Law: Income Tax Ordinance, 2001

Section: 133, 126A

Income Tax Ordinance (XLIX of 2001)--- ----Ss. 133 & 126A [as omitted through Finance Act, 2025]---Order passed by Commissioner Inland Revenue (Appeals), assailing of---Forum---Whether Appellate Tribunal Inland Revenue or High Court?---Forum of appeal, availability of---Retrospective effect---Procedural and substantive laws---Distinction--Amendments introduced in S. 133 of the Income Tax Ordinance, 2001 via the Amendment Act of 2024 and the Finance Act, 2025 are procedural in nature and do not define or alter substantive rights or liabilities of the parties---These amendments pertain solely to the forum and mechanism available for adjudication, thereby falling within the realm of procedural law---It is a well-established principle of statutory interpretation that procedural laws operate retrospectively unless expressly stated otherwise---The rationale underlying said principle is that no party has a vested right in procedural mechanisms---Where a legislative change merely affects the procedure or remedies and does not abridge substantive rights, it is applicable to all pending and future proceedings---Distinction must be drawn between substantive and procedural law---While substantive law establishes rights, duties, and liabilities, procedural law concerns the manner and forum in which those rights are enforced---Where there is a right, there is a remedy and the route to remedy is procedural---Therefore, amendments that merely modify the forum of appeal or procedure for redressal, and do not extinguish or curtail any vested or accrued rights, are not caught within the prohibition against retrospective operation---As no party has an inalienable right to a particular forum, such changes are generally presumed to apply to pending proceedings and "forum non conveniens" considerations do not override legislative intent in procedural changes--Indeed the amendment through Finance Act, 2025 will not affect those reference applications, which are already decided by the High Court against the orders of Commissioner (Appeals) or appeals are decided by Tribunal directly against the orders for amendment of assessment orders, as same will be governed by the…