138. Revision by Commissioner.-

(1)   The Commissioner may, either of his own motion or on an application made by the assessee for revision, call for the record of any proceeding under this Ordinance in which an order has been passed by any authority subordinate to him and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Ordinance, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit:

Provided that no application for revision under sub-section (1) against an order made under section 132 shall lie after the thirtieth day of June, 2001.

(2)   The Commissioner shall not revise any order under sub-section (1) if,

(a)    where an appeal against the order lies to the Appellate Additional Commissioner or to the Appellate Tribunal, the time within which such appeal may be made has not expired, or the assessee has not waived his right of appeal; or

(b)    the order is pending on appeal before the Appellate Additional Commissioner or has been made the subject of an appeal to the Appellate Tribunal; or

(c)    in the case of an application made by the assessee, the application has not been made within ninety days of the date on which such order was communicated to him, unless the Commissioner is satisfied that the assessee was prevented by sufficient cause from making the application within the said period.

(3)   No application for revision shall lie under sub-section (1) unless the tax payable under section 54 has been paid.

(4)   Every application by an assessee under sub-section (1) shall be accompanied by a fee of one thousand rupees or ten per cent of tax levied, whichever is less, provided that where no tax is levied, a fee of one thousand rupees in case of companies and two hundred rupees in case of other assessees shall be paid.

(5)   For the purposes of this section,-

(a)    an order by the Commissioner declining to interfere shall be deemed not to be an order prejudicial to the assessee;

(b)    the Appellate Additional Commissioner shall be deemed to be an authority subordinate to the Central Board of Revenue;

(c)    where, in pursuance of an order by the Central Board of Revenue (Words "Regional Commissioner" substituted by "Central Board of Revenue" by Financial Ordinance, 2001) by under clause (b) of sub-section (1) of section 5, a Commissioner exercises the powers of an Appellate Additional Commissioner, references to "Commissioner" shall be deemed to be references to Regional Commissioner;

(cc)  where, in pursuance of an order by the Commissioner under clause (cc) of sub-section (1) of section 5, an Income Tax Panel exercises the powers of Deputy Commissioner, references to "Commissioner" shall be deemed to be references to "Regional Commissioner";

(ccc) where, in pursuance of an order by the Commissioner under clause (c) of sub-section (1) of section 5, an Inspecting Additional Commissioner exercises the powers of an Deputy Commissioner of Income Tax, references to "Commissioner" shall be deemed to be references to "Regional Commissioner";

(d)    where an order is passed under section 115, references to "Commissioner" shall be deemed to be references to "Regional Commissionceer"; and

(e)    where an order is passed by an Appellate Additional Commissioner on or after the first day of July, 1991, reference to "Commissioner" shall be deemed to be reference to "Regional Commissioner".

(1)   The Federal Government shall appoint an Income Tax Settlement Commission to exercise the powers and discharge the functions conferred on it under this Chapter.

(2)   The Commission shall consist of a Chairman and as many members and associate members as may be necessary and shall function within the Division of the Federal Government dealing with revenue.

(3)   The members of the Commission shall be appointed by the Federal Government from amongst persons of integrity and outstanding ability having special knowledge of, and experience in, matters relating to income tax law and accounts.

(3A) The Federal Government may also appoint from amongst person of integrity and outstanding ability a person with such experience as may be prescribed, being a Chartered Accountant or a Cost and Management Accountant or possessing such qualification as may be prescribed by the Federal Government, as an associate member of the Commission:

Provided that the number of associate members shall not exceed the number of benches of the Commission.

(3B) The terms, conditions and tenure of service of the associate members shall be determined by the Federal Government.

(4)   The Federal Government shall ordinarily appoint the senior most member of the Commission to be the Chairman thereof.

 

In this Chapter, unless the context otherwise requires,-

(i)    "associate member" means an associate member appointed under sub-section (3A) of section 138A.

