The law outlines hearing procedures, temporary tax recovery stays, adjournments, additional grounds of appeal and conditions for admitting new evidence.
ISLAMABAD: The Federal Board of Revenue (FBR) has explained the powers and procedures of the Commissioner (Appeals) under Section 128 of the Income Tax Ordinance, 2001, for Tax Year 2027.
The ordinance, updated up to June 30, 2026, covers the tax year running from July 1, 2026, to June 30, 2027. Section 128 establishes the procedure to be followed by the Commissioner (Appeals) while hearing and deciding income tax appeals.
Under the provision, the Commissioner (Appeals) must notify both the appellant and the Commissioner whose order is being challenged about the date fixed for the appeal hearing.
Temporary stay on tax recovery
Section 128 empowers the Commissioner (Appeals) to temporarily suspend tax recovery where recovery of the tax levied under the ordinance would cause undue hardship to the taxpayer.
After giving the relevant Commissioner an opportunity to be heard, the appellate authority may stay recovery for a period not exceeding 30 days in aggregate.
The law also allows a further stay of 30 days, subject to the condition that the order on the appeal must be passed within that additional period. The relevant Commissioner must again be given an opportunity to present their position before the stay is granted.
Adjournments and additional grounds
The Commissioner (Appeals) may adjourn an appeal hearing from time to time.
The authority may also permit an appellant to introduce a new ground of appeal before the hearing, even if that ground was not included in the original grounds of appeal. Such permission may be granted where the Commissioner (Appeals) is satisfied that the omission was neither wilful nor unreasonable.
Further enquiries and documentary evidence
Before deciding an appeal, the Commissioner (Appeals) may require additional particulars concerning the matters under consideration or direct the Commissioner to conduct a further enquiry.
However, Section 128 places restrictions on the admission of new documentary material or evidence. Such material, which was not produced before the Commissioner at the earlier stage, cannot be admitted unless the appellate authority is satisfied that the appellant was prevented by sufficient cause from submitting it.
The provision sets out the procedural framework for appeal hearings and gives the Commissioner (Appeals) powers to manage proceedings, consider additional grounds and address cases involving hardship from tax recovery, while maintaining conditions for the admission of fresh evidence.