Income Tax Ordinance, 2001 — Section 239: Savings

239. Savings. —1[(1) Subject to sub-section (2), in making any assessment in respect of any income year ending on or before the 30 th day of June, 2002, the provisions of the repealed Ordinance in so far as these relate to computation of total income and tax payable thereon shall apply as if this Ordinance had not come into force.] 2[(2) The assessment, referred to in sub-section (1), shall be made by an income tax authority which is competent under this Ordinance to make an assessment in respect of a tax year ending on any date after the 30th day of June, 2002, and in accordance with the procedure specified in section 59 or 59A 3[or 61] or 62 or 63, as the case may be, of the repealed Ordinance.] 4 [(3) The provisions of 5[sub-sections] (1) and (2) shall apply, in like manner, to the imposition or charge of any penalty, 6[default surcharge]or any other amount, under the repealed Ordinance, as these apply to the assessment, so however that procedure for such imposition or charge shall be in accordance with the corresponding provisions of this Ordinance.]

(4)Any proceeding under the repealed Ordinance pending on the commencement of this Ordinance before any income tax authority, the Appellate Tribunal or any Court by way of appeal, reference, revision or prosecution shall be continued and disposed of as if this Ordinance has not come into force.

(5)Where the period prescribed for any application, appeal, reference or revision under the repealed Ordinance had expired on or before the commencement of this Ordinance, nothing in this Ordinance shall be construed as enabling such application, appeal, reference or revision to be made under this Ordinance by reason only of the fact that a longer period is specified or provision for an extension of time in suitable cases by the appropriate authority. 1 Sub-section (1) substituted by the Finance Act, 2002. The substituted sub-section (1) read as follows: “(1) The repealed Ordinance shall continue to apply to the assessment year ending on the 30th day of June 2003. “ 2 Sub-section (2) substituted by the Finance Act, 2002. The substituted sub-section (2) read as follows: “(2) In making any assessment in respect of any income year ending on or before the 30th day of June 2002, the provisions of the repealed Ordinance relating to the computation of total income and the tax payable thereon shall apply as if this Ordinance has not come into force.” 3 Inserted by the Finance Act, 2003. Earlier this was inserted by S.R.O. 633(I)/2002, dated 14.09.2002 which stands rescinded by SRO 608(I)/2003, dated 24.06.2003 with effect from 01.07.2003. 4 Sub-section (3) substituted by the Finance Act, 2002. The substituted sub-section (3) read as follows: “(3) Where any return of income has been furnished by a person for any assessment year ending on or before the 30th day of June 2003, proceedings for the assessment of the person for that year shall be taken and continued as if this Ordinance has not come into force. “ 5 The word “sub-section” substituted by the Finance Act, 2005. 6 The words “additional tax” 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. 482 Chapter XIII – Miscellaneous

(6)Any proceeding for 1[ ] prosecution in respect of an assessment for an income year ending on or before the 30th day of June 2002 shall be taken and continued as if this Ordinance has not come into force.

(7)Any income tax, super tax, surcharge, penalty, 2[default surcharge], or other amount payable under the repealed Ordinance may be recovered under this Ordinance, but without prejudice to any action already taken for the recovery of the amount under the repealed Ordinance.

(8)Any election or declaration made or option exercised by any person under any provision of the repealed Ordinance and in force immediately before the commencement of this Ordinance shall be treated as an election or declaration made, or option exercised under the corresponding provisions, if any, of this Ordinance.

(9)Anything done or action taken under the repealed Ordinance in so far as it is not inconsistent with the 3[provisions] of this Ordinance shall, without prejudice to anything already done or any action already taken, be treated as having been done or taken under this Ordinance.

(10)Any agreement entered into, appointment made, approval given, recognition granted, direction, instruction, notification, notice, order or rule issued or made under any provision of the repealed Ordinance and in force or valid at the commencement of this Ordinance shall, so far as it is not inconsistent with the corresponding provision of this Ordinance or any agreement, appointment entered into, approval given, recognition granted, direction, instruction, notification, notice, order or rule issued or made under this Ordinance, be treated as entered into, made, given, granted or issued, as the case may be, under that corresponding provision and shall unless revoked, cancelled or repealed by, or under, this Ordinance, continue in force accordingly.

