1/9/2022

Income tax authorities [Sec. 207]

There shall be following Income Tax authorities:-
(a) Federal Board of Revenue (Board);
(b) Chief Commissioner Inland Revenue;
(c) Commissioner Inland Revenue;
(d) Commissioner Inland Revenue (Appeals);
(e) Officer of Inland Revenue
(i) Additional Commissioner Inland Revenue;
(ii) Deputy Commissioner Inland Revenue;
(iii) Assistant Commissioner Inland Revenue;

1
 1/9/2022

Who is required to file a return of income?

The following persons are required to furnish a return of income for a tax
year:
1. every company;
2. every person (other than a company) whose taxable income for the
year exceeds Rs. 400,000;
3. non-profit organization;
4. every person whose income for the year is subject to final taxation.
5. persons or classes of persons notified by the Board with the approval
of the Minister incharge.

(b) A person who,-

(i) has been charged to tax in any of the 2 preceding tax years;
(ii) claims a loss carried forward;
(iii) owns immovable property with a land area of 500 square yards or more or -
owns any flat located in:
▪ areas falling in the municipal limits; or
▪ areas in a Cantonment; or
▪ the Islamabad Capital Territory;
IV. owns immoveable property in rating area with a land area of 500 square yards
or more;
V. owns a flat in a rating area having covered area of 2,000 square feet or more;
VI. owns a motor vehicle having engine capacity above 1,000 CC;
VII. has obtained National Tax Number: or
VIII. holds commercial or industrial connection of electricity if annual bill exceeds
Rs.500,000.

2
 1/9/2022

In addition to the above, return is also required to be filed by the person

who,-
(i) has been charged to tax in respect of any of the two preceding tax
years;
(ii) claims a loss carried forward for a tax year;
(iii) owns immovable property with a land area of 500 square yards or more
or owns any flat located in areas falling within the municipal limits
existing immediately before the commencement of local government
laws in the provinces; or areas in a cantonment; or the Islamabad
capital territory.
(iv) owns immoveable property with a land area of five hundred square
yards or more located in a rating area;
(v) owns a flat having covered area of two thousand square feet or more
located in a rating area;

VI. owns a motor vehicle having engine capacity above 1000 CC;
VII. has obtained National Tax Number or
VIII.is the holder of commercial or industrial connection of electricity where
the amount of annual bill exceeds Rs.500,000.
IX. Is a resident person registered with any chamber of commerce and
industry or any trade or business association or any market committee
or any professional body including Pakistan Engineering Council, Pakistan
Medical and Dental Council, Pakistan Bar Council or any Provincial Bar
Council, Institute of Chartered Accountants of Pakistan or Institute of
Cost and Management Accountants of Pakistan.
X. is a resident person being an individual required to file foreign income
and assets statement under section 116A; or
XI. every individual whose income under the heading ‘Income from
business’ exceeds Rs.300,000 but does not exceed Rs. 400,000 is also
required to file tax return.

3
 1/9/2022

Persons not liable to file tax return Under section 115.

The following persons are granted immunity from filing of tax return:
Following persons:
1. a widow;
2. an orphan below the age of twenty-five years;
3. a disabled person; or
4. a non-resident person.
Shall not be required to furnish a return of income for a tax year solely by reason of:
1. owning immovable property with a land area of 500 square yards or more or any flat
located in areas falling within the municipal limits, existing immediately before the
commencement of local government laws in the provinces; or areas in a cantonment;
or the Islamabad capital territory.
2. owns immoveable property with a land area of five hundred square yards or more
located in a rating area;
3. owns a flat having covered area of two thousand square feet or more located in a
rating area;
4. owns a motor vehicle having engine capacity above 1000 CC;

Can Commissioner demand a return of income from a person for a period

of less than 12 months?
The Commissioner may, by notice in writing, require a person, or a person’s
representative, as the case may be, to furnish a return of income by the
date specified in the notice for a period of less than twelve months, where:
1. the person has died;
2. the person has become bankrupt or gone into liquidation;
3. the person is about to leave Pakistan permanently;
4. the Commissioner otherwise considers it appropriate to require such a
return to be furnished.

4
 1/9/2022

Can Commissioner demand a return of income from a person?

