeals), one copy for the Taxation Officer / Commissioner and one copy for the appellants own records).

Grounds of appeal are the items of disagreements in an assessment, amended assessment or any other order along with the reasons for disagreement or why the appellant believes that the assessment, amended assessment or the order is wrong otherwise. These are commonly known as grounds of appeal.

The grounds of appeal should be:

• Written in Urdu or English;
• Precise and serially numbered;
• Stated separately and distinctly for each point of disagreement or issue intended to be raised in appeal; and
• Concise and without any argument, details or narrative.

Space for this purpose is provided in the prescribed form of appeal. Separate or additional sheet for stating the ground of appeals can be used.

It is advisable to start the grounds of appeal by challenging the legality and validity of the assessment, amended assessment or order in the following suggested manner:

1. “That the order of the Taxation Officer, is bad in law and contrary to the facts and circumstances of the case.”

Similarly, close the grounds of appeal with a request to add, amend or alter the grounds of appeal in the following suggested manner:

“That your appellant beg leave to add, amend or alter the above said grounds of appeal.”

Claim / pray is what finally is requested from the appellate authority to direct or order. Space for this purpose is provided in the prescribed form of appeal.

Examples of claim/pray are:

• “The order being illegal should be ”
• “The rejection of books of account should be declared invalid.”
• “Penalty imposed is excessive and should be reduced as warranted by the facts and circumstances of the case.”
• “Appropriate relief in the estimate of sales be allowed as warranted by the facts and circumstances of the case.”

Prescribed fee for an appeal to the Commissioner (Appeals) is as under:

• 1,000, where the appeal is against an assessment or an amended assessment
• In other cases:
• 1,000, where the appellant is a company; and
• 200, where the appellant is other than a company.

The above prescribed appeal fee is to be deposited in the State Bank of Pakistan or National Bank of Pakistan using the tax deposit slip form (Challan).

An appeal without payment of the prescribed appeal fee is neither entertained nor is maintainable.

Time limit for filling an appeal before the Commissioner (Appeals) is thirty (30) days from the date of receipt of:

• notice of demand relating to an assessment, an amended assessment or penalty; or
• any other order.

If an appeal is not filed, as explained above, the assessment, amended assessment, penalty or any other order is usually final and cannot be changed.

Always inscribe the date of receipt and the signatures and name of the recipient on the acknowledgment given in token of receiving any communication, notice, assessment, amended assessment, penalty or any other order from the income tax department as well as on your copy of such documents. It is very important as most of the time limitations like the period of thirty (30) days for filing an appeal commence from that date.

Documentation with appeal

At the time of filing of appeal before the Commissioner (Appeals) no documentation in support of the grounds of appeal or claim / pray is required to be submitted. Any such submitted/documentation can be made at the time of hearing of appeal (made available see under “What will happen at the hearing”).

However, the following documents are required to be submitted alongwith the two copies of the memorandum and grounds of appeal:

• Evidence of payment of appeal fee (in original);
• Notice of demand in original (where the appeal is against an assessment, an amended assessment or a penalty order); and
• Copy of assessment, amended assessment, penalty or any other order appealed against;
• Is someone else to be informed?

Yes, the concerned Commissioner is to be informed in advance that an appeal is being lodged before the Commissioner (Appeals) by forwarding a copy of the memorandum and grounds of appeal.

The copy of memorandum and grounds of appeal to the Commissioner should be forwarded by registered post acknowledgment due, courier service or delivered by hand.

Can the time for filing an appeal be extended?

Generally No, but the Commissioner (Appeals) is empowered to condone the delay in filing of appeal in exceptional cases after being satisfied that there was sufficient cause (valid/good reasons) which prevented the appellant from lodging the appeal within the time limit of thirty (30) days.

In such a situation the appellant should submit an application for condoning the delay in lodging the appeal to the Commissioner (Appeals) alongwith the appeal and requesting to entertain the appeal after the expiry of period of limitation of thirty (30) days. The application for condoning the delay, explaining the cause of delay, should be supported with an affidavit (a statement on oath), from the appellant.

The decision of the Commissioner (Appeals) on the application for condoning the delay in lodging an appeal is final.

How is an appeal settled

An appeal before the Commissioner (Appeals) is settled, after giving the appellant an opportunity to represent and explain the point of view on the issues of disagreement, in the manner explained below.

