APPEALS

Whenever a dispute or difference of opinion is brought before the Appellate Authorities for
decision, it is known as “appeal”.
If you think that the assessments order you received by the commissioner is faulty and you
don’t agree with that, then you can file appeal to the seniors to revise it. It refers to solve the
disagreement between the taxpayer and the income tax department.

Stages of Appeal:

1. APPEAL TO THE COMMISSIONER (APPEALS):

“Commissioner (Appeals)” means a person appointed to be a Commissioner Inland Revenue

(Appeals) under section 208 of the Income Tax Ordinance, 2001. When you get the assessment
order from the commissioner and you think that the order isn’t correct, then you’ll have to write
an application to the Commissioner appeal, within 30 days of getting the order from the
commissioner. The appeal charges against assessment are Rs.1000, fee of Rs.1000 in case of
company and Rs.200 in other cases shall be payable. You have to attach documents, orders, and
your queries with the grounds of appeals with application or challan. Commissioner appeal have
120 days to take decision, he can take 60 days extension with solid reason for the extension.
Commissioner appeal takes decision after discussions with both the parties i.e. tax payer and the
commissioner.

2. APPEAL TO INCOME TAX APPELLATE TRIBUNAL:

“Appellate Tribunal” is the highest appellate authority within the framework of the Income Tax
Ordinance, 2001. The main function of ITAT is to hear the appeals against the decisions given by
the Commissioner (Appeals) and to decide the matter under the provisions of the law.

You can appeal against the order/decision of the commissioner appeal to the Income Tax
Appellate Tribunal (ITAT) within 60 days of commissioner appeals orders. Commissioner also has
the authority to challenge the decision. If tax payer goes to ITAT, he has to pay the fees but if
commissioner goes to ITAT for challenging the decision, he doesn’t have to pay the fee. The
applicant has to provide the ground of appeal and ITAT takes decision within 180 days. Income
Tax Appellate Tribunal is the final fact finding authority.

Members of the Appellate Tribunal:

Appellate tribunal shall have two types of members:
 i. Judicial Members:

Any of the following persons may be appointed as judicial member:

 High court judge

 District court judge
 Lawyer in high court for 10 years
ii. Accountant Member:

Any of the following persons may be appointed as judicial member:

 CA with ten years practice

 ICMA with 10 years practice
 Regional commissioner

Recovery of tax:
Even if you appeal, the recovery of tax is inevitable with respect to commissioner’s orders. But
you can delay it if:

 You pay 10% of the amount of default tax

 Get stay orders from ITAT (ITAT give stay order of 6 months, but after this period
commissioner can take legal actions).

Status of the Appellate Tribunal’s Decision:

If the matter before the ITAT relates to the Question of law, then the case may be referred to the
High court. But if the matter related to Question of tax, then the ITAT decision would be final and
could not be challenged further.

3. APPEAL TO HIGH COURT:

After the tribunal, the tax payer or tax department may file a reference application in order to get the
advisory of high court on any law. High court will take decision within 6 months. High court can also
grant a stay order for 6 months till the time the court takes decision. In High court decision is
taken by two bench i.e. two judges. And whoever will do appeal among both the parties would
have to pay the High court fees.

Section 133:

 The taxpayer or the commissioner who does not agree upon the order of the tribunal
can appeal into the high court within 90 days after receiving the order from tribunal.
 The application should be with a statement of case to the high court.

 If the high court is satisfied that there is some misleading information in the tribunal
order, then the appeal would be processed otherwise rejected.
 The high court upon hearing the appeal, pass judgement on the points which needs to
be modified again. The court sends judgement under seal of the court to tribunal.
  If the tax is refundable according to the new high court order, the commissioner must
adjust or return it within the 30 days of judgement.

4. APPEAL TO SUPREME COURT:

Supreme Court is the final stage for the submission of appeal of dispute parties against any order
of the High court. In any case, High court certifies to be fit one for appeal to Supreme Court.

5. ALTERNATE DISPUTE RESOLUTION:

If both the parties want to settle the matter out of the court then they have to write an
application to the board to form an Alternative Dispute Resolution Committee. They make a
special committee within 60 days of application. It is mandatory for a person to submit case
withdrawal from ITAT or High Court, and submit the letter in the committee within 75 days;
otherwise the committee would dissolve and the case will go back to where it first came from i.e.
ITAT or High court.

Members of board:

 Represent department: He should not be less than commissioner’s rank

 Represent Tax payer: Chamber of commerce or , CA with10years of

experience
 Judiciary: Retired judge of high court or district court

Hearing:
After the letter received order must be passed within 120 days for both parties. If the
commissioner is right, then court ask for recovery. But if the commissioner is wrong he has to
refund. If ADRC does not give any decision within 120 days the case is dissolved and sent back to
the tribunal or high court. Burden of proof is on the tax payer.

The committee takes decision on the agreement of majority number of members. The decision
this committee takes, can’t be challenged; it’s a final decision and everyone have to accept it.