The Commissioner may, by notice in writing, require any person who, in the
Commissioner’s opinion, is required to file a return of income for a tax year or
assessment year but who has failed to do so to furnish a return of income for that
year within thirty days from the date of service of such notice or such longer or
shorter period as may be specified in such notice or as the Commissioner may allow.

If person who has filed return for If person who has not filed return
any of the last five completed tax for any of the last five completed
years. tax years.
Any such notice may be issued in Notice may be issued in respect of
respect of one or more of the last one or more of the last ten
five completed tax years or completed tax years.
assessment years.
Provided further that the above time-limitation shall not apply if the
Commissioner is satisfied on the basis of reasons to be recorded in writing that a
person who failed to furnish his return has foreign income or owns foreign assets.

When a return is considered as complete?

A return of income:
1. shall be in the prescribed form and shall contain prescribed annexures
and statements The Board may prescribe different returns for different
classes of income or persons (including persons subject to final
taxation).
2. shall state all the relevant particulars including a declaration of the
records kept;
3. shall be signed by an individual and in other cases it shall be signed by
persons representative.
4. shall contain evidence of payment of tax as per return.
5. shall contain a wealth statement (u/s 116); and
6. shall be accompanied with a foreign income and assets statement (as
required under section 116A).

5
 1/9/2022

Is return filed electronically considered as correct under the law?

A return filed electronically on web or any computer readable media will
also be treated as return.
The Board may make rules for:
a) determining eligibility of the data of returns
b) e-intermediaries who will digitise the data of returns and transmit it to
the Income Tax Department under their digital signatures and
c) other matters relating to electronic filing.

Revision of Return

Within 60 days After 60 days

No approval of commissioner
is required

Revise income is more Revise income is less than

than income in return income in return

No approval of commissioner Approval of commissioner is required.

is required If Commissioner has not passed an order of
approval in writing, for revision of return, with in
60 days from the date revision was required, it
will be assumed that Commissioner has given the
approval.

6
 1/9/2022

Can return once furnished be revised subsequently and what are the
conditions attached thereto?
If a person discovers any omission or wrong statement in a return, he may revise it by
fulfilling the following conditions:
1. it is accompanied by the revised accounts or revised audited accounts. However
Commissioner may waive this condition if he is satisfied that filing of these accounts
is not necessary.
2. the taxpayer files the reason for revision, in writing, signed by him,
3. it is accompanied by approval of the Commissioner, however this condition shall not
apply if revised return is filed within 60 days of filing of return; Further where the
Commissioner has not passed an order of approval in writing, for revision of return,
with in 60 days from the date revision was required, it will be assumed that
Commissioner has given the approval.
Further no approval of the Commissioner is required if taxable income declared is
more than or the loss declared is less than determined u/s 120. and

4. taxable income in revised return is greater than the income determined in previous
order issued by tax or appellate authority (u/s 121,122,122A,129,132,or 133)and -
loss in revised return is less than loss determined in previous order issued by tax or
appellate authority (u/s 121,122,122A,129,132,or 133).
If any of above condition is not fulfilled, the return shall be considered as an invalid. The
mode and manner for seeking the revision shall be prescribed by the Board.
The commissioner shall grant approval in case of a bonafide omission or wrong
statement.

7
 1/9/2022

How much amount is required to be paid when filing a revised return on account of
tax evaded, default surcharge and penalty?

Time of furnishing revised return Amount required to be deposited

Before receipt of notice of audit Tax short paid/evaded + default surcharge + No
penalty
During audit and before receipt of Tax pointed out by Commissioner + default
show cause notice for amendment of surcharge +25 % of penalty
assessment
After issuance of show cause notice Tax evaded + default surcharge +50% penalty [ If
for amendment of assessment this amount is paid the show cause notice shall
have no effect]

If a person files a return it will be assumed that he himself has signed it, unless he
proves otherwise.

Business bank account [Sec. 114A]

(1) Every taxpayer shall declare to the Commissioner the bank account
utilized by the taxpayer for business transactions.
(2) Business bank account shall be declared through original or modified
registration form.
“Business bank account” means a bank account utilized by the taxpayer for
business transaction declared to the Commissioner through original or
modified registration form. Only businesses i.e. sole proprietor, AOP or
companies are required to declare through FBR e-portal.
Note: Last date to declare business bank accounts is 30 September 2021
Legal implication for not declaring Business bank account An expense
incurred for business purpose shall be inadmissible while computing income
from business u/s 21.