Notice of hearing

The Commissioner (Appeals) will fix the hearing of the appeal in the sequence of appeals received in his office. The appellant and the concerned Commissioner are normally informed seven (7) days before, of the place, day and time fixed for the hearing of the appeal. Also see under “Is there any time limit for the Commissioner (Appeals) to decide an appeal?”.

If the appellant neither attends nor informs the Commissioner (Appeals) of the reason for not attending, the Commissioner (Appeals) may decide the appeal to the best of his judgment in the absence of the appellant.

Can the day of hearing be changed or adjourned?

Yes, the Commissioner (Appeals) may at his discretion change the day or adjourn the hearing of the appeal from time to time either on his own or on the request of the appellant or the concerned Commissioner, keeping in view the facts, circumstances and merits of the case justifying the change of day or adjournment of hearing.

Do the appellants have to attend and represent personally?

Not necessarily. The appellant has an option either, to attend and represent the appeal personally or through an “authorized representative” instructed in writing by a properly executed authority to do so. Both, the appellant and the representative can also jointly attend and represent the appeal.

“Authorized representative” could be any of the following duly authorized in writing, by way of a letter of authority or a special power of attorney, etc., to represent the appellant:

• A relative.
• A current full time employee.
• An officer of a scheduled bank with which the appellant maintains a current account or have other regular dealings.
• Any legal practitioner entitled to practice in any Civil Court in Pakistan.
• Any accountant i.e., a chartered accountant or a cost and management accountant.
• Any income tax practitioner.

Can the Commissioner (appeals) stay the recovery of demand?

Where in a particular case, the Commissioner (Appeals) is of the opinion that the recovery of tax levied under the ordinance, shall cause un due hardship to the taxpayer, he after affording an opportunity of being heard to the Commissioner against whose order appeal has been made, may stay the recovery of such tax for a period not exceeding thirty days in aggregate.

Income tax Appeal Filing Pakistan

Can the grounds of appeal be changed?

Yes, the grounds of appeal can be changed with the permission of the Commissioner (Appeals) where such omission was not willful or unreasonable before the hearing of the appeal takes place. This includes adding an entirely new ground of appeal, amending, or altering the existing grounds of appeal.

How to make the submissions (verbally or in writing)?

There is no hard and fast rule for the mode of making the submissions (arguments / point of view / explanations etc.) before the Commissioner (Appeals). Generally, all submissions before the Commissioner (Appeals) are made verbally.

However, the mode of making the submissions is much dependent upon the facts and circumstances of the appeal; and the appellants, authorized representative or the Commissioner (Appeals) convenience.

It is advisable to give written arguments particularly in appeals involving many or complex issues so that nothing is left un-attended.

Can any further documents, material or evidence be submitted in support of the appeal?

As a general rule the Commissioner (Appeals) cannot admit any further documents, material or evidence in support of the appeal that had not earlier produced or submitted during the course of audit or proceedings of amended assessment etc. before the Commissioner.

However in exceptional circumstances, the Commissioner (Appeals) on being satisfied that the appellant was prevented by sufficient cause from producing or submitting such documents, materials or evidence before the Taxation Officer / Commissioner, can admit the same.

What will happen at the hearing? | Income tax Appeal Filing Pakistan

The appellant or the appellant’s representative or both are given a personal hearing by the Commissioner (Appeals) to represent and argue the appeal. The Commissioner may also attend personally to defend the assessment or order.

The burden of proof rests on the appellant to explain the case and prove that either the facts of the case are not properly appreciated or the law is incorrectly applied by the Commissioner.

The appellant has to state and explain quite clearly:

• What is already settled;
• What is disputed;
• What evidence is being produced;
• What are the appellants contentions on the points of disagreement or disputes; and
• How the assessment or order appealed against is wrong.

The appellant must bring all the documents, materials and evidence that are relied upon in support of the appeal and are intended to be produced before the Commissioner (Appeals).

The Commissioner (Appeals) is empowered to call for any further details, information, explanations and material in respect of matters arising in the appeal. He is also empowered to order for conducting further enquiries by the Commissioner before deciding the appeal.

The Commissioner (Appeals) after considering the appellants arguments, counter arguments by the Commissioner, details, information, explanations and material obtained during the course of hearing of appeal, results of the enquiries ordered by him, if any, and consulting the assessment records, decides the issues of disagreement and dispute raised in the appeal.

