Income Tax Ordinance, 2001 — Section 130: Appellate Tribunal

1[130. Appellate Tribunal.— (1) There shall be established an Appellate Tribunal Inland Revenue hereinafter called as the Appellate Tribunal to exercise jurisdiction, conferred on it under this Ordinance: Provided that the existing members including Chairman of the Appellate Tribunal shall continue to hold office, on the same terms and conditions as applicable to them prior to the commencement of the Tax Laws (Amendment) Act,

(9)Subject to sub-section (10), if the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority.

(10)If the members of a 2[Bench] are equally divided on a point, they shall state the point on which they differ and the case shall be referred by the Chairperson for hearing on that point by one or more other members of the Appellate Tribunal, and the point shall be decided according to the opinion of the majority of the members of the Tribunal who have heard the case including those who first heard it.

(11)If there are an equal number of members of the Appellate Tribunal, the Federal Government may appoint an additional member for the purpose of deciding the case on which there is a difference of opinion.

(12)Subject to this Ordinance, the Appellate Tribunal shall have the power to regulate its own procedure, and the procedure of Benches of the Tribunal in all matters arising out of the discharge of its functions including the places at which the Benches shall hold their sittings.” 1 Section 130 substituted through The Tax Laws (Amendment) Act, 2024. The Substituted section read as follows: “130. Appellate Tribunal.- (1) There shall be established an Appellate Tribunal to be called the Appellate Tribunal Inland Revenue to exercise the powers and perform the functions conferred on the Appellate Tribunal Inland Revenue by this Act.

(2)The Appellate Tribunal Inland Revenue shall consist of a chairman and such other judicial and accountant members who shall be appoints in such numbers and in such manner as the Prime Minister may prescribe by rules, which may be made and shall take effect notwithstanding anything contained in section 237 or any other law or rules for the time being in force.

(3)No person shall be appointed as judicial member of an Appellate Tribunal Inland Revenue unless he

(a)has been a Judge of a High Court;

(b)is or has been a District Judge; or

(c)is an advocate of a High Court with a standing of not less than ten years; or

(d)possesses such other qualification as may be prescribed under sub-section (2) of this section.

(4)No person shall be appointed as an accountant member of a Appellate Tribunal Inland Revenue unless he

(a)is an officer of the Inland Revenue Service equivalent in rank to that of 1[Chief Commissioner Inland Revenue];

(b)is a Commissioner Inland Revenue or Commissioner Inland Revenue (Appeals) having not less than three years experience as Commissioner 1[ ];

(c)has for a period of not less than ten years practiced professionally as a chartered accountant within the meaning of the Chartered Accountants’ Ordinance, 1961 (X of 1961); or

(d)has for a period of not less than ten years practiced professionally as a cost and management accountant within the meaning of the Cost and Management Accountant’ Act, 1966 (XIV of 1966).

(5)The constitution, functioning of benches and procedure of the Appellate Tribunal Inland Revenue shall be regulated by rules which the Prime Minister may prescribe.

(6)The rules in respect of the matters covered under this section made prior to commencement of the Tax Laws (Second Amendment) Ordinance, 2019 shall continue in force unless amended or repealed.]” 264 Chapter X – Procedure 2024 ( of 2024), till the completion of their term of office unless resigned or removed earlier on the grounds provided in the proviso to sub-section (5).

(2)The Appellate Tribunal shall consist of members who shall be appointed by the Federal Government in such numbers, in accordance with such procedure and on such terms and conditions as the Federal Government may prescribe by rules, which shall be made and take effect notwithstanding anything contained in section 237 of this Ordinance or the Federal Public Service Commission Ordinance, 1977 (XLV of 1977) or any other law or rules, for the time being in force.

(3)A person shall be eligible to be appointed as a member of the Appellate Tribunal, if he

(a)is an advocate of a High Court for not less than fifteen years and possesses such other qualifications as may be prescribed by rules under this section; 1[(b) has, for an aggregate period of not less than ten years, been –

(i)in practice as a chartered accountant, either individually or in a firm of the chartered accountants, within the meaning of Chartered Accountants Ordinance, 1961 (X of 1961); or

(ii)a chartered accountant, within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961), and has been in employment of a chartered accountant in practice as specified in sub-clause (i) above at least for a period of ten years;]

(c)has for a period of not less than ten years practiced professionally as a cost and management accountant within the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966);

(d)is an officer of the Inland Revenue in BS-21 or above; or

(e)is an officer of the Inland Revenue in BS-20, having served in such grade for three years or more.

(4)The Federal Government shall appoint any member possessing qualifications provided in clauses (a), (13) and (c) of sub-section (3) as Chairman of the Appellate Tribunal. The Chairman shall hold office for a period of three years provided that the Federal Government may reappoint the Chairman for such further term or terms as it may deem appropriate. 1 Clause (b) substituted by the Finance Act, 2025. The substituted clause read as follows: “(b) has for a period of not less than ten years practiced professionally as a chartered accountant within the meaning of the Chartered Accountants’ Ordinance, 1961 (X of 1961);” 265 Chapter X – Procedure

(5)The members including the Chairman shall cease to hold office on attaining the age of sixty-two years provided that the members falling under clauses (c) and (d) of sub-section (3) shall cease to hold office on attaining the age of superannuation, under the law regulating their service: Provided that a member including the Chairman may resign or may be removed by the Federal Government, on the recommendation of performance review committee, to be constituted by the rules made under sub-section (2), at any time before the expiry of his term or attaining the age of superannuation, as the case may be, on grounds, interalia, of inefficiency or misconduct, as prescribed by the rules made under sub-section (2).

(6)The procedure of the Appellate Tribunal Inland Revenue including constitution of benches, case management system, distribution of cases and other matters ancillary or incidental thereto shall be regulated by the rules made under sub-section (2).] 266 Chapter X – Procedure