8
 1/9/2022

Wealth statement [Sec. 116]

Wealth statement contain following particulars –
(a) the total assets and liabilities of the person, his spouse, minor children and other
dependents on the date specified in the notice;
(b) assets transferred by the person to any other person during the period specified in
the notice and the consideration for the transfer;
(c) the detail of expenditures incurred by the person, his spouse, minor children and
other dependents during the period specified in the notice; and
(d) wealth reconciliation statement. It will be furnished by the due date specified in the
notice. [S. 118(4)]
▪ Every resident individual shall furnish a wealth statement and wealth reconciliation
statement along with the return.
▪ It will be furnished by the due date for furnishing the return.
▪ Every member of an AOP shall furnish. wealth statement and wealth reconciliation
statement along with the return of AOP.
▪ The Commissioner may by notice require any individual to file a wealth statement.

Can wealth statement once furnished be revised?

If a person discovers any omission or wrong statement in wealth statement, he can
revise it by intimation to the Commissioner.
Revision can be made before the receipt of notice for amendment in assessment.
Revised wealth reconciliation and reasons for revision will also be filed.
If Commissioner is of opinion that revision is made for correcting a bona fide omission
or wrong statement, he will declare such revision as valid (after providing an
opportunity of being heard).
Explanation - Wealth statement cannot be revised after the expiry of 5 years from the
due date of filing of return.

9
 1/9/2022

Foreign income and assets statement [S. 116A]

Every resident individual having:
▪ foreign income equal to or greater than 10,000 United States dollars or
▪ having foreign assets with a value equal to or greater than 100,000 United States dollars
shall furnish a foreign income and assets statement.
It shall be in the prescribed form and verified in the prescribed manner.
It will give particulars of:
(a) the person’s total foreign assets and liabilities as on the last day of the tax year;
(b) any foreign assets transferred by the person to any other person during the tax year and
the consideration received; and
(c) complete particulars of foreign income derived and the expenditure incurred during the
tax year and that the expenditure wholly and necessarily for the purposes of deriving
the said income.
The Commissioner may by notice require any individual to furnish the foreign income and
assets statement who (in the opinion of the Commissioner) was required to furnish it but
who has failed to do so. It will be furnished by the date specified in the notice.

Notice of discontinued business [Sec. 117]

(1) A person discontinuing a business shall give Commissioner a notice within 15 days of
the discontinuance.
(2) (2) The person discontinuing a business shall, himself or on being required by the
Commissioner by notice, furnish a return. The period of return will start from the 1st
day of tax year (of discontinuance) and will end on the date of discontinuance. This
period shall be treated as a separate tax year.
What powers are available to the Commissioner in respect of a person who has not
given the notice of discontinuance of business to Commissioner?
If a taxpayer does not gives notice of discontinuance and the Commissioner has grounds
to believe that:
a business has been discontinued or
taxpayer is likely to discontinue the business, he may serve notice to furnish the return.
Commissioner will notify the period for which return is required.
What is the status of return furnished by a person who has discontinued his business?
A return furnished here will be treated as deemed assessed.

10
 1/9/2022

Method of furnishing returns and other documents [Sec. 118]

1. A return of income,
2. a wealth statement
3. a foreign income and assets statement
shall be furnished in the prescribed manner.

Date of fling of Income Tax Return

For Companies
Tax year ends Due date for filing
If the tax year ends between January 1st to On or before December 31st next following
June 30th the end of the tax year
If the tax year ends between July 1st to On or before September 30th next
December 31st following the end of the tax year
Other than Companies
- Return required to be filed through On or before September 30th next
e-portal in case of salaried individual following the end of the tax year
- Return of income by an individual or AOP
A return required to be furnished for discontinued business (under section 117) shall
be furnished by the due date specified in the notice.

11
 1/9/2022

Extension of time for furnishing returns and other documents [Sec. 119]
(1) A person required to furnish –
(a) a return of income (u/s 114 or 117);
(b) a wealth statement (u/s 116),
may apply to the Commissioner for an extension of time.
The application for extension will be made by the due date of furnishing the
above documents.
After receiving application if Commissioner is satisfied that the applicant is
unable to furnish the return by the due date because of –
(a) absence from Pakistan;
(b) sickness or other misadventure; or
(c) any other reasonable cause,
the Commissioner may grant the applicant an extension of time.
An extension should not exceed 15 days from the due date. In exceptional
circumstances longer time may be granted.

