Draft Amendment in Chapter XII of the Income Tax Rules, 2002

GOVERNMENT OF PAKISTAN
REVENUE DIVISION
FEDERAL BOARD OF REVENUE

Islamabad, the 9th February, 2018.

NOTIFICATION
(Income Tax)

S.R.O. 162(I)/2018.- The following draft of certain further amendments in the Income Tax Rules, 2002, which the Federal Board of Revenue proposes to make in exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published for the information of all persons likely to be affected thereby, as required by sub-section (3) of said section, and notice is hereby given that the draft shall be taken into consideration by the Federal Board of Revenue after seven days of its publication in the official Gazette.

Any objection or suggestion, which may be received from any person, in respect of the said draft, before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue, namely:-

DRAFT AMENDMENT

In the aforesaid Rules,- in Chapter-XII:- for the Rule 76, the following shall be substituted, namely:-

"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________

Amount of appeal fee paid [ ]
Date of payment of appeal fee [ ]

Amount of tax demand based on return of income. [ ]
Date of payment of [ ]

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 [ ]

Appellants Status": Individual | AOP | Company

(Pl. encircle the appropriate box)

Address of Appellant [ ]

Name of Authorized Representative (if any) [ ]

Status of Representative: CA | C&MA | ADV | ITP | AR

(Pl. encircle the appropriate box)

Address to which the Notice may be sent [ ]

Name of the Commissioner (who passed the order) [ ]

CIT Code [ ]

INCOME DECLARED [ ] ASSESSED [ ]

Signature of the official________

Who received the appeal________

Name________

(in capital letter)

Designation

---

TAX ASSESSED

(a) Income tax [ ]

(b) Default Surcharge [ ]

(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)"] [ ]

General Guidelines.

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

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

(a) the order appealed against;

(b) notice of demand;

(c) proof of payment of appeal fee;

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

(e) 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

1. 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.

2. I am competent to file the appeal in my capacity as ________.

3. 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)

(i) Receipt of registered post [ ]
(ii) Receipt of courier service [ ]
(iii) 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 No.
From Zone/Range

Date appeal received by transfer

In ward register

________ [ ] [ ]

Appeal transferred to No.
Zone/Range

---

Date of appeal transferred out________

Outward register

UDC/LDC/ Officer of Appeal Section ________ (Initial) CIR(Appeal) ________ (Initial)

APPEAL ACKNOWLEDGEMENT RECEIPT

Appeal Zone/ ________ City________

National Tax No/CNIC. [ ] Appeal No. ________

Appellant Name________

Signature of Appellant ________
Date of receipt of Appeal ________
Signature, and name of receiving 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),

Documents/Check List

(a) the order appealed against; [ ]

(b) notice of demand; [ ]

(c) proof of payment of appeal fee; [ ]

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

(e) a certificate showing the date of communication of the memorandum of appeal and grounds of appeal to the respondent department. [ ]

(2) 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.

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 3 working days, require the appellant or his authorized representative, if any, to bring the memorandum of appeal in conformity with the form set out herein above in Rule 76B, within the time limitation as specified in sub section (5) of section 127 of the Ordinance subject to just exceptions under subsection (6) of section ibid and the appeal so received shall not be deemed to have been filed unless the provisions of these rules have been fully complied with.

(2) 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/declared as defined in section 172 of Income Tax Ordinance, 2001, 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:

(a) For applications received before 01:00PM on a working day, hearing shall be fixed on the next working day; and
(b) 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;-

(2) The registers of the commissioner (Appeals) specified in sub Rule-I shall be preserved forever.

FORMAT OF REGISTERS

APPEAL REGISTER

STAY APPLICATION REGISTER

EARLY HEARING REGISTER

COMPLIANCE REGISTER OF COURT DIRECTIONS/ORDERS

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

MPR (APPEALS) FOR THE MONTH OF ________ 201 /
(CIR APPEALS)

Particulars of reporting officer:

Appeals for Disposal

Aging Composition

Analysis of Appeals decided.

Disposal of Stay Applications

Disposal of cases on directions of Superior Courts.

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

STAY APPLICATIONS DISPOSAL REPORT

FOR THE MONTH OF________, 201

76M. Arrangement and preservation of record.- (1) The record of appeals, and other applications shall consist of two parts, namely 'Part-A' and 'Part-B'.

Part-A

(a) Folder containing the particulars of appeals, applications and brief abstract of the impugned orders of the Commissioner;
(b) order sheet or chronological abstract of orders;
(c) original copy of memorandum of appeal;
(d) original copies of grounds of Appeal;
(e) affidavits;
(f) judgment or any other final order against which appeal is preferred; and
(g) judgments and orders of High Courts and Supreme Court.

(2) The document specified in sub rule-I 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 follows;

(a) Documents to be preserved permanently.

(i) Part "A" of the appeals, and applications; and
(ii) Judgments of the High Court, Supreme Court in constitutional petitions.

(b) Documents to be preserved for twelve years:

Part "B" of the appeals record and any other documents as directed by the Board.

(c) 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).

(2) All court fee stamps, affixed to documents which are to be destroyed, shall be removed there from and burnt.

(3) The record shall be destroyed by tearing or otherwise so that no document may be used again.

(4) 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.

(5) 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.

(2) 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).

76P. Rules to be followed in letter and spirit.- (1) These rules shall be followed in letter and spirit and any lapse may lead to action under Government Servants (Efficiency and Discipline Rules), 1973.".

[F.No.1(84)-S(A&A)/2018]

(Reema Masud)
Secretary (IR-Policy)