STER MARCH 2024 APPEALS – MASTER SHEET BY STT (CAF-02 TAX PRACTICE)

MA T # 11 ATTEMPT SIR TARIQ TUNIO CSS (COMMISSIONER FBR) + CA TEACHER (TAX/LAW/ITB) 0332-2130867
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SHE TOPIC COMMISSIONER (APPEALS) ATIR HIGH COURT
Appellate Authority CIR (Appeals): Any person dissatisfied with following orders passed by CIR or → Appellate Tribunal Inland Revenue (ATIR → High Court
officer inland revenue may prefer appeal to CIR(Appeals) against the order. → Decision of ATIR on appeal relating to Question of Fact shall be final → Reference to HC heard by Bench of not less than 2 Judges
Circumstances Giving Appeal may be filed by any person dissatisfied with orders of CIR or taxation officer (1) Where Taxpayer or CIR objects to order passed by CIR (A) taxpayer or Aggrieved person/CIR may file reference to HC stating the Question(s)
Rise to Appeals adjustment of arithmetical errors & incorrect claims by automated system (2) Best CIR may appeal to ATIR against such order of Law arising out of such order
judgement assessment order (3) Amendment of Assessment, (4) An order holding a
(i.e. Orders Appealed person to be personally liable to pay an amount of tax, which was required to be
Against) Where HC is satisfied that question of law arises out of the order of
collected or deducted by him/her of having collected or deducted fails to pay the same
ATIR, it may proceed to hear the case.
as required under law, (5) Order declaring a person to be the representative of a
nonresident person, (6) an order refusing to rectify mistake, either in full or in part, as
claimed by the taxpayer, or (7) an order having the effect of enhancing the assessment
or reducing a refund or otherwise increasing the liability of the person [→ No appeal
shall be made against order of assessment unless taxpayer has paid tax due with return]
Requirements of Appeal Appeal shall be →in prescribed form →verified in prescribed manner → state Appeal shall be → in prescribed form →verified in prescribed manner Aggrieved person/CIR may prefer an application → in prescribed form
precisely grounds upon which appeal is made → accompanied by prescribed fee →accompanied by prescribed fee →preferred to ATIR within time limits along with statement of case to HC → Statement shall set out facts of
& → lodged with CIR (A) within prescribed time limits case, determination of ATIR & Q of Law arising out of ATIR order
Prescribed Fee Appeal Against Assessment Order →Company Rs. 5000 →Non-coy Rs. 2,500 → Company Rs. 5000 Rs. 100/- (All Taxpayers)
In Any Other Case →Company Rs. 5000 →Non-company Rs. 1000 → Non-company Rs. 2,500 [No fee is paid by CIR] [No fee is paid by CIR]
Prescribed Time Limits Appeal Relating to Assessment/Penalty Order → within 30 days of date of Within 60 days of date of service of CIR (A) order Within 90 days of communication of order of ATIR
service of demand notice
Appeal Relating to Other Order → Within 30 days of date of service of order
Condonation of Time Upon application in writing by appellant, CIR (A) may admit an appeal after Upon application in writing, ATIR may admit an appeal after expiration Application may be admitted after period of limitation when appellant
Limits expiration of prescribed time limit if satisfied that appellant was prevented by of specified time limit if satisfied that person appealing was prevented or applicant satisfies HC that he had sufficient cause for not preferring
sufficient cause from lodging appeal within period by sufficient cause from filing appeal within that period appeal or making application within such period.
Date of Hearing CIR (A) shall give notice of day fixed for hearing of appeal to appellant & CIR → ATIR shall afford oobh to the parties to the appeal
→ In case of default by any party on date of hearing, ATIR may proceed
ex parte to decide appeal on basis of available record
Stay of Recovery → Where in a particular case, CIR (A) is of opinion that recovery of tax levied → Notwithstanding appeal has been filed to ATIR, tax shall be payable → Notwithstanding reference to HC is filed tax shall be payable in
shall cause undue hardship to taxpayer he may stay recovery of tax (after in/acc/with assessment made unless recovery is stayed by ATIR accordance with order of ATIR
affording oobh to CIR) for period not exceeding 30 days in aggregate → Appellant/taxpayer shall file application for stay of recovery →ATIR Stay of Recovery → Where recovery of tax has been stayed by HC by
grants stay if it is of the opinion that recovery of tax levied & upheld by order, such order shall cease to have effect on expiration of 6 months
→ After affording oobh to CIR, CIR (A) may stay recovery of tax for further period CIR(A) shall cause undue hardship to taxpayer →ATIR shall afford oobh following the day on which it was made unless appeal is decided or such
of 30 days [provided that order on appeal shall be passed within the said period to CIR before issuing stay order →Stay granted by ATIR shall not exceed order is withdrawn by HC earlier
of thirty days] 180 days in aggregate →Stay order shall cease to have effect on Stay of Refund → Judgment of HC reduces tax resulting in refund → CIR
expiration of 180 days following date on which it was made and CIR shall wants to prefer petition for leave to appeal to SCP →CIR may apply to
proceed to recover tax → In computing period of 180 days, period for HC in this case for stay of refund within 30 days →HC may he make order
which recovery of tax was stayed by HC shall be excluded. authorizing CIR to postpone refund until disposal of appeal by SCP.
Adjournments CIR (A) may adjourn the hearing of the appeal from time to time
Addition of New Before hearing of appeal, CIR(A) may allow addition new ground where satisfied
Grounds of Appeal that omission of ground from form of appeal was not willful or unreasonable.
Calling Particulars & Before disposing of an appeal, CIR (A) may call for such particulars as CIR (A) may Before disposing of an appeal, ATIR may call for such particulars - as it
Causing Inquiry by CIR require respecting matters arising in appeal or cause further enquiry to be made may require - in respect of the matters arising on the appeal or cause
by CIR further enquiry to be made by CIR
New Documentary CIR(A) shall not admit documentary material/evidence not produced before CIR
Material or Evidence → unless satisfied appellant was prevented by sufficient cause
Types of Decision in Assessment Case→ CIR (A) may confirm, modify or annul assessment order Assessment Case → ATIR may make an order to (i) Affirm, modify or → Upon hearing a reference, HC shall decide the question of law raised
Appeal annul AO (ii) Remand the case to the CIR or CIR (A) for making inquiry or by the reference and pass judgment thereon specifying the grounds on
Other Than Assessment Case → CIR (A) may make such order as he thinks fit taking action as specified by ATIR. which such judgment is based and the Tribunal’s order shall stand
Other Cases → ATIR make an order to (i) affirm, vary or annul decision, modified accordingly.
& (ii) issue such consequential directions as case may require → HC shall send copy of judgment under seal of Court to ATIR
Assessment Powers CIR (A) shall not ↑ tax amount of AO or ↓ refund unless appellant is given ATIR shall not ↑ tax amount of AO/Penalty or ↓ refund unless appellant
reasonable opportunity of showing cause against such increase or decrease is given reasonable opportunity of showing cause against such ↑↓