Where the Commissioner has not granted extension for furnishing return, the Chief
Commissioner may on application made by taxpayer grant extension or further
extension upto 15 days.
In exceptional circumstances longer time may be granted.
If a person gets extension he will still be liable to pay the default surcharge.

12
 1/9/2022

Normal Assessments [Sec. 120]

What is the status of complete return of income filed by taxpayer?
If the taxpayer has furnished a complete return of income (other than a revised
return),-
(a) It will be considered that Commissioner has made an assessment of taxable income
and tax due thereon; and
(b) return shall be considered as an assessment order issued by Commissioner on the
day the return was furnished.
A return shall be considered as complete if it fulfills the conditions mentioned in
Sec114(2)

A return furnished shall be processed through automated system to arrive at correct

amounts of total income, taxable income and tax by making adjustments for-
(a) any arithmetical error;
(b) any apparent incorrect claim,
(c) disallowance of any loss, deductible allowance or tax credit and
(d) disallowance of carry forward of loss
Adjustments shall be made after issuing a system generated notice to the taxpayer.
The response of taxpayer shall be considered before making any adjustment.
In case no response is received in 30 days of notice, adjustments shall be made.
If no adjustment is made in 6 month of filing of return, the amounts in the return (as
declared by the taxpayer) shall be assumed to be adjusted and taxpayer shall be
informed automatically through IRIS.
Note: Provisions of this sub-section shall apply from the date notified by FBR. However
FBR has yet not notified any date. Resultantly, the concept of self-assessment is still
applicable.

13
 1/9/2022

For the purposes of this section,

(a) ''arithmetical error” includes any wrong or incorrect calculation of tax (including
any minimum or final tax)
(b) an incorrect claim apparent from return” is a claim, in the return:
(i) of an item, which is inconsistent with another entry of the same or other item in
return;
(ii) of any tax payment which is not verified from the collection system; or
(iii) for a deduction, where deduction exceeds specified statutory limit (amount,
percentage, ratio, fraction)

If return is incomplete
If return is incomplete, the Commissioner shall issue a notice to taxpayer informing
deficiencies (other than incorrect tax on taxable income, or short payment of tax) and
will order him to provide the missing information and particulars.
If tax payer complies with notice in due If tax payer does not comply with the
time notice
The return shall be considered as The return will be considered as invalid
complete on the day it was furnished and it will be assumed that no return has
been furnished

14
 1/9/2022

Best judgment assessment [Sec. 121]

If a person fails to:
1. furnish return of income in response of notice under subsection (3) and (4) of section
114; or
2. furnish a return as non-resident ship owner or aircraft owner; or
3. furnish the wealth statement; or
4. produce before Commissioner or a special audit panel appointed (u/s 177) or
5. any person employed by a firm of chartered accountants, (u/s 177) accounts, or
documents required for making assessment of income and tax
the Commissioner may, based on available information and exercising his best
judgement, make an assessment of the income and tax.
Now assumed assessment shall have no legal effect.

For Ref Only

subsection (3) of section 114 Return less than 12 months
subsection (4) of section 114 Non filin of Return less than 12 months

After making an assessment, the Commissioner shall issue the assessment order
stating-
▪ the taxable income;
▪ the tax due;
▪ the tax paid, if any; and
▪ the time, place and manner of appealing the assessment order.
Best judgement assessment can be issued within 5 years after the end of the tax year to
which it relates.
Further where notice for furnishing a return of income (under subsection (4) of section
114) is issued for one or more of the last 10 completed tax years best judgement
assessment order shall be issued within 2 years from the end of tax year in which notice
for filing of return is issued

15
 1/9/2022

Time limit for

Best Judgment Assessment

If ANY return filed during last If NO return filed during last Five
Five completed TY or any of completed TY.
other non-compliance was Notice for furnishing a return of
conducted. income is issued for one or more of
Within 5 years after the end of the last 10 completed tax and no
the tax year to which it relates. compliance was made
Assessment for TY 2021 can be Within 2 years from the end of tax
issued till? year in which notice for filing of return
TY 2026. is issued.
If notice issued for TY 2015 on 30 Sep 2021?
End of TY 30-6-2022
Within 2 years 30-6-2024