(ii)   "case" means any proceedings under this Ordinance for the assessment, including additional assessment, appeal or revision in connection with such proceedings, of any person in respect of any year or years, which may be pending before an income tax authority, Income Tax Appellate Tribunal or any court on the date of making the application under sub-section (1) of section 138D:

Provided that where any appeal or application for revision or reference has been filed after the period of limitation and which has not been admitted, such appeal, application for revision or reference shall not be deemed to be a proceeding pending within the meaning of this clause;

(iii)   "Chairman" means the Chairman of the Commission;

(iv)  "member" means a member of the Commission, and includes the Chairman thereof; and

(v)   "Commission" means the Income Tax Settlement Commission appointed under section 138A.

 

(1)   The powers and functions of the Commission may be exercised and discharged by benches constituted from amongst members of the Commission by the Chairman.

(2)   A bench shall ordinarily consist of two members and shall be presided over by the Chairman:

Provided that, where the Chairman is not a member of the bench, the Chairman may authorise any member to discharge the functions of the Chairman :

Provided further that where the applicant makes an application U/s. 138D in writing for settlement of his case with the inclusion of associate member in the bench, the bench shall be so constituted.

(2A) The functions of the Commission shall be-

(a)    to process and decide applications filed by assessees declaring income not hitherto declared;

(b)    to process and decide applications filed by the assessees regarding tax disputes arising out of an assessment order or an order passed by an Appellate Additional Commissioner;

(c)    to process departmental appeals filed before the Income Tax Appellate Tribunal for settlement or withdrawal thereof; and

(d)    any other function specifically assigned by the Federal Government to the Commission:

Provided that this Commission shall not perform its functions referred to in clause (c) after the 30th day of June, 2000.

(3)   Subject to the provisions of this Ordinance, the Commission shall have power to regulate its own procedure, and the procedure of benches in all matters arising out of the discharge of its functions, including the places at which the benches shall hold their sittings.

(4)   If the members of a bench differ in opinion as to the decision to be given on any point,-

(a)    the point shall be decided according to the opinion of the majority, if there is a majority;

(b)    if the members are equally divided and the Chairman of the Commission is not himself a member of the bench, the case shall be referred to the Chairman and the decision of the Commission shall be expressed in terms of the opinion of the Chairman; and

(c)    if the members are equally divided and the Chairman of the Commission is himself a member of the bench, the opinion of the Chairman shall prevail and the decision of the Commission shall be expressed in terms of opinion of the Chairman.

(5)   In addition to powers conferred on the Commission under this Chapter, it shall have all the powers which are vested in an income tax authority under this Ordinance.

 

(1)   An assessee whose case falls under clause (a) of sub-section (2A) of section 138C may, at any stage of his case, make an application in such form and in such manner as may be prescribed, containing full and true disclosure of his income which he may not have disclosed before the assessing officer, the manner in which such income has been derived, the additional amount of income tax payable on such income and such other particulars as may be prescribed, to the Commission to have the case settled and any such application shall be disposed of in the manner provided hereinafter:

Provided that no such application shall be made unless the assessee has filed the return of income which he was or is required to furnish under the Ordinance and the income tax payable on the basis of such application exceeds twenty-five thousand rupees:

(1A) An assessee whose case falls under clause (b) of sub-section (2A) of section 138C may make an application in such form and in such manner as may be prescribed against an assessment order or an order passed by an appellate authority, not being the Income Tax Appellate Tribunal or any court of law, to the Commission, to have the case settled and any such application shall be disposed of in the manner provided hereinafter:

Provided that the tax payable under such order exceeds twenty-five thousand rupees.

(2)   Every application made under sub-section (1) shall be accompanied by such fees as may be prescribed by the Commission.

(3)   An assessee once having made an application under sub-section (1) shall not be entitled to withdraw it.

(4)   No application under this section shall be made after the 30th day of June, 2000.

