MASTER

CAF-2 TX & CAF-7 CL CAF 2 TAX PRACTICES MASTER SHEETS BY SIR TARIQ TUNIO SHEET
UPDATED
BY SIR TARIQ TUNIO
03322130867 APPEALS & ALTERNATIVE DISPUTE RESOLUTION FOR MARCH 2025 ATTEMPT 12

NO CIR(A) APPELLATE TRIBUNAL INLAND REVENUE (ATIR) REFERENCE TO HIGH COURT

ORDER ASSESSING Amount > COMPOSITION: ATIR shall consist of Chairperson & such other members as may be appointed Aggrieved person/CIR may file reference to HC
HC SCP by the Federal Govt.
TAX / REFUND Rs. 20 M → in prescribed form along with statement of case to HC stating Question
YES ATIR of Law/ Mixed Q of Law & Fact arising out of such order
___MEMBERS__
Following persons shall be eligible to be appointed as member: (1) advocate of HC for not < 15 → Statement shall set out facts of case, determination of ATIR/CIR(A) &
CCIRCUMSTANCES GIVING RISE TO APPEAL BEFORE CIR (A) yrs (2) CA who has practiced professional for 10 yrs (3) CMA who has practiced professional for Q of Law/Mixed Q of Law and Facts arising out of ATIR/CIR order
10 yrs (4) officer of IR of grade 21 or above & (5) officer of IR of grade 20 with 3 or more years’
→ Where HC is satisfied that question of law/ Mixed Q of Law & Facts
service in grade 20.
1) BJAO (Ex-Parte Assessment) 4) Order declaring Person Representative of NR arises out of the order of ATIR/CIR(A), it may proceed to hear the case.
Note1: Chairperson to be appointed from only serial number 1, 2 & 3 for 3-year period
2) Amended Assessment 5) Order Refusing to Rectify Mistake Note2: Maximum age limit 62 for members 1, 2 & 3 and 60 for 4 & 5 [Members/Chairman may
resign or be removed by Fed Govt on recommendation of performance review committee] FEE TIME
3) Order enhancing assessment or reducing 6) Order Holding Person Personally liable for Rs. 50,000/- (All Taxpayers) 30 Days of communication of order
refund withholding of tax or payment of WHT CIRCUMSTANCES GIVING RISE TO APPEAL BEFORE ATIR of CIR(A) / ATIR
Person aggrieved with order of OIR, CIR, CCIR, BOARD may appeal to ATIR against such order. [No fee is paid by CIR] Complete record within 15 days
NOTE: No appeal against assessment order unless taxpayer has paid tax due with return
REQUIREMENTS OF APPEAL SPECIAL BENCHES OF HIGH COURT
Appeal shall be → in prescribed form →verified in prescribed manner →accompanied § Reference to HC shall be heard by Special Bench(s) constituted by Chief Justice,
REQUIREMENTS OF APPEAL by prescribed fee →preferred to ATIR within time limits comprising of not less than two judges of the High Court.
Appeal shall be →in prescribed form →verified in prescribed manner → state precisely grounds of
§ Special Bench shall decide a reference within 6 months from date of its filing.
appeal → accompanied by prescribed fee & → lodged with CIR (A) within prescribed time limits Fee: → Company Rs. 20, 000 → Non-company Rs. 5000
§ HC shall establish a case management system to ensure that sufficient number
Time: Within 30 days of service of order [Condonation of Time Limits: Upon application in
of Special Benches are constituted, so as to ensure that a reference filed under
Whether Addition of New Grounds Possible? Yes. But before hearing of appeal and when CIR(A) is writing, ATIR may admit an appeal after expiration of specified time limit if satisfied that person
this section is decided within the stipulated six months.
appealing was prevented by sufficient cause from filing appeal within that period.]
satisfied that omission of ground was not willful or unreasonable.
Fee: (a) ASSESSMENT → Co Rs. 5000 → Non-Co 2,500 (b) OTHER CASE → Co 5000 → Non-Co 1000 DECISION BY HIGH COURT
STAY ORDER AGAINST RECOVERY OF TAX → HC upon hearing a reference shall decide question of law or mixed question
Time: Within 30 days of (a) date of service of demand notice in assessment/penalty cases, and (b) date Tax Payment Despite Appeal of law and facts raised by the reference and pass judgment specifying grounds on
of service of order in other cases [Condonation of Time Limits: Upon application in writing by appellant, • Filing an appeal does not automatically stay tax recovery. which such judgment is based and the Appellate Tribunal's order 2 [or, as the case
CIR (A) may admit an appeal after expiration of prescribed time limit if satisfied that appellant was • Tax remains payable as per the assessment unless stayed by the Appellate Tribunal. may be, the Commissioner (Appeals)’s order] shall stand modified accordingly.
prevented by sufficient cause from lodging appeal within period.] Stay of Recovery by the Appellate Tribunal
• Upon application, the Appellate Tribunal may stay tax recovery for 90 days. → HC shall send a copy of the judgment under the seal of the High Court to the
Date of Hearing: CIR (A) shall give notice of day fixed for hearing of appeal to appellant & CIR • The Commissioner must be given an opportunity to be heard. Appellate Tribunal or, as the case may be, the Commissioner (Appeals).