Time limit for Best Judgment

Assessment- Example

Mr. Kamran has not filed return
for TY 2019 but has filed return
for TY 2020. Commissioner has
issued notice on 31-12-2021 to
file return but no compliance was
made. Now commissioner wants
to issue best judgment
assessment order. What is the
time limit to issue best judgment
assessment order?
Maximum time limit to issue best
judgement assessment order is
Within 5 years after the end of the tax
year to which it relates.
TY to which it relate 30-6-2019
Five years from end 30-6-2024

16
 1/9/2022

Time limit for Best Judgment

Assessment- Example

Mr. Kamran has not filed return
for TY 2016 but has regularly
filed return onwards. Now on 15th
July 2021 commissioner wants to
issue best judgment assessment
for TY 2016. Can best judgment
be framed for TY 2016?
Maximum time limit to issue best
judgement assessment order is
Within 5 years after the end of the tax
year to which it relates.
TY to which it relate 30-6-2016
Five years from end 30-6-2021
th
After 30 June 2021 best judgment
assessment order can not be issued

Time limit for Best Judgment

Assessment- Example

Mr. Noman has not filed return
for TY 2014 and onwards. Now on
15-12-2021 commissioner issued
notice to file the returns but no
compliance was made. Now
Commissioner wans to frame
best judgment assessment for TY
2014. Can best judgment be
framed for TY 2014?
If NO return filed during last Five completed
TY notice for furnishing a return of income
can be issued for one or more of the last 10
completed tax. If no compliance made best
judgement assessment order can be issued
Within 2 years from the end of tax year in
which notice for filing of return is issued.
TY in which notice issued 2022
End of TY in which notice issued 30-6-22
Two years from end 30-6-24
Last date to issue best judgment assessment
order is 30-6-2024

17
 1/9/2022

Time limit for Best Judgment Assessment- Example

Mr. Anzar has not filed return for TY
2010 and onwards. Now on 15-12-2021
commissioner wants to issued notices
to filing the returns.
For how many years notice can be
issued for furnishing returns of
income?
If no compliance was made for how
many years best judgement assessment
ca be framed and what will the time
limit to issue best judgement
assessment order?
As NO return has been filed during last Five
completed TY notice for furnishing a return of
income can be issued for one or more of the last
10 completed tax year. So last completed tax year
is 2021 and commissioner can issue notice till TY
2012 for filing returns.
If no compliance was made best judgement
assessment order can be issued for all 10 years
within 2 years from the end of tax year in which
notice for filing of return is issued.
Date of notice 15-12-22
End of TY in which notice issued 30-06-22
Two years from end 30-06-24
Last date to issue best judgment assessment
order is 30-6-2024

Amendment of assessments [Sec. 122]

The Commissioner may amend following assessment order:
▪ treated/assumed as issued (under section 120) or
▪ best judgment assessment (issued u/s 121),
by making such alterations/additions as he considers necessary.
Where a taxpayer furnishes a revised return u/s 114 –
1. It will be considered that the Commissioner has made an assessment of
taxable income and tax as mentioned in the revised return; and
2. the revised return shall be considered as an amended assessment order
issued by the Commissioner on the day the revised return was
furnished.

18
 1/9/2022

Time limit for

Amended Assessment

First amendment Commissioner may further amend, as

An assessment order can be
amended within 5 years from the
end of the financial year in which
the Commissioner has issued or is
treated to have issued the
original assessment order.
If return filed on 30-8-2020
End of FY 30-6-2021
Within 5 years 30-6-2026
many times as may be necessary, the
original assessment within the later of
(a) 5 years from the end of the
financial year in which the
Commissioner has issued or is
treated as having issued the
original assessment order; or
(b) 1 year from the end of the financial
year in which amendment was
passed.