(1)   The Commission may, before disposing of any application filed under subsection (1) or sub-section (1A) of section 138D, call for such particulars as it may require in respect of the case in the application brought before it or cause further enquiries to be made by the Commissioner and on the basis of his report and having regard to the nature and circumstances of the case, the Commission may, by order, allow the application to be proceeded with or reject the application:

Provided that an application shall not be rejected under this subsection unless an opportunity has been given to the applicant of being heard.

(2)   Notwithstanding anything contained in sub-section (1), an application shall not be proceeded with under that sub-section if the Commissioner objects to such application on the ground that concealment of particulars of income on the part of the applicant or perpetration of fraud by him for evading any tax under this Ordinance, has been established or is likely to be established by any income tax authority:

Provided that where the Commission does not agree with the objections raised by the Commissioner, it may, after giving the Commissioner an opportunity of being heard, accept the application for being proceeded with under sub-section (1).

(3)   Where an application is allowed to be proceeded with under subsection (1), the Commission may call for the relevant records from the Commissioner and after examination of such records, if the Commission is of the opinion that any further inquiry in the matter is necessary, it may direct the Commissioner to make or cause to be made such further enquiry and furnish a report on the matters within such time as it may fix.

(4)   After examination of the records and the report of the Commissioner received under sub-section (1) or sub-section (3), and after giving an opportunity to the applicant and to the Commissioner to be heard, in person or through their authorised representatives and after examining such further evidence as may be placed before it or obtained by it, the Commission may, in accordance with the provisions of this Ordinance, pass such order as it thinks fit on the matters enumerated in the application and reported to it by the Commissioner under sub-section (1) or sub-section (3).

(5)   Every order passed under sub-section (4) shall provide for the terms of settlement including any demand of tax, penalty or interest, the manner in which any sum due under the settlement shall be paid and all other matters to make the settlement effective and shall also provide that the settlement shall be void if it is subsequently found by the Commission that it has been obtained by fraud or misrepresentation.

(6)   Where a settlement becomes void the proceedings with respect to the matters relating to the settlement, shall be revived from the stage at which the application was allowed except a matter pending in appeal or revision before making an application under sub-section (1) of section 138D, to be proceeded with and the concerned income tax authority may, notwithstanding anything contained in any other provision of this Ordinance, complete such proceedings within two years from the end of the financial year in which the settlement became void.

(7)   The Commission may, if it is of the opinion that any person who made an application under section 138D does not cooperate with the Commission in the proceedings before it, send the case back to the assessing officer, if such case was pending for assessment at the time application under that section was made, who shall thereupon dispose of the case in accordance with the provisions of this Ordinance as if no application under section 138D had been made.

Section 138EE omitted which previously reads as follows:

138EE. Disposal of second appeal cases.-

(1)      The Commission may, by an order, direct the Commissioner to withdraw an appeal preferred by him before the Income Tax Appellate Tribunal.

(2)      The Commission may, before making an order under sub-section (1), call for such particulars, records or report as it may require or cause further enquires to be made by the Commissioner.

(3)      No order under sub-section (1), shall be made unless the Commissioner has been given a reasonable opportunity of being heard.

 

Any sum specified in an order of settlement passed under sub-section (4) of section 138E shall, subject to such conditions as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of this Ordinance by the Deputy Commissioner having jurisdiction in the case.

Where-

(i)     an order of the settlement passed under section 138E provides for the imposition of a penalty on the person on the ground of concealment of particulars of his income; or

(ii)    a person is convicted of any offence under Chapter XII in pursuance of settlement of a case; or

(iii)   a case is sent back to the Deputy Commissioner by the Commission for assessment or re-assessment for any reason or where the settlement becomes void under this Chapter, any fresh application for settlement shall not be admissible.

Every order of the Commission passed under section 138E shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter be re-opened in any proceeding under this Ordinance or under any law for the time being in force.