Adjournments: CIR (A) may adjourn the hearing of the appeal from time to time • Reasons for granting the stay must be recorded.
Effect of Non-Adherence to Hearing Schedule
Calling Particulars & Causing Inquiry by CIR: Before disposing appeal, CIR (A) may call for such • If the taxpayer does not follow the hearing schedule as set by the Appellate STAY ORDER AGAINST RECOVERY OF TAX
particulars as he may require relating to matters in appeal or cause further enquiry to be made by CIR Tribunal in the Rules, the stay order ceases to have effect.
Tax Payment Despite Reference to High Court
New Documentary Material or Evidence: CIR(A) shall not admit documentary material/evidence not • The Commissioner can then recover the tax.
• Filing a reference to the High Court does not automatically stay tax
Stay Order Beyond Statutory Period
produced before CIR → unless satisfied appellant was prevented by sufficient cause recovery.
• If the appeal is not decided within the statutory period, the stay order remains
Assessment Powers: CIR (A) shall not ↑ tax amount of AO or ↓ refund unless appellant is given • Tax remains payable as per the order of the Appellate Tribunal or
effective until the final decision by the Appellate Tribunal.
Commissioner (Appeals).
reasonable opportunity of showing cause against such increase or decrease
30-Day Relief from Tax Recovery
TYPES OF DECISION TO BE GIVEN BY CIR(A) • The Commissioner cannot recover tax for 30 days after the order of
STAY ORDER AGAINST RECOVERY OF TAX § Decide appeal in 90 days of its filing the Appellate Tribunal or Commissioner (Appeals) is communicated.
→ CIR (A) is of opinion that recovery of tax levied shall cause undue hardship to taxpayer he may stay
§ Pending appeal to be decided in 180 days (condonation for 90 days from law minister) Postponement of Refund in Case of High Court Judgment
recovery of tax (after affording oobh to CIR) for period not exceeding 30 days in aggregate
• If the High Court reduces the tax liability, leading to a refund, the
§ First Hearing, bring ADR to notice of taxpayer
→ After affording oobh to CIR, CIR (A) may stay recovery of tax for further period of 30 days [provided Commissioner may apply within 30 days of receiving the judgment to
that order on appeal shall be passed within the said period of thirty days] § if taxpayer declines ADR option, fix date for hearing(s) & decision in consultation with delay the refund.
taxpayer & CIR • The High Court may authorize postponement until the Supreme Court
decides the appeal.
TYPES OF DECISION TO BE GIVEN BY CIR(A) § ATIR must ensure strict adherence to hearing schedule by taxpayer & CIR
Stay of Tax Recovery by High Court
Assessment Case→ CIR (A) may confirm, modify or annul assessment order § No adjournments except where compelling reasons or payment of cost not < 50K
• The High Court may stay tax recovery upon application, but the
Other Than Assessment Case → CIR (A) may make such order as he thinks fit
§ Decision in Assessment: (a) affirm, modify or annul the assessment order; (b) remand the taxpayer must deposit at least 30% of the determined tax with CIR.
case to CIR for making such enquiry or taking action as directed by ATIR (c) make such order • The stay order granted by HC expires after six months unless the
TIME LIMIT WITHIN WHICH ORDER OF APPEAL TO BE PASSED as ATR may deem fit. reference is decided earlier or the High Court withdraws the stay order
As soon as practicable, CIR (A) shall specify in order amount of tax upheld & serve order on appellant/ earlier.
§ Appeal relates to other than assessment: ATIR may make order to affirm, vary or annul the
CIR → Appeal order shall be passed not later than 120 days from date of filing of appeal [extendable decision, and issue such consequential directions as the case may require.
by 60 days by CIR (A) with reasons in writing] → Period Not Counted – period during which hearing of No reference application filed CIR shall be entertained unless it is accompanied by
appeal is adjourned at request of appellant or is postponed due to any appeal proceedings stay order § ATIR shall not ↑ tax amount of Assessment/Penalty or ↓ refund unless appellant is given a written authorization by the relevant Chief Commissioner
remand alternative dispute resolution proceedings for any other reason reasonable opportunity of showing cause against such ↑↓