Time limit for First

Amended Assessment

Mr. Amir filed return of TY 2020 An assessment order can be amended

on 30-09-2020. within 5 years from the end of the
Identify the date by which financial year in which the
Amendment of assessment can Commissioner has issued or is treated
be made by commissioner? to have issued the original assessment
order.
Return filed on 30-9-2020
End of FY 30-6-2021
Within 5 years 30-6-2026

19
 1/9/2022

Time limit for First

Amended Assessment

Mr. Amir filed return of TY 2014 An assessment order can be amended

on 30-09-2014. within 5 years from the end of the
On 30th Sep 2021 commissioner financial year in which the
want to issue notice for first Commissioner has issued or is treated
amendment of assessment ? to have issued the original assessment
order.
Return filed on 30-9-2014
End of FY 30-6-2015
Within 5 years 30-6-2020
On 30th Sep 2021 commissioner can
not issue first amendment order.

Time limit for Futher

Amended Assessment

Mr. Amir filed return of TY 2020
on 30-09-2020.He was selected
for audit and the first amendment
of assessment took place on
March 2026. Identify the date by
which 2nd Amendment of
assessment can be made by tax
authorities?
Second amendment within the later of
(a) 5 years from the end of the
financial year in which the
Commissioner has issued original
assessment order that is 30-6-2026
(b) 1 year from the end of the financial
year in which amendment was
passed.
End of FY of amendment 30-6-2026
Within One ear 30-6-2027
Therefore Commissioner can amend for 2nd
time by 30 June 2027

20
 1/9/2022

Time limit for Further

Amended Assessment

Mr. Amir filed return of TY 2020
on 30-09-2020.He was selected
for audit and the first amendment
of assessment took place on
March 2024. Identify the date by
which 2nd Amendment of
assessment can be made by tax
authorities?
Second amendment within the later of
(a) 5 years from the end of the
financial year in which the
Commissioner has issued original
assessment order that is 30-6-2026
(b) 1 year from the end of the financial
year in which amendment was
passed.
End of FY of amendment 30-6-2024
Within One ear 30-6-2025
Therefore Commissioner can amend for 2nd
time by 30 June 2026

Circumstance (ground) on the basis of

which assessment can be amended

First amendment Subsequent amendment

The Commissioner may amend or
further amend an assessment order,
where through audit or on the basis of
definite information, he is satisfied
that
(i) any income chargeable to tax has
escaped assessment; or
(ii) total income is under-assessed,
or lower tax rate is applied, or
excessive relief is provided; or
(iii) any amount under a head of
income has been misclassified.
The Commissioner may
amend/further amend an assessment
order, if order is prejudicial to interest
of revenue.
Definite information” includes information on:
▪ sales or purchases of any goods made by the taxpayer,
▪ receipts of the taxpayer from services rendered,
▪ other receipts that maybe chargeable to tax under this
Ordinance,
▪ the acquisition, possession or disposal of any money,
asset, valuable article or investment or
▪ expenditure incurred by the taxpayer.
A change of opinion is not a definite information or make
the assessment erroneous.

21
 1/9/2022

Show cause notice

An assessment can only be Which days shall be excluded

amended/further amended if taxpayer Any period during which the proceedings
has been provided with an opportunity are adjourned due to:
of being heard. ▪ stay order or
Amended assessment order (under this ▪ Alternative Dispute Resolution
section) shall be issued within 120 days proceedings or
of issuance of show cause notice or in ▪ agreed assessment proceedings
such extended period as the (under section 122D) or
Commissioner may allow. ▪ the time taken through adjournment
The extension shall not exceed 90 days. by the taxpayer not exceeding 60 days
(This proviso shall be applicable to a shall be excluded from computing above
show cause notice issued on or after the days.
first day of July, 2021)

Revision by the Commissioner

[Sec. 122A]

(1) The Commissioner can, suomoto, call
for record of proceedings in which an
order is passed by an Officer.
(2) Commissioner may make revision in the
order passed by his sub-ordinate.
(3) Order of revision shall not be
prejudicial to the taxpayer.
Commissioner cannot revise the order
The Commissioner cannot revise the order
if:
▪ appeal is filed against assessment or
▪ time for making appeal is yet there
If any order is remanded back to any lower
authority by the Commissioner for
modification, alteration, implementation of
directions or de novo proceedings
(proceedings from start), the order shall be
issued by lower authority in 120 days.

22
 1/9/2022

Revision by the Chief Commissioner

122B

The Chief Commissioner may He can call for records when order is
suomoto or on application by passed by his subordinate.
taxpayer, call for record of Chief Commissioner may make
proceedings of issuance of an revision in order of his sub-ordinate.
exemption or lower rate certificate.

