Section 122B of Income Tax Ordinance, 2001 has provided that the Chief Commissioner has the authority to revise assessment order.
In a move aimed at enhancing the flexibility and efficiency of the income tax assessment process, the Federal Board of Revenue (FBR) has detailed the provisions of Section 122B within the Income Tax Ordinance, 2001. This section, updated up to June 30, 2021, provides the Chief Commissioner with the authority to revise assessments orders, bringing a valuable tool for both tax authorities and taxpayers alike.
Section 122B of the Income Tax Ordinance, 2001, reads as follows:
“122B. Revision by the Chief Commissioner.—(1) The 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 the issuance of an exemption or lower rate certificate with regard to the 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, the Chief Commissioner considers that the order requires revision, the Chief Commissioner may, after providing a reasonable opportunity of being heard to the taxpayer, make such order as he may deem fit in the circumstances of the case.”
This provision grants the Chief Commissioner the discretion to review and revise orders related to the issuance of exemptions or lower rate certificates for the collection or deduction of tax at source under the Income Tax Ordinance, 2001. The Chief Commissioner can initiate this revision either independently or in response to an application submitted by the taxpayer.
The significance of Section 122B lies in its ability to ensure a fair and accurate assessment process. By allowing the Chief Commissioner to scrutinize orders issued by subordinate authorities, the provision introduces a layer of oversight to prevent potential errors or discrepancies in the original assessments. This mechanism is crucial in maintaining the integrity of the taxation system and fostering trust between taxpayers and the revenue authorities.
The Chief Commissioner, following an inquiry, may determine that an order requires revision. In such cases, the taxpayer is entitled to a reasonable opportunity to be heard before any revised order is made. This ensures transparency and provides taxpayers with a platform to present their perspectives on the matter.
Tax experts suggest that the introduction of Section 122B is a positive step towards creating a more responsive and accountable tax administration. The provision not only empowers the Chief Commissioner but also establishes a channel for taxpayers to seek redress if they believe that an assessment order needs reconsideration. This aligns with the broader goals of creating a fair and balanced tax environment that encourages compliance and minimizes disputes.
Section 122B of the Income Tax Ordinance, 2001, represents a significant development in the realm of tax administration in Pakistan. By providing the Chief Commissioner with the authority to revise assessments orders, the provision aims to enhance the accuracy and fairness of the income tax assessment process. This, in turn, contributes to building a more robust and trustworthy taxation system that meets the needs of both the government and taxpayers.
