Taxation System Chapter- 04
The law after the said amendment envisaged two types of Commissioner Inland Revenue’s; one appointed
as Commissioner Inland Revenue u/s 208 and the other being taxation officer who was vested with powers
of Commissioner Inland Revenue u/s 209(2). A taxation officer [defined u/s 2(65)] exercising delegated
powers u/s 210, however, is not covered in this definition as explained in section 211(1). The second part of
definition only covers those officers who enjoy original jurisdiction of a case u/s 209(2) and not as delegates
u/s 210 and thus to be treated as Commissioner Inland Revenue as envisaged in section 209(4).
"CIR (Appeals)" [U/s 2(13A)] means a person appointed as a Commissioner Inland Revenue (Appeals)
u/s 208;
Explanation: In order to cater for the amendments in income tax, sales tax and federal excise laws,
merging all the three into Inland Revenue. Commissioner Inland Revenue Inland Revenue (Appeals) now
hears appeals for income tax, sales tax and federal excise matters. Commissioner Inland Revenue of
Appeals is the first appellate authority. His appointment, functions and jurisdiction are governed u/s 127 to
129, 208 and 209.
The Board's instructions issued u/s 206 or otherwise are not binding on Commissioner Inland Revenue
(Appeals). He is bound to follow the orders of Income Tax Appellate Tribunal (ITAT) and higher courts as
explained in [1996] 73 TAX 132 (Trib)].
Concealment of income [U/s 2(13AA) includes –
a) the suppression of any item of receipt liable to tax in whole or in part, or failure to disclose
income chargeable to tax;
b) claiming any deduction or any expenditure not actually incurred;
c) any act referred to in sub-section (1) of section 111; and
d) claiming of any income or receipt as exempt which is otherwise taxable.
Explanation.
- For removal of doubt it is clarified that none of the aforementioned acts would constitute concealment of
income unless it is proved that taxpayer has knowingly and willfully committed these acts;
“Consumer goods” [U/s 2(13AB)] means goods that are consumed by the end consumer rather than used
in the production of another good;
"Contribution to an Approved Pension Fund" [U/s 2(13B)] means contribution as defined in rule 2(j) of
the Voluntary Pension System Rules, 2005;
Explanation: At the same time a proviso is added that total tax credit available for the contribution made to
approved employment pension or annuity scheme and approved pension fund under Voluntary Pension
System Rules, 2005 should not exceed the limit prescribed or specified in section 63.
"Co-operative society" [U/s 2(14)] means a co-operative society registered under the Co-operative
Societies Act, 1925 or under any other law for the time being in force in Pakistan for the registration of co-
operative societies;
Explanation: This refers to such cooperative societies that are governed under the Cooperative Societies
Act of 1925 or under any other law in force for the registration of cooperative bodies in Pakistan.
The courts have consistently held that cooperative societies are not companies within the ambit of section
16(2)(b) of the Repealed Ordinance - [now section 80(2)(b)].
Section 3(e) of the Corporative Societies Act, 1925 says: "society" means a society registered or deemed to
be registered under the Act."
Section 2(e) of Corporative Societies Act defines "registered" to mean a society registered or deemed to be
registered under this Act."
The following enactments for registration of various cooperative societies and regulation of their affairs
exist:
Cooperative Societies Act, 1925; (ii) Punjab Amendment Act I of 1992; (iii) Co-operative Societies Act,
1912; (iv) Co-operative Societies Rules, 1927; (v) Sindh Co-operative Societies Reforms Rules, 1973;