The decision arrived at by the Commissioner (Appeals) and the grounds on which his decision is based are communicated to appellant and the Commissioner later by an order in writing.

Can the Commissioner (Appeals) remand the issue(s) under appeal for re-adjudication?

As per section 129 the Commissioner may make an order, modified or annul an assessment or decide the appeal in the manner he thinks fit.

Can the Commissioner (Appeals) enhance the assessment or tax liability?

Yes, the Commissioner (Appeals) is empowered to enhance the assessment or the tax liability arising out of any issue coming to his knowledge justifying an upward revision, during the course of hearing of appeal, whether connected or related with the appeal in hand or not. This power can be exercised after giving a reasonable opportunity to the appellant, to show cause against the proposed action.

Is there any time limit for the Commissioner (Appeals) to decide an appeal?

Yes, the Commissioner (Appeals) is required to decide an appeal lodged before him within one hundred and twenty days from the date of filing of appeal or within an extended period of sixty days, for reasons to be recorded in writing by the Commissioner (Appeals), provided that adjournment period at the request of appellant or postponement period due to stay, appeal, remand or ADR proceedings would be excluded while computing the aforementioned period.

In order to invoke this time limit the appellant is required to personally serve a notice on the Commissioner (Appeals) thirty days before the expiry of such time limit for deciding an appeal.

Can the matter be taken further if the parties to appeal disagree with the decision of the Commissioner (Appeals)

Yes, if the appellant disagrees partly or fully with the decision of the Commissioner (Appeals) or still believes that the assessment or amended assessment or the order as modified by the Commissioner (Appeals) is wrong otherwise, the appellant has a right to take the matter to the next appellate forum by way of a further appeal before the Appellate Tribunal.

The Commissioner has also a similar right of appeal before the Appellate Tribunal against the order of the Commissioner (Appeals), where he (the Commissioner) disagrees partly or fully with the decision of the Commissioner (Appeals).

Appellate Tribunal is an independent authority directly under the Ministry of Law, Justice and Human Rights and is the last and final fact-finding authority, i.e., the income tax proceedings end after the decision of the Appellate Tribunal. The only exception, to this finality, is a Reference to the High Court on law point (issues involving interpretation of law) and then to the Supreme Court of Pakistan, if warranted.

Appeal to Appellate Tribunal | Income tax Appeal Filing Pakistan

An appeal to the Appellate Tribunal is also required to be lodged:

• On the prescribed form of memorandum and grounds of appeal (Annex II);
• Stating the grounds of appeal and claim / pray as explained herein above under appeal to the Commissioner (Appeals);
• Payment of prescribed fee; and
• Lodged within the time limit allowed for this purpose.

Complete the prescribed form of memorandum and grounds of appeal in quintuplicate (five copies), three copies for the Appellate Tribunal, one copy for the Commissioner and one copy for the appellant’s own records.

Prescribed fee, for an appeal to Appellate Tribunal is Rs. 2,000. An appeal without payment of the prescribed appeal fee is neither acceptable nor maintainable.

Time limit for filling an appeal before the Appellate Tribunal is sixty (60) days from the date of receipt of decision of the Commissioner (Appeals).

If an appeal is not filed, as explained above, the assessment, amended assessment, penalty or any other order as modified by the Commissioner (Appeals) is usually final and cannot be changed.

Documents/certificates: required to be submitted alongwith the appeal (three copies of the memorandum and grounds of appeal) to the Appellate Tribunal are as under:

• Two copies of the decision of the Commissioner (Appeals), one of which should be an attested copy. An “attested copy” is the one you normally receive from the Commissioner or the Commissioner (Appeals).
• Two copies of the assessment, amended assessment or other order, as the case may
  be, one of which should be an attested copy;
• Certificate that a copy of the memorandum and grounds of appeal has been forwarded to the Commissioner by Registered Acknowledgment Due Post (Annex III).

Income tax Appeal Filing Pakistan

As a standard practice, the submissions (arguments / point of view / explanations etc.) before the Appellate Tribunal are made verbally. It is only in some exceptional circumstances that the tribunal may allow or direct to substantiate the verbal submissions in writing. However, comparative statements of facts and figures are normally entertained.

The appellant or the appellant’s representative or both are given a personal hearing by the tribunal to represent and argue the appeal. The Commissioner is represented by a “Departmental Representative” to defend the assessment, amended assessment or other order appealed against and to defend or contest the decision of the Commissioner (Appeals), as the case may be. If necessary, the department is also represented by a legal advisor.

