Income Tax Ordinance, 2001 — Section 124: Assessment giving effect to an order

124. Assessment giving effect to an order. — (1) Except where sub-section

(2)applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Part III of this Chapter by the Commissioner (Appeals), 3[if the value of the assessment or, as the case may be, refund of the tax does not exceed twenty million rupees,] Appellate Tribunal, High Court, or Supreme Court an assessment order or amended assessment order is to be issued to any person, the Commissioner shall issue the order within two years from the end of the financial year in which the order of the Commissioner (Appeals), 4[if the value of the assessment or, as the case may be, refund of the tax does not exceed twenty million rupees,] Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner. 1 New subsection 1A inserted through Finance Supplementary (Second Amendment) Act, 2019 2 The words “after making it” omitted by the Finance Act, 2003. 3 Inserted through The Tax Laws (Amendment) Act, 2024. 4 Inserted through The Tax Laws (Amendment) Act, 2024. 254 Chapter X – Procedure

(2)Where, by an order made under Part III of this Chapter by the 1[ ] Appellate Tribunal, High Court, or Supreme Court, an assessment order is set aside 2[wholly or partly,] and the Commissioner 3[or Commissioner (Appeals), as the case may be,] 4[if the value of the assessment or, as the case may be, refund of the tax does not exceed twenty million rupees,] is directed to 5[pass] a new assessment order, the Commissioner 6[or Commissioner (Appeals), as the case may be,] 7[if the value of the assessment or, as the case may be, refund of the tax does not exceed twenty million rupees,] shall 8[pass] the new order within 9[one year from the end of the financial year in which] the Commissioner 10[or Commissioner (Appeals), as the case may be,] 11[if the value of the assessment or, as the case may be, refund of the tax does not exceed twenty million rupees,] is served with the order 12[:] 13[Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred, against the order 14[ ], passed by 15[ ] Appellate Tribunal or a High Court.]

(3)Where an assessment order has been set aside or modified, the proceedings may commence from the stage next preceding the stage at which such setting aside or modification took place and nothing contained in this Ordinance shall render necessary the re-issue of any notice which had already been issued or the re-furnishing or re-filing of any return, statement, or other particulars which had already been furnished or filed.

(4)Where direct relief is provided in an order under section 129 or 132, the Commissioner shall issue appeal effect orders within two months of the date the Commissioner is served with the order. 1 The words “Commissioner (Appeals)” omitted by the Finance Act, 2010. 2 Inserted by the Finance Act, 2003. 3 Inserted by the Finance Act, 2008. 4 Inserted through The Tax Laws (Amendment) Act, 2024. 5 The word “make” substituted by the Finance Act, 2010. 6 Inserted by the Finance Act, 2008. 7 Inserted through The Tax Laws (Amendment) Act, 2024. 8 The word “make” substituted by the Finance Act, 2010. 9 The words “six months from the date” substituted by the Finance Act, 2002. 10 Inserted by the Finance Act, 2008. 11 Inserted through Tax Laws (Amendment) Act, 2024. 12 The full stop substituted by the Finance Act, 2005. 13 Inserted by the Finance Act, 2005. 14 The words “setting aside the assessment” omitted by the Finance Act, 2010. 15 The words “a Commissioner (Appeals)” omitted by the Finance Act, 2010. 255 Chapter X – Procedure 1[(4A) Where the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court has confirmed the tax payable as determined in the order appealed against no appeal effect order will be required to be issued and the Commissioner shall proceed to effect recovery. (4B) Subject to the provisions of sub-section (2) where the Appellate Tribunal, High Court or Supreme Court has partly set aside the order and confirmed or modified the order on some other issues that were subject matter of the appeal, the Commissioner shall issue an appeal effect order on the prescribed form determining the tax payable as a result of the confirmation or modification by the Appellate Tribunal, High Court or Supreme Court and excluding the tax payable on the matters that have been set aside or remanded and the tax payable on the basis of the issues that have been confirmed or modified shall be paid or recovered under the provisions of the Ordinance.]

(5)Where, by any order referred to in sub-section (1), any income is excluded

(a)from the computation of the taxable income of a taxpayer for any year and held to be included in the computation of the taxable income of the taxpayer for another year; or

(b)from the computation of the taxable income of one taxpayer and held to be included in the computation of the taxable income of another taxpayer, the assessment or amended assessment relating to that other tax year or other taxpayer, as the case may be, shall be treated as an assessment or amended assessment to be made in consequence of, or to give effect to, a finding or direction contained in such order.

(6)Nothing in this Part shall prevent the issuing of an assessment order or an amended assessment order to give effect to an order made under Part III of this Chapter by the Commissioner (Appeals), 2[if the value of the assessment or, as the case may be, refund of the tax does not exceed twenty million rupees,] Appellate Tribunal, High Court, or Supreme Court. Chapter X – Procedure