Income Tax Appeal In Lahore , Pakistan

Income tax appeal in Lahore,Pakistan is typically based on disagreements between the taxpayer and the tax department. These disagreements result from the mismatch between the taxpayer’s taxable income and the tax responsibility owed on it, as well as the application of default surcharges and penalties, etc. To reduce the time and difficulties a taxpayer must deal with during the compliance stage. Inland Revenue Deputy/Assistant Commissioner may resolve most cases of taxpayers at their level.

There are several situations in which the Tax Department and the Taxpayer disputes are based on facts, numbers, and legal ramifications. There are two types of tax appeal:

  1. Income tax appeal
  2. Sales tax appeal

Income Tax Appeal

In order to file an income tax appeal, a person should have the following important information:

1. Right Of Income Tax Appeal

Income Tax Ordinance, 2001 establishes a legal process that grants the right of appeal before the Commissioner. If it is insufficient, the law allows a person the right to appeal before the Appellate Tribunal and Higher Courts of Pakistan.

2. Which Individuals Are Eligible For Appeal

A person can file an income tax appeal:

  • Any person has the right to appeal any decision made by a commissioner or officer of internal revenue of which they disagree with.
  • Any partner or member of the association in the case of an individual business can register his appeal.
  • In the case of an Association of Persons (AOP) and a Company, the chief executive officer can file an income tax appeal.
  • While, in the unfortunate case of a deceased person, the legal representatives of the deceased one can appeal.
  • Regarding any person who has legal recognition as a handicap or any person who is not a citizen;  the legal representative of the person can file a tax appeal in their place.

3. Requirements For Appeal

A person must submit the tax owed. He should also submit his income tax return based on their claimed income to file an appeal.

4. Deadline To File An Appeal

The deadline to file an appeal (appeals) before the commissioner is thirty (30) days. The countdown starts from the day you get the notice of demand for an assessment, penalty, or any other order.

Sales Tax Appeal

To file a sales tax appeal, the following information can prove to be helpful:

1. Appeal To Collectors

Any eligible person can file an appeal with the collectors’ appeal. It might be against the original orders of the Additional Collector, Deputy Collector, Assistant Collector, and Superintendent. The concerned person needs to take the following points into consideration while filing a collectors’ appeal:

Appeal Limitation:

A decision or order issued by the Additional Collector, Deputy Collector, Assistant Collector, or Superintendent must be appealed to the Collector within thirty days of receiving the decision or order.

Delay Condonation:

The Collector may accept an appeal submitted after thirty days have passed (appeals) if he determines that the appellant has good reason not to file the appeal within the allotted time.

Appeal Settlement:

After giving both parties a chance to speak, the Collector of Sales Tax (appeals) may make the order(s). These orders can be which he deemed appropriate, affirming, changing, altering, and setting aside. Moreover, he can annul the judgment or any order appealed against.

2. Arrangement With The Appellate Tribunal

Related persons may file an appeal against the Collector’s order before the appellate tribunal. 

  • Limitation And Time Computation

A 60-day window following the date of receipt of any order or decision of a Sales Tax officer is the deadline for filing an appeal against such order or decision. When calculating the 60-day limitation period, you can eliminate the day the order is passed and the time leading up to its issuance and reception.

  • Condonation Of Delay

If the Appellate Tribunal determines that the appellant had a good reason for not filing the appeal on time, it may excuse the delay.

3. Reference To The High Court

If the concerned person is unsatisfied with the decisions of the collectors’ bench and the appellate tribunal, he can file a reference to the high court.

  • Who Can File A Reference To The High Court

The party who is unhappy with the Appellate Tribunal’s decision can bring an application to the High Court.

  • Time Limitation

Within ninety days, after the Appellate Tribunal has given the order, the tax filer must submit a reference.

  • Issues That Can Be Referenced

If a legal issue arises from the Appellate Tribunal’s decision that the application is being made against, a person can make a reference to the High Court.

4. Leave To Appeal To The Supreme Court

Consumers can request a leave of appeal from the Supreme Court of Pakistan in opposition to the High Court’s decision. However, this is the last and the most important step of sales income return. The decision of the supreme court is final. Moreover, the related person has to accept it as a last resort.

Conditions under which appeals are filed in Lahore, Pakistan

If the Punjab Revenue Authority decides ( after doing all the necessary verification) that a person is eligible to register but hasn’t done so, it will notify the person within fifteen days and award them with a number. However, everyone has the opportunity to be heard throughout the mandatory PRA registration process. Moreover, no one is registered without prior notification.

De-Registration Process

Tax appeals in Pakistan’s Lahore can occur most frequently in conjunction with:

  1. Based on the ex-parte assessment (best judgment assessment) that the DCIR and Commissioner approved.
  2. Based on the pertinent information and facts held by the department.
  3. If adjustments are made to a taxpayer’s self-assessment or any additional changes are made to an assessment that has previously been amended, the Commissioner may see those changes as invalid and detrimental to the Tax Department.
  4. When the Commissioner determines, after carefully examining all the facts and figures and audited documents, that his department has incorrectly assessed the income chargeable to tax or has incorrectly classified the head of income to reduce the tax liability, he can make an alteration to the taxpayer’s self-assessment. Moreover,  he can also make a further alteration to an already altered assessment.
  5. Suppose the appellant felt that the Commissioner’s (Appeals) decision or the Commissioner’s (Appeals) updated assessment was incorrect. In that case, the appellant could exercise their right to appeal the matter to the next appellate forum, the Appellate Tribunal.

Since the Appellate Tribunal is the last and most authoritative fact-finding body within the Ministry of Law, a person cannot further income tax cases from there (a few cases can be exceptions). Additionally, a person can also forward this matter to the High Court based on legal arguments before forwarding it to the Supreme Court of Pakistan. The Supreme court gives the final decision. After that, the supreme court closes the case. 

For smooth processing, you need to contact any law firm for legal help. At CMA law associate, we offer support for the preparation of appeals and filings as well as representation before commissioners, appellate tribunals, high courts, and the supreme court. We are just one call away to solve all your tax-related problems and worries.