If Commission is, for reasons to be recorded in writing, of the opinion that for the proper disposal of the case pending before it, it is essential to reopen any proceedings connected with the case but which have been completed under this Ordinance by any income tax authority before the application under section 138D was made, it may, with the concurrence of the applicant, reopen such proceedings and pass such order thereon as it thinks fit, as if the case in relation to which the application for settlement had been made by the applicant under that section covered such proceedings as well:

Provided that no proceedings shall be re-opened by the Commission under this section if the period between the end of the assessment year to which such proceedings relate and the date of application for settlement under section 138D exceeds five years.

Any proceedings before the Commission shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 and for the purposes of section 196 of the Pakistan Penal Code (Act XLV of 1860).

The Commission shall communicate its order to the applicant, the Deputy Commissioner and the Commissioner.

(1)   The Federal Government shall appoint a Directorate General of Inspection to exercise the powers and discharge the functions conferred on it under this Chapter.

(2)   The Directorate General shall consist of a Director-General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors, Extra-Assistant Directors and Inspectors, as the Director General may deem necessary to be appointed from amongst the officers of Income Tax Group.

 

In this Chapter, unless the context otherwise requires,-

(a)    "Director-General" means a person appointed to be the Director-General of Inspection;

(b)    "Director" means a person appointed to be a Director of Inspection;

(c)    "Additional Director" means a person appointed to be an Additional Director of Inspection;

(d)    "Deputy Director" means a person appointed to be a Deputy Director of Inspection and includes an Assistant Director of Inspection and an Extra Assistant Director of Inspection; and

(e)    "Inspector" means a person appointed to be an Inspector of Inspection.

(1)   There shall be the following classes of inspection authorities for the purposes of this Ordinance, namely: -

(a)    Director-General of Inspection;

(b)    Directors of Inspection;

(c)    Additional Directors of Inspection;

(d)    Deputy Directors of Inspection; and

(e)    Inspectors of Inspection.

(2)   The Directors of Inspection, Additional Directors of Inspection, Deputy Directors of Inspection and Inspectors of Inspection shall be subordinate to the Director-General of Inspection.

(3)   Additional Directors of Inspection, Deputy Directors of Inspection and Inspectors of Inspection shall be subordinate to the Director of Inspection within whose jurisdiction they perform their functions.

(4)   Deputy Directors of Inspection and Inspectors of Inspection shall be subordinate to the Additional Director of Inspection within whose jurisdiction they perform their functions.

(5)   Inspectors of Inspection shall be subordinate to the Deputy Director of Inspection within whose jurisdiction they perform their functions.

(1)   Subject to the provisions of this Chapter,-

(a)    the Directors of Inspection, Additional Directors of Inspection, Deputy Directors of Inspection and Inspectors of Inspection shall perform their functions in respect of such persons or classes of persons or such areas as may be assigned to them by the Director General;

(b)    the Additional Directors of Inspection, Deputy Directors of Inspection and Inspectors of Inspection shall perform their functions in respect of such persons or classes of persons or such areas as may be assigned to them by the Director of Inspection.

(2)   The Director-General or the Director may assign any function or functions in respect of any area, office or offices located within an area, case, class of cases, person or classes of persons, to any inspection authority working under his control.

 

(1)   The functions of the Directorate-General of Inspection shall be-

(a)    to carry out inspections of income tax cases and offices;

(b)    to investigate or cause investigation to be carried out in respect of-

(i)     cases involving leakage of revenue or evasion of taxes; and

(ii)    officers and staff of the income tax offices allegedly involved in corruption and malpractice and recommend to competent authority appropriate disciplinary action;

(c)    to carry out audit of cases or offices involving income tax revenues;

(d)    to recommend the Central Board of Revenue in matters of tax policy, tax administration and tax operations;

(e)    to furnish an annual report about the working of Income Tax Offices to the Central Board of Revenue by the thirty-first day of December, following the end of the financial year to which it relates; and

(f)    any other work or function that may be assigned to it by the Federal Government.

(2)   In discharge of its functions under sub-section (1), the Directorate-General shall have the powers specified in section 148.