(11)Any appointment, act of authority or other thing made or done by any authority or person and subsisting or in force at the commencement of this Ordinance which would have been made or done under any substantially corresponding provision of this Ordinance by any authority or person other than the one specified in the repealed Ordinance, or in any manner other than as specified in the repealed Ordinance shall continue in force and have effect as if it has been made or done under the corresponding provision of this Ordinance by 1 The words “the imposition of penalty or” omitted by the Finance Act, 2002. 2 The words “additional tax” 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. 3 The word “provision” substituted by the Finance Act, 2005. 483 Chapter XIII – Miscellaneous the authority or person, or in the manner specified in the corresponding provision as if such provision had been in force when it was made or done. 1[(12) Any notification issued under section 50 of the repealed Ordinance and in force on the commencement of this Ordinance shall continue to remain in force, unless 2[amended, modified], cancelled or repealed by, or under, this Ordinance.] 3[(13) The authority which issued any notification, notice, direction or instruction, or made any rule, agreement or appointment, or granted any approval or recognition, referred to in sub-sections (10) and (12), shall have the power to 4[ ] 5[amend, modify], cancel or repeal any such notification, notice, direction, instruction, rule, agreement, appointment, approval or recognition.] 6[(14) Any yield from National Saving Schemes of Directorate of National Savings where investment was made on or before 30th June, 2001 and any income derived from Mahana Amdani Account where monthly instalment does not 7[exceed] one thousand rupees shall continue to remain exempt and any person paying such yield or income shall not deduct tax under section 151 therefrom and the recipient of such yield or income shall not be required to produce an exemption certificate under section 159 in support of the said exemption.]

(15)Section 107AA of the repealed Ordinance shall continue to apply until the 30th day of June, 2002. 1 Sub-section (12) substituted by the Finance Act, 2002. The substituted sub-section (12) read as follows: “(12) Clause 77C of Part I of the First Schedule of the repealed Ordinance shall continue to apply to the yield on National Savings Deposit Certificates issued before 1st July, 2001 and a person paying yield on such a Certificate shall not deduct tax under section 151 from the payment.” 2 The word “revoked” substituted by the Finance Act, 2005. 3 Sub-section (13) substituted by the Finance Ordinance, 2002. The substituted sub-section (13) read as follows: “ (13) There is no requirement for the holder of Certificate to which sub-section (14) applies to acquire an exemption certificate under section 159 to give effect to the exemption.“ 4 The word “revoke” substituted by the Finance Act, 2005. 5 The words and comma “amended, modified” substituted by the words and comma “amend, modify” by the Finance Act, 2014. 6 Sub-section (14) substituted by the Finance Act, 2003. The substituted sub-section (14) read as follows: “ (14) Clause (77C) of Part I of the First Schedule of the repealed Ordinance shall continue to apply to the yield on National Savings Deposit Certificates issued before 1st July, 2001, and a person paying yield on such a Certificate shall not deduct tax under section 151 from the payment, and the holder of such Certificate shall not be required to acquire an exemption certificate under section 159 to give effect to the said exemption. 7 The word “exceeds” substituted by the Finance Act, 2005. 484 Chapter XIII – Miscellaneous

(16)The Income Tax Rules made under the repealed Ordinance, on the valuation of perquisites shall continue to apply 1[in respect of any income year ending on or before] the 30th day of June 2002.

(17)Item 8(5)(h) of the Third Schedule to the repealed Ordinance shall continue to apply to assets covered by the item. 2[(18)The period of limitation provided in clause (d) of subsection (2) of section 131 and sub-section (1) of section 133 shall continue to apply where any decision of the Commissioner (Appeals) or the Appellate Tribunal is received prior to the date of commencement of the Tax Laws (Amendment) Act, 2024.] 3[ ] 4 [239A. Transition to Federal Board of Revenue.—Any reference to the Central Board of Revenue, wherever occurring, in this Ordinance and the rules made thereunder and Notifications, Orders, or any other instrument issued thereunder shall be construed as a reference to the Federal Board of Revenue on the commencement of the Federal Board of Revenue Act, 2007.] Chapter XIII – Miscellaneous and Taxation Officer, wherever occurring, in this Ordinance and the rules made thereunder 1[and in any other law in force at the time of promulgation of this Ordinance] and notifications, orders, circulars or clarifications or any instrument issued thereunder shall be construed as reference to the Chief Commissioner Inland Revenue, Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and officer of Inland Revenue, respectively.]