Income tax Appeal Filing Pakistan

The Appellate Tribunal has restricted powers to enhance the assessment or the tax liability as compared to the Commissioner (Appeals). The Tribunal can invoke this power only in respect of an issue coming to its knowledge that is connected or related to the grounds of appeal. This power can be exercised after giving a reasonable opportunity to show cause against the proposed action.

Other applicable principles, conditions and requirements in respect of:

• Sending the copy of memorandum and grounds of appeal to the Commissioner;
• Extension in time for filing an appeal;
• Notice of hearing of appeal;
• Change of day of hearing or adjournment;  Attendance to the hearing of appeal;
• Addition, amendment or alteration of grounds of appeal;
• Proceedings of appeal;
• Communication of the decision;

are same as in case of an appeal before the Commissioner (Appeals)

How long does it take for the appellate tribunal to decide the appeal?

Income tax Appeal Filing Pakistan

The Appellate Tribunal is obliged to decide the appeal within six months of its filing.

Can the appeal be withdrawn?

Yes, the appellant can withdraw the appeal with the permission of the Commissioner (Appeals) or the Appellate Tribunal, as the case may be, by making a request in writing.

The permission of Commissioner (Appeals) or the Appellate Tribunal is necessary to avoid the withdrawal of appeals where the Commissioner (Appeals) or the Appellate Tribunal has invoked their powers of enhancement.

Is balance tax payable in the meantime?

An assessment, amended assessment or other order under the Income Tax Ordinance, 2001 and the related tax liability remains enforceable even if an appeal against such an order has been preferred before the Commissioner (Appeals) or the Appellate Tribunal.

Under the Income Tax Ordinance, 2001, invoking of right of an appeal before the Commissioner (Appeals) or the Appellate Tribunal does not mean that the assessment, amended assessment or other order appealed against has became inoperative or the tax demand raised is not payable till the decision of appeal.

However, the Appellate Tribunal is empowered to grant stay against recovery of the tax, initially for 180 days.

Thus, the recovery of the tax liability can always be enforced unless stayed by the Appellate Tribunal. It is advisable to properly evaluate the undisputed and disputed portion of the tax liability and the undisputed portion of the tax liability discharged / paid as early as possible to avoid the levy of default surcharge

Is default surcharge (interest) payable? | Income tax Appeal Filing Pakistan

Yes, default surcharge (interest) at the rate of “KIBOR” plus 3% per quarter is charged on all delayed payments of the tax from the date originally due to the date of actual payment irrespective of the fact that an appeal before the Commissioner (Appeals) or the Appellate Tribunal has been made. Even under exceptional circumstances, where the recovery of tax is stayed or allowed to pay in installments, the charge of default surcharge is mandatory.

However, when the tax liability stands modified as a result of decision in appeal or for any other reason the amount of default surcharge also stands automatically modified and re-calculated on the revised tax liability but from the date it was originally due to the date it is actually paid.

Within the 90 days of the communication of the order of Appellate Tribunal, the aggrieved party can file a reference before the High Court of competent jurisdiction on a point of law.

Prescribed form of appeal to the Commissioner (Appeals)

FBR has prescribed a revised procedure for filing of appeals by taxpayers to the Commissioner (Appeals) under which stay applications shall be disposed of by the Commissioner (Appeals) within seven working days of fixation. In this regard, the FBR has issued SRO 162(1)/2018 here on Friday to issue draft of certain further amendments to the Income Tax Rules, 2002.

“76.  Prescribed form of appeal to the Commissioner (Appeals).- An appeal under section  127 shall be in the following form and verified in the manner indicated therein, namely:-

FORM OF APPEAL

APPEAL NO.____________

APPEAL DATE__________

(For office use only)

To

THE COMMISSIONER

(APPEALS) ZONE________

 

Date of payment of appeal fee

Date of payment of

Amount of appeal fee paid

 

Amount of tax demand based on return of income.

Amount of tax levied additionally whether requirement of tax payment for filing of appeal met or not?