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 Appeal Order As soon as practicable, CIR (A) shall specify in order amount of tax upheld & → ATIR shall communicate its order to the taxpayer and the
(Time limits) serve order on appellant/ CIR Commissioner
→ Appeal order shall be passed not later than 120 days from date of filing of
appeal [extendable by 60 days by CIR (A) with reasons in writing] → ATIR shall decide the appeal within 6 months of its filing
→ Period Not Counted – period during which hearing of appeal is adjourned at
request of appellant or is postponed due to any appeal proceedings stay order
remand alternative dispute resolution proceedings for any other reason
Consequential Effect on Where any change is made in assessment of AOP or new assessment of AOP is Where any change is made in assessment of AOP or new assessment of
Members of AOP ordered to be made CIR (A) may authorize CIR to amend accordingly AO made AOP is ordered to be made ATIR may authorise CIR to amend accordingly
on member of AOP and time limit shall not apply AO made on member of AOP and time limit shall not apply
APPOINTMENT OF ATIR

Appellate Authority Appellate Tribunal Inland Revenue (ATIR)

Composition of ATIR ATIR shall consist of Chairman and such other judicial and accountant members who shall be appointed in such numbers and in such manner as the Prime Minister may prescribe by rules.
Judicial Members No person shall be appointed as judicial member he (1) has been a Judge of a High Court (2) is or has been a District Judge (3) is an advocate of a High Court with standing of not less than 10 years; or (4) possess such other
qualification as may be prescribed
Accountant Members No person shall be appointed as accountant member unless he (1) is officer of Inland Revenue equivalent to Chief Commissioner (2) is CIR / CIR(A) having not less than 3 years of experience as CIR (3) has practiced professionally
as Chartered Accountant for not less than 10 years (4) has practiced professionally as cost and management accountant for not less than 10 years.
Members Equally Divided → Cases is referred to the Chairman ATIR → Chairman ATIR refers the case to new member(s), who hear the case → Case is decide by majority of original as well as new (referee) member(s)

