Section 129 allows a 60-day extension for recorded reasons and empowers the Commissioner (Appeals) to confirm, modify or annul assessment orders.
ISLAMABAD: The Federal Board of Revenue (FBR) has outlined a 120-day time limit for the Commissioner (Appeals) to decide income tax appeals under Section 129 of the Income Tax Ordinance, 2001, for Tax Year 2027.
The ordinance, updated up to June 30, 2026, applies to the tax year from July 1, 2026, to June 30, 2027. Section 129 defines the authority of the Commissioner (Appeals) in deciding appeals filed under Section 127.
Under the law, the Commissioner (Appeals) may confirm, modify or annul an assessment order after examining the evidence considered necessary or directing further enquiries into matters arising from the appeal. In other cases, the authority may issue any order considered appropriate.
Opportunity required before adverse changes
Section 129 prohibits the Commissioner (Appeals) from increasing an assessment or reducing a refund without giving the appellant a reasonable opportunity to show cause against the proposed change.
The provision also addresses assessments involving an association of persons (AOP). Where an appeal results in a change to an AOP’s assessment, or a fresh assessment is ordered, the Commissioner (Appeals) may authorise corresponding amendments to assessments of the AOP’s members. In such cases, the time limit under Section 122(2) does not apply to the amended assessment.
120 days to decide an appeal
The Commissioner (Appeals) must, as soon as practicable after deciding an appeal, specify in the order the amount of tax upheld and serve the order on both the appellant and the Commissioner.
The order must be passed within 120 days from the date the appeal is filed. The law permits an extension of up to 60 additional days, provided the Commissioner (Appeals) records the reasons for the extension in writing.
However, certain periods are excluded when calculating these deadlines. These include periods when a hearing is adjourned at the appellant’s request or postponed because of other appeals or proceedings, a stay order, remand, alternative dispute resolution proceedings or any other reason specified under the provision.
The statutory framework establishes a deadline for disposing of tax appeals while allowing additional time in defined circumstances and requiring procedural safeguards when an appellant’s tax assessment or refund position may be adversely affected.