Tax Book 2023

Returns and Assessments Chapter- 17

provisional assessment order for the last completed tax year regarding concealed asset of the

person.

Where an offshore asset of any person, not declared earlier, is discovered by the CIR or any

department or agency of the Federal Government or a Provincial Government, the Commissioner

may at any time before issuing any assessment order u/s 121 or amended assessment order u/s 122,

issue to the person a provisional assessment order or provisional amended assessment order, as the

case may be, for the last completed tax year of the person taking into account the offshore asset

discovered.

The Commissioner Inland Revenue shall finalise a provisional assessment order as soon as

practicable.

17. Assessment giving effect to an order [Section 124]

The CIR or CIR (appeals) must give the appeal effect as per the following:

Type of order Time limitation for effect of appellate body order

For direct relief case u/s 124(4):

Within two months from the end of the date the

CIR is served with the appellate order.

For case of specific direction u/s 124(1): Within two years from the end of the financial

year in which the order is received by the CIR

For case set aside u/s 124(2):

Within one year from the end of the financial year

in which the order is received by the CIR or authority

For case of assessment after a decision

by any Civil Court in Pakistan u/s 125:

Within one year from the end of the financial year

in which the decision in brought to the notice of CIR.

18. Powers of tax authorities to modify orders, etc. [Section 124A]

 Where a question of law has been decided by a High Court or the Appellate Tribunal on or after

1.7-2002, the CIR may, notwithstanding that he has preferred an appeal against the decision of

the High Court or made an application for reference against the order of the Appellate Tribunal,

follow the said decision related to the said question of law arising until the decision of the High

Court or of the Appellate Tribunal is reversed or modified.

 In case the decision of High Court or the Appellate Tribunal is reversed or modified, the CIR

may, notwithstanding the expiry of period of limitation prescribed for making any assessment or

order, within a period of one year from the date of receipt of decision, modify the assessment or

order in which the said decision was applied.

19. Evidence of assessment [Section 126]

 The production of an assessment order or a certified copy of an assessment order shall be

conclusive evidence of the due making of the assessment and, except in proceedings of

appeal, that the amount and all particulars of the assessment are correct.

 Any order of assessment or other document purporting to be made, issued, or executed may

not be -

(a) quashed or deemed to be void or voidable for want of form; or

(b) affected by season of any mistake, defect, or omission therein,

if it is, in substance and effect, in conformity with this Ordinance.

20. Assessment of persons about to leave Pakistan [Section 145 and Rule 221, 222 and 223]

 Where any person is likely to leave Pakistan during the tax year or shortly after its expiry with

no intention of returning to Pakistan, he shall give to the CIR a notice for this not less than 15

days before the date of his departure.

 The above notice shall be accompanied by a return or returns of taxable income in respect of

the period commencing from the end of the latest tax year and ending on the said date or