ALTERNATIVE DISPUTE RESOLUTION

CONDITIONS IN WHICH ADR MAY BE OPTED
§ Aggrieved person in/con/with any
dispute pertaining to
(a) liability of tax of Rs. 100 M or above
against aggrieved person or
admissibility of refund
(b) extent of waiver of default
surcharge and penalty
(c) any other specific relief required to
resolve the dispute
may apply to Board for appointment of
ADRC for resolution of any hardship or
dispute mentioned in detail in
application, which is under litigation in
any court of law or appellate authority,
except where criminal proceedings have
been initiated.
COMMITTEE COMPOSITION
(i) Rtd. judge not below rank of judge of HC (Chairperson of
ADRC); nominated by Board from panel notified by Law and
Justice Division for the purpose
(ii) CCIR having jurisdiction over the case, and
(iii) person nominated by taxpayer from panel notified by Board
comprising:
(a) CAs, CMAs and advocates having minimum 10 years’
experience in field of taxation;
(b) officers of IRS retired in BS 21 or above; or
(c) reputable businessmen nominated by Chambers of
Commerce and Industry. (Note: Taxpayer shall not
nominate CA or advocate if CA/ advocate is or has been
auditor or authorized representative of taxpayer.)
COMMITTEE WORK AND DECISION
BINDING ON CIR ON WITHDRAWAL OF APPEAL
§ Decision of Committee shall be binding on CIR when
aggrieved person, being satisfied with decision, has
withdrawn appeal pending before court of law or any
appellate authority in/res/of dispute and has communicated
order of withdrawal to CIR.
§ CIR shall also withdraw appeal, if any, pending before any
court or appellate authority in/res/of dispute within 30 days
of communication of order of withdrawal by aggrieved
person to CIR.
§ If order of withdrawal is not communicated to CIR within 60
days of service of decision of Committee upon aggrieved
person, decision of Committee shall not be binding on CIR.
PAYMENT OF TAX
DISSOLUTION OF ADRC AND MATTER TAKEN UP BY APPELLATE
AUTHORITY
§ If Committee fails to decide within period of 60 days, the
Board shall dissolve Committee by order in writing and the
matter shall be decided by the court or appellate authority
where the dispute is pending under litigation.
§ The Board shall communicate the order of dissolution to the
aggrieved person, court of law or the appellate authority and
to the Commissioner.
§ On receipt of the order of dissolution, the court of law or the
appellate authority shall decide the appeal within 6 months
of communication of the said order.
RECOVERY STAYED DURING ADR PROCEEDINGS

§ Application for dispute resolution shall be
accompanied by initial proposition for
resolution of dispute, including an offer
of tax payment.
APPOINTMENT OF COMMITTEE
§ Board examines application and appoints
a committee within 15 days of receipt of
application
§ Board shall communicate order of
appointment of Committee to aggrieved
person, court or appellate authority
where dispute is pending and to CIR.
§ Committee shall examine the issue and may, if it deems
necessary,
o conduct inquiry
o seek expert opinion
o direct officer of IR or any other person to conduct audit
and shall decide dispute by majority, within 45 days of its
appointment extendable by another 15 days for reasons to
be recorded in writing.
§ Aggrieved person shall make payment of income tax and
other taxes and within such time as decided by the
Committee and all decisions and orders made or passed shall
stand modified to that extent
The aggrieved person shall make the payment of income tax and Recovery of tax payable by taxpayer in/con/with any dispute for
other taxes and within the time decided by Committee and all which a Committee has been appointed shall be deemed to
decisions and orders made or passed shall stand modified to that have been stayed on constitution of Committee till the final
extent. decision or dissolution of Committee, whichever is earlier.
NOT PRECEDENT & REMUNERATIONS
The decision by the Committee shall not be cited or taken as a
precedent in any other case or in the same case for a different tax
year.
The Board may prescribe the amount to be paid as remuneration
for the services of the members of the Committee, other than the
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