| Citation(s) |
|---|
| 2025 SLG 4065 2025 SLD 4065 = 2025 SCP 319 = 2026 PTCL 12 = 2026 SCMR 69 = 2026 PTD 90 = (2026) 133 TAX 297 |
Civil Petition No. 339-L of 2023 [Against the order dated 21.11.2022 of the Lahore High Court, Lahore passed in I.T.R No.71408 of 2022]
Mr. Justice Yahya Afridi, CJ Mr. Justice Muhammad Shafi Siddiqui Mr. Justice Miangul Hassan Aurangzeb
For the Petitioner: Mr. Ahmed Pervaiz, ASC. [Via Video-link from Lahore] Mr. Arfat Rasool, Secretary Legal, FBR. For the
Respondent: Nemo. Date of Hearing: 01.09.2025.
Commissioner Inland Revenue (Legal Zone), Large Taxpayers’ Office, Lahore. .... Petitioner
VERSUS
M/s Seven Star Sugar Mills (Private) Limited, Karachi. … Respondent
Law: Income Tax Ordinance, 2001
Section: 129(1)(a),122(5A),133(1)
Law: Finance Act, 1951
Section:
Summary:
The court examined whether under section 129(1)(a) of the Income Tax Ordinance, 2001, the Commissioner Inland Revenue Appeals has the power to remand a case for fresh assessment. It held that the 2005 amendment to section 129 removed the explicit power to remand, restricting the Commissioner Appeals to confirm, modify, or annul assessments only. Following this, remand is outside the jurisdiction of the Commissioner Appeals, and the case must be decided on the merits. The petition was allowed, setting aside the prior judgment that permitted remand.
Core Points:
- The Commissioner Appeals’ powers under section 129(1)(a) were amended by the Finance Act, 2005, removing the power to remand cases for fresh assessments.
- Pre-2005, the Commissioner Appeals could confirm, modify, annul, or remand assessment orders. Post-2005, only confirm, modify, or annul.
- FBR Circular No. 1 of 2005 clarified that Commissioner Appeals cannot set aside and remand assessments, aiming to prevent unnecessary revenue deferment.
- The court emphasized strict, literal interpretation of taxing statutes and rejected any construction beyond the clear statutory language.
- The case was remanded to the Commissioner Appeals with direction to decide within the amended powers under section 129(1)(a).
Law and Section:
| Law | Section | Citation/Reference |
|---|---|---|
| Income Tax Ordinance | 129(1)(a) | Powers of Commissioner Appeals (as amended) |
| Income Tax Ordinance | 122(5A) | Amendment of assessment order |
| Income Tax Ordinance | 133(1) | Tax Reference provision |
| Finance Act | 2005 | Amendment to section 129 |
| FBR Circular | 1 of 2005 | Clarification on setting aside assessment |
JUDGMENT
Muhammad Shafi Siddiqui, J. The question of law proposed by the petitioner’s counsel is whether the provisions of section 129(1)(a) of the Income Tax Ordinance, 2001 (hereinafter referred to as ‘the Ordinance’) permits the Commissioner Inland Revenue Appeals (hereinafter referred to as ‘the Commissioner Appeals’) to remand the case, as the mandate of the Commissioner Appeals itself is limited to the extent provided in the aforesaid provisions by way of an amendment brought earlier.