Agreed assessment in certain cases [Sec 122D]

If a taxpayer, after receiving show cause notice for amendment of assessment, intends to
settle his case, he may file offer of settlement (in the prescribed form) before assessment
oversight committee, in addition to filing reply to Commissioner.
The Committee after examining offer may call for record of the case and after affording
opportunity of being heard to the taxpayer, may decide to accept or modify the offer of the
taxpayer through consensus and communicate its decision to the taxpayer.

Where the taxpayer is satisfied with the decision of Committee: Where - Committee has not
(a) the taxpayer shall deposit the tax (including penalty and default reached any consensus or
surcharge as per Committee decision); taxpayer is not satisfied with the
(b) Commissioner shall amend assessment according to Committee decision of Committee
decision after tax payment (including penalty and default the case shall be referred back to
surcharge) as per decision of the Committee; (c) taxpayer shall Commissioner for decision on the
waive right of appeal against such amended assessment; and basis of reply of the taxpayer on
(d) no further proceedings shall be undertaken on issues show cause notice for amendment
decided by the Committee if the tax as per clause (c) has been of assessment
deposited by the taxpayer.

23
 1/9/2022

Agreed assessment in certain cases [Sec 122D]

The Committee shall comprise This section shall not apply: -

following tax authorities (having 1. in cases involving concealment of
jurisdiction over the taxpayer), income or
namely:- 2. where interpretation of question
(a) the Chief Commissioner Inland of law effect identical other cases.
Revenue;
(b) the Commissioner Inland
Revenue; and
(c) the Additional Commissioner
Inland Revenue.

Provisional assessment in certain cases [Sec. 123]

Concealed asset means any property or asset which was acquired from
income chargeable to tax.
Local concealed asset Agency of Federal
Where a concealed asset of any person is impounded by Government has
any department or agency of the Federal Government or a impounded concealed
Provincial Government, the Commissioner may, at any time property of Mr. Kamran
before issuing any assessment order under section worth Rs 50,000,000 on 15th
121(best judgement) or any amended assessment order December 2021.What legal
under section 122, issue to the person a provisional options are available to
assessment order or provisional amended 234 assessment commissioner in the above
order, as the case may be, for the last completed tax year case.
of the person taking into account the concealed asset.
The Commissioner shall finalise a provisional assessment
order or a provisional amended assessment order as soon
as practicable

24
 1/9/2022

Provisional assessment in certain cases [Sec. 123]

Offshore concealed asset Agency of Federal
Where an offshore asset of any person, not declared Government has
impounded concealed
earlier, is discovered by the Commissioner or any
property of Mr.
department or agency of the Federal Government or a Kamran worth Rs
Provincial Government, the Commissioner may at any 50,000,000 on 15th
time before issuing any assessment order under section December 2021. in
121 or amended assessment order under section 122, USA. What legal
issue to the person a provisional assessment order or options are available
to commissioner in
provisional amended assessment order, as the case may
the above case?
be, for the last completed tax year of the person taking
into account the offshore asset discovered.
The Commissioner shall finalise a provisional assessment
order or a provisional amended assessment order as
soon as practicable

Concealment of income includes:

a) the suppression of any item of receipt liable to tax, or failure to disclose
taxable income;
b) claiming any deduction/expenditure not actually incurred; c) any act
referred in section 111; and
c) claiming any income/receipt as exempt which is actually taxable.
Explanation.- All of above will only be considered as “concealment of
income” if it is proved that taxpayer has knowingly and willfully committed
these acts;

25
 1/9/2022

Evidence of assessment [Sec. 126]

Any assessment order issued will not be:
▪ quashed or considered void for want of form and
▪ considered as invalid because of reason of any mistake, if taxpayer is
designated in it according to common understanding.

Supreme Court

High Court

APPELLATE AUTHORITIES
Appellate. Tribunal Inland
Revenue

Commissioner Inland
revenue (Appeals)

26
 1/9/2022

Appeal to the Commissioner

A person dissatisfied Condition for filing an An appeal shall

with orders passed by appeal An appeal (a) be in the prescribed
a Commissioner may cannot be filed if the form;
file an appeal to the taxpayer has not paid (b) be verified in the
Commissioner the tax along with the prescribed manner;
(Appeals) return. (c) state the grounds of
appeal;
(d) be accompanied by
fee

27