Law: Income Tax Ordinance, 2001

Section: 111(1)(b),122,122(1),209(1), 209, 208, 207, 133, 111

1. Case Background:o The Commissioner Inland Revenue (BTB), Rawalpindi initiated proceedings under Section 122 of the Income Tax Ordinance for Tax Years 2010, 2011, and 2012.o Undeclared balances were added under Section 111(1)(b), and the respondent's tax assessments were deemed finalized on 31.12.2014 and 20.01.2015.o The respondent, Masood-ul-Hassan (Proprietor of Prism Estate and Builders), challenged the assessment before the Commissioner Inland Revenue (Appeals), Rawalpindi, which upheld the tax demand.o Appeals were then filed before the Appellate Tribunal Inland Revenue (ATIR), Islamabad, which set aside the tax assessments citing a lack of jurisdiction by the Commissioner BTB.2. Decision by the High Court:o The High Court overturned the ATIR decision, ruling that: The Chief Commissioner had transferred jurisdiction to the Commissioner Inland Revenue (BTB), Rawalpindi, through an order dated 20.08.2014 under Section 209(1) of the Income Tax Ordinance. The ATIR ignored this order and failed to properly assess jurisdiction. The respondent did not challenge jurisdiction during initial proceedings, which, as per legal precedent (2003 SCMR 686), bars it from raising the issue at the appellate stage.o The judgment states that the Appellate Tribunal misread and omitted relevant facts, making its decision legally unsustainable.3. Outcome:o The High Court ruled in favor of the Commissioner Inland Revenue.o The case was remanded back, confirming that the tax assessments were lawfully conducted under the Commissioner BTB’s jurisdiction.Implications:• The ruling reinforces the authority of the Chief Commissioner to assign jurisdiction under Section 209(1).• Failure to challenge jurisdiction at the first instance results in waiver of that objection in appeals.• The Appellate Tribunal must ensure complete assessment of facts to avoid decisions based on misreading of records.JUDGMENT:JAWAD HASSAN, JUSTICE:---.---These Reference Applications No.01 of 2019, 02 of 2019 and 04 of 2019 under Section 133 of the Income Tax Ordinance, 2001 (the “Ordinance”) have been filed by the Applicant, being dissatisfied with the order passed by the Appellate Tribunal Inland…