Appeal to the Appellate Tribunal and Reference to the Honourable High Court
Appeal to the Appellate Tribunal and Reference to the Honourable High Court: Finance Act, 2024 — Explanation regarding Important Amendments made in the Income Tax Ordinance, 2001
Important amendments made in Income Tax Ordinance, 2001 (“the Ordinance”) through Finance Act, 2024 are explained in the subsequent paragraphs.
Appeal to the Appellate Tribunal Section 131 and Reference to the Honourable High Court Section 133
After introduction of section 126A and substitution of section 133 through the Tax Laws (Amendment) Act, 2024, appeals against those orders could be filed with the Commissioner (Appeals) where the value of assessment or as the case may be, refund of tax does not exceed twenty million rupees. Sub-section (1) of section 133 stipulated that within thirty days of the communication of the order of the Appellate Tribunal or, as the case may be, the Commissioner (Appeals), the aggrieved person or the Commissioner may file a reference before the High Court. Hence, appeal against the order of the Commissioner (Appeal) would lie before the High Court. However, the existence of the words, “Commissioner (Appeals)” in sub-section (1) of section 131, indicated that appeal against the order of the Commissioner (Appeals) could also lie before the Appellate Tribunal.
In order to remove this anomaly, the expression “or Commissioner (Appeals)” has been omitted from sub-section (1) of section 131 which made it clear that all appeals decided by the Commissioner (Appeals) or the Appellate Tribunal shall lie before the High Court. There cannot be a situation where second appeal against the decision of the Commissioner (Appeals) is filed before the Appellate Tribunal.
Regarding cases which were pending with the Commissioner (Appeals) at the time of commencement of the Tax Laws (Amendment) Act, 2024 and which were subsequently decided by the Commissioner (Appeals), the issue requiring attention was what would be the appellate authority where the impugned order of the Commissioner (Appeals) is contested in case where such order was communicated after the date of commencement of the Tax Laws (Amendment) Act, 2024. In this regard, an explanation has been added in sub-section (1) of section 133 to clarify that references against order of the Commissioner (Appeals) communicated after the commencement of the Tax Laws (Amendment) Act, 2024, will lie before the High Court, even if proceedings were pending before the Commissioner (Appeals) prior to the commencement of the Tax Laws (Amendment) Act, 2024.
A new sub-section (18) has been inserted M section 239 which states that for decisions, received prior to the commencement of the Tax Laws (Amendment) Act, 2024, the period of limitation for filing of appeals before the Appellate Tribunal or the High Court shall be the same as it existed prior to the commencement of the said Act.
Read full text of Explanation of Finance Act, 2024 Amendments made in the Income Tax Ordinance, 2001 for more updates on taxes from FBR click here.
