Pecuniary Jurisdiction Section 126A
Pecuniary Jurisdiction Section 126A: 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.
Pecuniary Jurisdiction Section 126A
As per section 126A, an appeal to the Commissioner (Appeals) shall lie where the value of assessment of tax, or refund of tax, as the case may be, does not exceed twenty million rupees and an appeal to the Appellate Tribunal Inland Revenue shall lie where the value of assessment of tax, or refund of tax, as the case may be, exceeds twenty million rupees.
An explanation has been added to sub-section (1) of section 126A in order to explain the term “value of assessment of tax”. The term “value of assessment of tax” refers to the net increase in tax liability resulting. from the order being challenged, while “value of refund” denotes the net reduction in refund due to the order being contested.
Further, sub-section (1) of section 126A has been made non-obstante with reference to other provisions of this Ordinance so its provisions will prevail in case of anything to the contrary in any other provision of the Ordinance. Subsection (1) of section 127 has been made subservient to section 126A which clarifies the existing position of law that no order having the value of assessment or net reduction in refund exceeding twenty million shall lie before the Commissioner (Appeals) and that such first appeals shall lie before the Appellate Tribunal.
Moreover, amendments in sub-sections (4) and (5) of section 126A have been made to the effect that all cases pending before the Commissioner (Appeals) having value of assessment of tax or, as the case may be, refund of tax exceeding twenty million rupees, shall on or before the 31St day of December, 2024 stand transferred to the Appellate Tribunal Inland Revenue.
All cases transferred to the Appellate Tribunal shall be decided within the period provided for under section 132 which period shall commence from the date of transfer of such cases from the Commissioner (Appeals).
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.