Yes No

 

National Tax Number of Appellant

 

or CNIC

 

Tax Year

 

Zone____________________           Jurisdiction _____________________

 

Name of

Appellant

 

Individual

AOP

Company

Appellants

Status”

(Pl. encircle the appropriate box)

 

Address of Appellant

 

 

Name of Authorized

Representative (if any)

 

CA

C&MA

ADV

ITP

AR

Status of Representative

(Pl. encircle the appropriate box)

 

Address to which

the Notice may

be sent

 

 

Name of the Commissioner (who passed the order)

 

CIT Code

ASSESSED

INCOME DECLARED

Signature of the official _____________________

Who received the appeal _____________________

Name ____________________________________

(in capital letter)

Designation _______________________________

 

TAX ASSESSED

           

(a) Income tax											General Guidelines.
(b) Default Surcharge											1. Indicate the section and sub-section of the Income Tax Ordinance under which appeal filed. 2. Where payment made on more than one date please give details on a separate sheet.   3. AOP: Association of Persons 4. CMA: Cost & Management Accountant. 5. AR: Authorized Representative
(c) Penalty
(d) Others
(e) Total
(f) Undisputed liability. This shall not be less than the tax due on the basis of return.
(g) Tax Demand [“u/s 137 (2)”]

 

N.B.    (i) The appeal should be filed in duplicate and should be accompanied with

• the order appealed against;
• notice of demand;
• proof of payment of appeal fee;
• a certificate showing the date of service of notice of demand or the impugned order to the appellant; and
• a certificate showing the date of communication of the memorandum of appeal and grounds of appeal to the respondent department alongwith evidence of service.

 

BRIEF HISTORY AND FACTS OF THE CASE

____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

 

GROUNDS OF APPEAL

(Attach separate sheets, if required)

1._________________________________________________________________________

2._________________________________________________________________________

3._________________________________________________________________________

4._________________________________________________________________________

 

BRIEF CLAIM IN APPEAL/ PRAYER

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

 

VERIFICATION

 

2. I,_____________________ S/o_____________________ the proprietor/partner/managing director/member of M/s._______________ the appellant, do hereby declare that whatever is stated above is true to the best of my knowledge and belief.
3. I am competent to file the appeal in my capacity as _______________________.
4. I further certify that a true copy of this form of appeal has been sent by Registered Post/ AD/ Courier service, or delivered personally to the concerned Office of the Commissioner Inland Revenue, Zone­­­­ __________________ on _________ (date).

Evidence of service by any of the following modes attached:-

(Please tick the relevant box)

• Receipt of registered post

• Receipt of courier service

• Receipt of personal service

 

Signature of Appellant________________________

Name (in capital letters)________________________

CNIC Number of person signing the appeal____________________

The form of appeal and verification form appended thereto shall be signed:-

(a) in case of an individual by the individual himself

(b) in case of a company by the principal officer.

(c) In case of AOP by member/partner.­___________________________________________________________________________

This portion is for official use

Appeal received by transfer                Date appeal received                           In ward register No.

From Zone/Range                                           by transfer

 

 

_____________________

Appeal transferred to                          Date of appeal                                       Outward register No.

Zone/Range                                         transferred out________________       ________________

UDC/LDC/ Officer of Appeal Section _____________ CIR(Appeal) ______________________

       (Initial)                                         (Initial)

 

APPEAL ACKNOWLEDGEMENT RECEIPT

Appeal Zone/ __________                                         City_______________________

 

Appeal No. _____________

National Tax No/CNIC.

Appellant Name_____________________

Signature of Appellant            Date of receipt of                   Signature, and name of receiving

Appeal                                     Official

Designation_________________ __________________        _______________

76A. Date of presentation and filing of Appeals.— Any official authorized by the Commissioner (Appeals) in this behalf shall endorse on the front page of every memorandum of Appeal the date on which it is presented, sign the endorsement and the appeal so endorsed shall be entered in a register as provided under rule 76K.

76B. Documents to accompany Appeal.— (1) Every memorandum of appeal shall be accompanied with the following documents along with checklist specifying the documents attached with the memorandum in duplicate (one of which shall be a certified copy), namely:-

(a) the order appealed against;

(c) proof of payment of appeal fee;(b) notice of demand;

(d) a certificate showing the date of service of notice of demand or the impugned order to the appellant; and

The appellant shall annex an index on the face of memorandum of appeal, showing the documents filed under this rule along with paging in paper book form in duplicate.(e) a certificate showing the date of communication of the memorandum of appeal      and grounds of appeal to the respondent department.

