ISLAMABAD: Commissioners Inland Revenue have been bound to issue order in amended assessment within 120 days under Section 122 of Income Tax Ordinance, 2001.
According to budget 2021/2022 documents, the Finance Bill 2021 proposed amendment Section 122 of the Income Tax Ordinance, 2001.
The amendment proposed through Finance Bill 2021 in sub-section (9), for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:–
“Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, so however, such extended period shall in no case exceed ninety days. This proviso shall be applicable to a show cause notice issued on or after the first day of July, 2021.
Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or agreed assessment proceedings under section 122D or the time taken through adjournment by the taxpayer not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso.”