Aiou solved assignment 2 code 456 spring 2017 for business taxation. This is completely aiou solved assignment 2 code 456 spring 2017. Again as previous, we this assignment prepared and solved by the tax dealing expert advocate. So you can write this aiou solved assignment 2 code 456 spring 2017 for the subject business taxation without any ambiguity.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 BUSINESS TAXATION.
Q.1 TO IMPLEMENT THE INCOME TAX ORDINANCE 2001, THE FEDERAL GOVT. HAS ESTABLISHED THE INSTITUTION OF THE FEDERAL BOARD OF REVENUE (FBR). THE FBR HAS APPOINTED OFFICERS TO CARRY OUT THE IMPLEMENTATION ON THE PROVISIONS OF THE INCOME TAX ORDINANCE 2001. THE COMMISSIONER INLAND REVENUE (CIR) IS THE KEY OFFICER IN AN FBR OFFICE. EXPLAIN IN DETAIL THE POWERS AND FUNCTIONS OF THE CIR AS PROVIDED IN THE INCOME TAX ORDINANCE 2001. (20)
Answer: The Federal Board of Revenue (FBR) on Thursday delegated powers and functions of the board under taxation laws administered by the FBR to the Member. Member (Inland Revenue-Operations). The Job description and functions of the Member is as follow:
1. Achieve revenue targets and manage operations relating to Inland Revenue;
2. Supervise revenue collection by Chief Commissioners of all RTOs / LTUs who shall report to him;
3. Monitor enforcement and Withholding Tax activities relating to Inland Revenue;
4. Law & Procedure except matters falling in the purview of Member (IR-Policy);
5. Liaise with the Member Customs for WI-IT on imports;
6. Exercise powers and perform functions of the Board under the provisions of Sales Tax Act 1990, Income lax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules 2002, Federal Excise Rules 2005 and Sales Tax Rules 2006, as delegated by the Board:
7. Perform any other duty or task assigned by the Chairman, FBR.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 ABOUT MEMBER INLAND REVENUE.
Member (Inland Revenue-Operations) shall exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990; Sections 2ESAA(f)], 2(9), 6(2), BA, 10(3), 13(2)(b), 21(1), 21(4), 22(1A), 26(1), 27(a), 31, 32(1)(a) &(b), 37A, 37B(13), 37!, 38(1), 388(3), 40B, 40C, 45A, 47A, 47A(4), 48(1A), 55, 62 and 74.
Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001; Sections 26(2), 28(3) to the extent of granting approvals in the light of criteria of leasing companies, etc., 74(11), 80(2)(b)(vi), 134A(2), 134A(4), 165(3), 180, 181A, 202, 209(1) except for CIR (A), 209(2), 212 to the extent of powers conferred on him by this distribution/delegation of powers order, 214A except for appellate body and 217(1) in consultation with Member (IT).
Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005; Sections 16(3), 22(1), 23(1), 29(3), 35(1), 38(1) to (4), 43, 45(2), 45(3), 45A and 46(1). Exercise powers and perform functions of the Board under the following provisions of Income Tax Rules,
2002; Rules 90, 94, 109, 220B and 231C. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules,
2005; Rules 2(b), 2(g), 3(5), 5(1), 5(4), 25, 26, 28, 31(1), 33(4) in consultation with Member (IR-Policy), 36(4), 40A(3), 41A(2), 53, 54, 55, 56, 57, 58, 64, 74(3), 76, 77 and 78.