76C.    Intimation of filing of appeal to the respondent.— The appellant shall before filing of appeal send a copy of the memorandum of appeal and grounds of appeal to the respondent and a certificate to this effect shall be appended with the appeal.

76D.    Filing of affidavit regarding contrary facts.—Where a fact, which cannot be borne out by or is contrary to the record, is alleged, it shall be stated clearly and concisely by a duly sworn affidavit and shall have to be filed with the memorandum of appeal.

76E.    Defective appeals etc.— (1) Where a memorandum of appeal is not filed in the manner specified in these rules, the official authorized under rule 76A, after examination at the time of filing may, within three working days, require the appellant or his authorized representative, if any, to bring the memorandum of appeal in conformity with the Rules, within the time limitation as specified in sub-section (5) of section 127 of the Ordinance subject to just exceptions under sub-section (6) of the aforesaid section and the appeal so received shall not be deemed to have been filed unless the provisions of these Rules have been fully complied with.

• Where the appellant or his authorized representative does not meet the requirement under sub-rule (1), the authorized official shall place the matter before the Commissioner (Appeals) for appropriate orders.

76F.     Power of attorney etc., by authorized representative.— Where an authorized representative has been appointed or declared as defined in section 172 of Ordinance, such representative shall annex with the memorandum, the document showing his authority and his acceptance thereof, which shall be signed and dated by the representative and shall also specify his capacity in which he is acting as such.

76G.    Procedure for filing and disposal of stay application.— (1) On receipt of stay application the official authorized in this behalf shall fix the application for hearing in the following manner, namely:-

• For applications received before 01:00PM on a working day, hearing shall be fixed on the next working day; and
• For applications received after 01:00PM on a working day, hearing shall be fixed on the day after the next working day.

(2)  Stay applications shall be disposed by the Commissioner (Appeals) within seven working days of fixation.

76H.    Date and place of hearing of appeal and stay applications.— (1) The Commissioner (Appeals) shall issue and properly serve notices to both the parties to the appeal informing them about the date and place of hearing of appeal or the stay application as the case may be.

(2) The Commissioner (Appeals) may, where deemed necessary, require the respondent department to submit para-wise comments in response to the appellant’s written submissions, if any, on or before the due date of hearing.

76I.      Hearing of Appeal or stay application.— (1) On the day fixed for hearing or any other day to which the hearing is adjourned the appellant shall be heard and the Commissioner (Appeals) shall then hear the respondent against the appeal or stay application and in that case the appellant shall have a right to reply.

(2)  The Commissioner (Appeals) may from time to time adjourn the hearing of the appeal.

76J.     Notice to be issued to both parties under sub-section (2) of section 129.— The Commissioner (Appeals) shall issue notices to both parties for providing them a reasonable opportunity to present their stance in case of increase in the amount of any assessment order or decrease in the amount of any refund.

76K.    Maintenance and Preservation of registers.— (1) The following registers shall be maintained according to the format as mentioned below;—

S.No.	Name of Register
(1)	(2)
1.	Appeals Register
2.	Stay Application Register
3.	Early hearing Register
4.	Register for Compliance of Court

• The registers of the Commissioner (Appeals) specified in sub-rule (1) shall be preserved forever.

 FORMAT OF REGISTERS

APPEAL REGISTER

S#	Appeal No.	Date of institutions of Appeal	Name / address  taxpayer	NTN / CNIC	Tax year	Zone / Field formation	Revenue involved	Date of appellate order	Status (confirmed /modified/annulled/enhanced/other
1	2	3	4	5	6	7	8	9	10

 

STAY APPLICATION REGISTER

S.#.	Appeal No.	Date of institution of Appeal	Name, NTN/ CNIC	Date of receipt	Tax year	Zone/Field formation	Revenue involved	Stay granted for number of days/not granted	Date of order
1	2	3	4	5	6	7	8	9	10

 

EARLY HEARING REGISTER

S.#	Appeal No.	Date of institution of Appeal	Name, NTN/ CNIC	Tax year	Request date	Request made by (Taxpayer/ Dept)	Zone/Field formation	Revenue involved	Date of Appellate order
1	2	3	4	5	6	7	8	9	10

COMPLIANCE REGISTER OF COURT DIRECTIONS/ORDERS

S.#	Appeal No	Name, NTN/CNIC	Date of Receipt of Court Order	Direction/Order of the Court	Last Date for Disposal	Date of Appellate order
1	2	3	5	6	7	8

