Commissioner of Inland Revenue can call for records and revise orders, subject to statutory safeguards and appeal restrictions
The Federal Board of Revenue (FBR) has retained the suo moto powers of Commissioners of Inland Revenue to call for records of proceedings and revise orders passed by Inland Revenue officers during Tax Year 2027.
The FBR’s Income Tax Ordinance, 2001, updated up to June 30, 2026, sets out these powers under Section 122A for Tax Year 2027, covering the period from July 1, 2026 to June 30, 2027.
Under Section 122A, the Commissioner may, suo moto, call for the record of any proceeding conducted under the Income Tax Ordinance or the repealed Ordinance where an order has been passed by an Officer of Inland Revenue.
After conducting any inquiry considered necessary, the Commissioner may revise the order if he considers that revision is required. The Commissioner has discretion to make such revisions as deemed appropriate under the law.
Revision cannot prejudice taxpayer
A key safeguard under Section 122A is that any order issued following such revision must not be prejudicial to the person to whom the original order relates.
This provision limits the Commissioner’s revisionary authority by preventing a suo moto revision from adversely affecting the taxpayer concerned.
Cases pending appeal excluded
The Commissioner cannot exercise the revisionary power in certain circumstances.
Under Section 122A, no order can be revised where an appeal against the order lies before the Commissioner (Appeals) or the Appellate Tribunal and the prescribed time for filing that appeal has not expired.
Similarly, the Commissioner cannot revise an order where the matter is already pending before the Commissioner (Appeals) or has become the subject of an appeal before the Appellate Tribunal.
The restrictions are intended to prevent overlapping revisionary proceedings while an order remains within the statutory appeal process.
120-day deadline for remanded cases
Section 122A also establishes a timeframe where the Commissioner remands an order to a lower authority.
Where an order is sent back for modification, alteration, implementation of directions or de novo proceedings, the lower authority must issue the order giving effect to the Commissioner’s directions within 120 days.
The provision therefore gives Commissioners a supervisory mechanism over orders passed by Inland Revenue officers while establishing safeguards concerning taxpayer prejudice, pending appeals and implementation of remand directions.