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 ALTERNATIVE DISPUTE RESOLUTION

CONDITIONS IN WHICH ADR MAY BE OPTED COMMITTEE COMPOSITION BINDING ON CIR ON WITHDRAWAL OF APPEAL DISSOLUTION OF ADRC AND MATTER TAKEN UP BY APPELLATE
§ Aggrieved person in/con/with any dispute
AUTHORITY
(i) Rtd. judge not below rank of judge of HC (Chairperson of § Decision of Committee shall be binding on CIR when
pertaining to § If Committee fails to decide within period of 60 days, the
ADRC); nominated by Board from panel notified by Law and aggrieved person, being satisfied with decision, has
(a) liability of tax/refund of Rs. 50 M or Justice Division for the purpose withdrawn appeal pending before court of law or any Board shall dissolve Committee by order in writing and the
above against aggrieved person or (ii) CCIR having jurisdiction over the case, and appellate authority in/res/of dispute and has communicated matter shall be decided by the court or appellate authority
(Amount limit does not apply to SOE) where the dispute is pending under litigation.
(iii) person nominated by taxpayer from panel notified by Board order of withdrawal to CIR.
(b) waiver of default surcharge and penalty
(c) any other specific relief required to comprising: § SOE shall file appeal before ATIR/HC/SCP
ALTERNATIVE DISPUTE RESOLUTION § CIR shall also withdraw appeal, if any, pending before any
resolve the dispute
(a) CAs, CMAs and advocates having minimum 10 years’ court or appellate authority in/res/of dispute within 30 days § The Board shall communicate the order of dissolution to the
may apply to Board for appointment of ADRC
experience in field of taxation; of communication of order of withdrawal by aggrieved aggrieved person, court of law or the appellate authority and
for resolution of any hardship or dispute
mentioned in detail in application, except (b) officers of IRS retired in BS 21 or above; or person to CIR. to the Commissioner.
where criminal proceedings have been (c) reputable businessmen nominated by Chambers of § On receipt of the order of dissolution, the court of law or the
initiated. § If order of withdrawal is not communicated to CIR within 60
Commerce and Industry. (Note: Taxpayer shall not appellate authority shall decide the appeal within 90 days of
§ Mandatory for SOE to apply for ADR days of service of decision of Committee upon aggrieved
nominate CA or advocate if CA/ advocate is or has been communication of the said order.
person, decision of Committee shall not be binding on CIR.
§ Application for dispute resolution shall be auditor or authorized representative of taxpayer.)
accompanied by
- initial proposition for resolution of PAYMENT OF TAX RECOVERY STAYED DURING ADR PROCEEDINGS
dispute, including an offer of tax
payment. COMMITTEE WORK AND DECISION The aggrieved person shall make the payment of income tax and Recovery of tax payable by taxpayer in/con/with any dispute for
- Undertaking that decision shall be other taxes and within the time decided by Committee and all which a Committee has been appointed shall be deemed to
binding on taxpayer and that he shall § Committee shall examine the issue and may, if it deems
necessary, decisions and orders made or passed shall stand modified to that have been stayed on constitution of Committee till the final
immediately withdraw pending
litigation/cases on receipt of decisions
extent. decision or dissolution of Committee, whichever is earlier.
o conduct inquiry
o seek expert opinion
APPOINTMENT OF COMMITTEE o direct officer of IR or any other person to conduct audit NOT PRECEDENT & REMUNERATIONS
§ Board examines application and appoints
and shall decide dispute by majority, within 45 days of its The decision by the Committee shall not be cited or taken as a
a committee within 15 days of receipt of
application appointment extendable by another 15 days for reasons to precedent in any other case or in the same case for a different tax
be recorded in writing. year.
§ Board shall communicate order of The Board may prescribe the amount to be paid as remuneration
appointment of Committee to aggrieved for the services of the members of the Committee, other than the
person, court or appellate authority CCIR.
where dispute is pending and to CIR.

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