76L. Reports.— (1) Commissioner Inland Revenue (Appeals) shall submit a monthly performance report as set out below by the 5^th of every month:

MPR (APPEALS) FOR THE MONTH OF ______________ 201  /

(CIR APPEALS)

Particulars of reporting officer:

Code:	Name of CIR	Telephone / Mobile No.	E-mail Address	City

 

Appeals for Disposal

Opening Balance	Transfer			Remand Back	Fresh Filing	Revenue involved (M)	Available for Disposal
	In	Out	Net

 

Disposal		Revenue Involved		Balance Pendency		Revenue Involved (M)
During the month	Upto the Month	During the month (M)	Upto the Month (M)	During the month	Upto the Month	During the month (M)	Upto the Month (M)

 

Withdrawn		Revenue		Stay of Proceedings as per ADRC		Revenue (M)
During the month	Up to the month	During the month	Up to the month	During the month	Up to the month	During the month	Up to the month

Aging Composition

3 Months Old		4 to 6 Months Old		7 to 12 Months Old		More than year Old
No. of Cases	Revenue Involved (M)	No. of Cases	Revenue Involved (M)	No. of Cases	Revenue Involved (M)	No. of Cases	Revenue Involved (M)

Analysis of Appeals decided.

	No. of Appeals	Confirmed	Modified	Annulled	Total	Others
For the Month
Up to the Month

Disposal of Stay Applications

Opening Balance of Stay Applications	New stay application filed in the month	No. of applications decided during month	Stay application pending for more than 10 days	Closing balance (end of month)

 

 

Disposal of cases on directions of Superior Courts.

Opening balance of cases remanded by Superior Courts	New cases referred / remanded during the month	Cases decided during the month	Closing Balance

(2) Commissioner Inland Revenue (Appeals) shall submit the stay applications disposal Report as set out below by the 5^th and 20^th day of every month:-

 STAY APPLICATIONS DISPOSAL REPORT

FOR THE MONTH OF____________, 201 

S.#	Appeal No.	Name of Taxpayer	NTN/ CNIC	Date of Receipt of  Application	Date of Fixation	Date of Disposal
1	2	3	4	5	6	7

76M. Arrangement and preservation of record.— (1) The record of appeals, and other applications shall consist of the following two parts, namely:-

Part-A

• Folder containing the particulars of appeals, applications and brief abstract of the impugned orders of the Commissioner;
• order sheet or chronological abstract of orders;
• original copy of memorandum of appeal;
• original copies of grounds of Appeal;
• affidavits;
• judgment or any other final order against which appeal is preferred; and
• judgments and orders of High Courts and Supreme Court.
• The document specified in sub-rule (1) shall form “Part-A” of the record unless otherwise directed by the Board, all other documents shall form “Part-B” of the record.

(3) The documents forming part of appeals, and other applications specified in this rule shall be preserved for a period specified below, which shall be reckoned from the date of final order.

Explanation: The expression documents used in this rule includes all forms of electronic record.

(4) The documents as mentioned above shall be preserved as under,─

• documents to be preserved permanently,─
  • Part “A” of the appeals, and applications; and
  • Judgments of the High Court, Supreme Court in constitutional petitions;
• documents to be preserved for twelve years and Part “B” of the appeals record and any other documents as directed by the Board; and
• destruction of Record, after the prescribed period as provided in clause (b), shall be in the manner as directed by the Board.

76N.    Manner of destruction of record.— (1) After the expiry of the period of preservation specified in rule 76M above, the record of the appeals, and other applications shall be destroyed in supervision of  Commissioner (Appeals).

• All court fee stamps, affixed to documents which are to be destroyed, shall be removed there from and burnt.
• The record shall be destroyed by tearing or otherwise so that no document may be used again.
• After destruction of the record, the Commissioner (Appeals) under whose supervision the record was destroyed shall certify that the destruction has been rendered such record of no use.
• The fact of destruction of appeals and other applications shall be recorded under the signatures of Commissioner (Appeals) immediately after their destruction in the register in which such appeals, applications are entered and also in the index prefixed to the record.

76O.       Seal of the Commissioner (Appeals).— (1) There shall be a seal of the Commissioner (Appeals) on which shall be inscribed his name and insignia.

• The seal shall remain in the custody of the official as the Commissioner (Appeals) may direct and shall be affixed on every order passed by the Commissioner (Appeals).”.

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