Karachi, August 26, 2024 – The Pakistan Tax Bar Association (PTBA) has proposed several measures to enhance the operational efficiency of the Appellate Tribunal Inland Revenue (ATIR).
In a letter addressed to the ATIR Chairman, the PTBA highlighted significant challenges faced by the tribunal and suggested solutions to streamline its operations.
The PTBA expressed concerns over the insufficient number of benches available to handle the daily caseload at the ATIR. According to the association, on average, about 100 cases are fixed for hearing each day, a volume that far exceeds the tribunal’s capacity. “In this scenario, we are afraid that it is impossible to provide a patient hearing and fair trial to taxpayers, which is their fundamental right under the Constitution,” the PTBA stated.
The letter pointed out that due to the overwhelming number of cases, tribunal benches are often forced to operate beyond regular office hours. To address these issues, the PTBA put forth several recommendations for consideration by the ATIR Chairman:
1. Fixation of Cases According to Bench Capacity: The PTBA suggested that the number of cases scheduled for hearing should align with the strength and capacity of the available benches and their members. This would ensure that each case receives the attention it deserves without overburdening the tribunal.
2. Disposal and Grant of Stay Applications: The PTBA recommended that stay applications should be disposed of without a hearing and granted until the disposition of the appeal. This measure aims to reduce the burden on the benches and expedite the resolution process.
The PTBA also raised concerns about the current practice of requesting reports from the department at every hearing. The association argued that this approach is not an appropriate method for case disposal. “How can the department revisit a case without any direction from the court?” the PTBA questioned, noting that this practice often leads to unnecessary delays in case resolution.
The PTBA observed that these reports frequently reiterate the original order’s findings, resulting in no substantial change or new insight. “It is totally illogical and difficult to understand how an officer could provide a different opinion from what has already been stated in the original order,” the association said.
To address this, the PTBA suggested that benches should dispose of cases based on their merits. If verification is required, benches could instruct the Registrar of ATIR to verify the documents submitted by taxpayers and provide a report within a specified timeframe. “This will also reduce the burden of cases on benches and ensure speedy dispensation of justice to appellants,” the PTBA explained.
Another critical issue highlighted by the PTBA is the insufficient notice period provided to taxpayers. In many cases, notices are received just a day before the hearing, leaving inadequate time for preparation. This situation often leads to adjournments and delays in proceedings. The PTBA emphasized the need for timely delivery of notices to prevent such disruptions.
Moreover, the PTBA noted delays in the service of orders across the country, particularly in cases where notices under Section 138 of the Income Tax Ordinance have already been issued. This delay can cause significant complications and exacerbate the already strained operations of the ATIR.
