Income Tax Ordinance, 2001 — Section 122B: Revision by the 2[Chief Commissioner]

1[122B. Revision by the 2[Chief Commissioner].—(1) The 3[Chief Commissioner] may, either of his own motion or on an application made by the taxpayer for revision, call for the record of any proceedings relating to issuance of an exemption or lower rate certificate with regard to collection or deduction of tax at source under this Ordinance, in which an order has been passed by any authority subordinate to him.

(2)Where, after making such inquiry as is necessary, 4[Chief Commissioner] considers that the order requires revision, the 5[Chief Commissioner] may, after providing reasonable opportunity of being heard to the taxpayer, make such order as he may deem fit in the circumstances of the case.] 6[7[ ] ] 1 Added by the Finance Act, 2006. 2 The words “Regional Commissioner” Substituted by “Chief Commissioner” by Finance Act, 2014. 3 The words “Regional Commissioner” Substituted by “Chief Commissioner” by Finance Act, 2014. 4 The words “Regional Commissioner” Substituted by “Chief Commissioner” by Finance Act, 2014 5 The words “Regional Commissioner” Substituted by “Chief Commissioner” by Finance Act, 2014 6 Substituted by the Finance Act, 2010. The substituted provision has been made effective from 05.06.2010 by sub-clause (77) of clause 8 of the Finance Act, 2010. Earlier the substitution was made through Finance (Amendment) Ordinance, 2009 which was re-promulgated as Finance (Amendment) Ordinance, 2010 and remained effective till 05.06.2010. The substituted section “122C” read as follows: “122C. Provisional assessment. — (1) Where in response to a notice under sub-section (3) or sub-section

(4)of section 114 a person fails to furnish return of income for any tax year, the Commissioner may, based on any available information or material and to the best of his judgment, make a provisional assessment of the taxable income of the person and issue a provisional assessment order specifying the taxable income assessed and the tax due thereon.

(2)Notwithstanding anything contained in this Ordinance, the provisional assessment completed under sub-section (1) shall be treated as the final assessment after the expiry of sixty days from the date of service of order of provisional assessment and the provisions of this Ordinance shall apply accordingly: Provided that the provisions of sub-section (2) shall not apply if return of income along with wealth statement, wealth reconciliation statement and other documents required under sub-section (2A) of section 116 are filed by the person for the relevant tax year during the said period of sixty days.” 7 Section 122C omitted by Finance Act 2017,the omitted section 122C is read as under: “122C. Provisional assessment.— (1) Where in response to a notice under sub-section (3) or sub-section (4) of section 114 a person fails to furnish return of income for any tax year, the Commissioner may, based on any available information or material and to the best of his judgment, make a provisional assessment of the taxable income or income of the person and issue a provisional assessment order specifying the taxable income or income assessed and the tax due thereon.

(2)Notwithstanding anything contained in this Ordinance, the provisional assessment order completed under sub-section (1) shall be treated as the final assessment order after the expiry of 7[forty-five] days from the date of service of order of provisional assessment and the provisions of this Ordinance shall apply accordingly: 7 [“Provided that the provisions of this sub-section shall not apply, if

(a)return of income along with wealth statement, wealth reconciliation statement and other documents required under sub-section (2A) of section 116 are filed by the person being an individual or an association of persons for the relevant tax year during the said period of forty five days; and

(b)the individual or an association of persons presents accounts and documents for conducting audit of income tax affairs for that tax year: Provided further that the provisions of sub-section (2) shall not apply 252 Chapter X – Procedure 1 [122D. Agreed assessment in certain cases.- (1) Where a taxpayer, in response to a notice under sub-section (9) of section 122, intends to settle his case, he may file offer of settlement in the prescribed form before the assessment oversight committee, hereinafter referred to as the Committee, in addition to filing reply to the Commissioner.

(2)The Committee after examining the aforesaid offer may call for the 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.

(3)Where the taxpayer is stratified with the decision of the Committee,

(a)the taxpayer shall deposit the amount of tax payable including any amount of penalty and default surcharge as per decision of the Committee;

(b)the Commissioner shall amend assessment in accordance with the decision of the Committee after tax payable including any amount of penalty and default surcharge as per decision of the Committee has been paid;

(c)the taxpayer shall waive the right to prefer appeal against such amended assessment; and

(d)no further proceedings shall be undertaken under this Ordinance in respect of issues decided by the Committee unless the tax as per clause

(c)has not been deposited by the taxpayer.

(4)Where the Committee has not been able to arrive at a consensus or where the taxpayer is not satisfied with the decision of the Committee, the case shall be referred back to the Commissioner for decision on the basis of reply of the taxpayer in response to notice under sub-section (9) of section 122 notwithstanding proceedings or decision, if any, of the Committee.

(5)The Committee shall comprise the following income tax authorities having jurisdiction over the taxpayer, namely:

(a)the Chief Commissioner Inland Revenue;

(b)the Commissioner Inland Revenue; and

(c)the Additional Commissioner Inland Revenue.

(a)to a company, if return of income tax alongwith audited accounts or final accounts, as the case may be, for the relevant tax year are filed by the company electronically during the said period of forty-five days; and

(b)if the company presents accounts and documents for conducting audit of its income tax affairs for that tax year.” 1 New Section 122D inserted through Finance Act, 2020 dated 30th June, 2020 253 Chapter X – Procedure

(6)This section shall not apply in cases involving concealment of income or where interpretation of question of law is involved having effect on other cases.

(7)The Board may make rules regulating the procedure of the Committee and for any matter connected with, or incidental to the proceedings of the Committee.]