KARACHI: The President Anwar Kashif Mumtaz and General Secretary Mohammad Rehan Siddiqui of Pakistan Tax Bar Association (PTBA) in a joint letter has sought information regarding impact of recent amendments in appellate procedure including pecuniary jurisdiction. Following is the text of letter sent to Chairman of Appellate Tribunal, Inland Revenue, Islamabad:
Text begins:
30th December, 2024
To,
The Chairman,
Appellant Tribunal Inland Revenue,
2nd Floor, Shaheed-e-Millat Secretariate China Chowk Islamabad.
Dear Sir;
Re: Request for Information under Article 19A of the Constitution of Pakistan.
We, are writing to you with reference to the Tax Laws (Amendment) Act 2024 which was assented on 03 May 2024 through which certain amendments were introduced to revamp the two-tier appeal system whereby pecuniary jurisdiction in appeal was introduced in the entire appeal system falling under Income Tax Ordinance 2001, Sales tax Act 1990 and Federal Excise Act 2005.
Significant amendments were introduced in the tax laws whereby jurisdiction of cases where the tax demand does not exceed Rupees twenty million lies with the Commissioner and in all other cases the jurisdiction would fall with the Appellant Tribunal Inland Revenue.
Since this change has been brought about, we have been receiving serious and significant complaints from our members about the operation of the Benches, impudent behavior of the member of benches and non- receipt of the judgments/orders even after the lapsed of stipulated timeline to decide the cases i.e. as per the provision of sub-section (1) of section 132 of the Income Tax Ordinance, 2001, appeal has to be decided within Ninety (90) days of its filing.
Over Six months have passed since enactment of Tax Laws (Amendment) Act 2024 and it is time to do a reality check if the Tax Laws (Amendment) Act 2024 has achieved it objectives and if appeals are being decided within the time provided under the Law as referred above.
Accordingly, we would request you to kindly provide us the following information, excluding stay applications decided.
1) Total number of cases pending before Tax Laws (Amendment) Act 2024.
2) Total number of cases filed after Tax Laws (Amendment) Act 2024.
3) Total number of pending cases filed after the Tax Laws (Amendment) Act 2024, duly distinguishing cases where hearing has been concluded and no order has been passed?
3) How many cases were adjudicated after the passage of the Tax Laws (Amendment) Act, 2024?
An honest assessment and replies to the above request for information will clearly show that the objective of the Tax Laws (Amendment) Act 2024 for streamlining the appeal system under tax laws has miserably failed to achieve its objectives. Taxpayers continue to suffer. Getting justice has become difficult and expensive. There are serious and significant reservations from our membership about the capacity/working of Appellate Tribunal Inland Revenue.
Pakistan Tax Bar Association remains committed to assist in strengthening the judicial institutions so that the taxpayers get fair hearing/trial and due justice.
The request for information is being made pursuant to Article 19A of the Constitution.
We look forward to your indulgence to provide the aforesaid information.
Thanking you in advance.