Exercise powers and perform functions of the Board under the following provisions of Sales Tax Rules,
2006; Rules 5, 6, 10, 12, 27, 28, 30, 41, 44, 52, 62, 64, 65, 66, 67, 68, 69 and 150F
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2016 HOW TO APPEAL IN THE COURT
Q.2 THE FBR CAN SEND A NOTICE TO ANY PERSON FOR THE PAYMENT OF TAX. HOWEVER, THAT PERSON WILL HAVE A RIGHT TO THE COURT FOR ANY UNJUSTIFIED TAX DEMAND FROM THE FBR. UNDER THE PROVISIONS OF THE INCOME TAX ORDINANCE 2001, HOW WILL YOU GUIDE SUCH A PERSON IN MAKING APPEALS RELATED TO THE TAX MATTERS TO THE CONCERNED APPELLATE FORUMS? (20)
WHAT IS AN APPEAL:-
According to Black’s Law Dictionary, an appeal is a “proceeding undertaken to have a decision reconsidered by bringing it to a higher authority, especially the submission of a lower court’s decision to a higher court, for review and possible reversal”. The party complaining is called the appellant and the defending party a respondent. There is no inherent right of appeal. If a right of appeal is not given by the statute, no appeal would lie. This right must be given by express enactment. It cannot be implied.
INCOME TAX APPELLATE AUTHORITIES:-
The Income Tax Ordinance, 2001 lays down the scheme of appeals etc. at various levels. If a tax payer is aggrieved with an order of the Income Tax Authorities, he is entitled to seek remedy in the form of appeal or reference. Under this Ordinance, the following are the appellate authorities:
(1) Commissioner (Appeals);
(2) Income Tax Appellate Tribunal;
(3) High Court; and
(4) Supreme Court of Pakistan.
Sections 127 to 134 of the Income Tax Ordinance, 2001 specifically grant the right of appeal and revision. Against the order of the Commissioner, the tax payer can go into appeal to the Commissioner (Appeals). The order of the Commissioner (Appeals) is further appeal able. The party aggrieved, whether a tax payer or the Income Tax Department, may appeal against his order to the Appellate Tribunal. An appeal against the order of the Appellate Tribunal lies to High Court but only on point of law. The order of the High Court can be challenged in the Supreme Court which is the final authority in this chain.
APPEAL TO THE COMMISSIONER (APPEALS):
An appeal against the following orders of the Commissioner of Income Tax or a taxation officer mentioned in section 127 lies to Commissioner (Appeals):
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 PROCEDURE FOR FILING AN APPEAL
PROCEDURE FOR FILING AN APPEAL:
1. No appeal can be filed unless the taxpayer has paid the amount of tax due on the basis of return
2. Appeal should be: i) in the prescribed manner; ii) verified in the prescribed manner; iii) state precisely the grounds upon which the appeal is made; iv) be accompanied by prescribed fee; and v) be lodged with the Commissioner(Appeals) within the time set out for it.
3. The prescribed fee against an assessment shall be lesser of one thousand rupees or ten percent of the tax assess; or
4. In other case: i. Where the appellant is a company, one thousand rupees; or ii. Where the appellant is not a company, two hundred rupees Time limit for filing an appeal: The appeal shall be filed within 30 days of the following dates:
i. Where the appeal relates to any assessment or penalty, the date of service of the demand notice relating to the said assessment or penalty order; or
ii. In any other case, the date on which intimation of the order to be appealed against is served. Extension of time for filing an appeal: The appellate authority is empowered to admit an appeal after the expiry of above mentioned period if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within that period.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 PROCEDURE IN APPEAL
PROCEDURE IN APPEAL:-
The Commissioner (Appeals) :
1. Shall give notice of the day fixed for hearing of the appeal to the appellant as well as to the Commissioner against whose order the appeal has been made.
2. May adjourn the hearing of appeal from time to time.
3. May allow the appellant to file new grounds of appeal (other than those already filed) if he is satisfied that omission of the ground of appeal was not willful or unreasonable.
4. Can call for any particulars required for deciding the issue raised in the appeal and can order the Commissioner of Income Tax to make further enquiry.
5. Shall not admit any documentary material or evidence which was not produced before the assessing officer, unless he is satisfied that the appellant was prevented by sufficient cause from producing such material or evidence before the assessing officer.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 DECISION IN APPEAL
DECISION IN APPEAL:-
While disposing of an appeal lodged under section 127, the Commissioner (Appeals):
A. Incase of an appeal against an assessment order may:
i. Set aside assessment order and d rect that a new assessment order be made; or
ii. Confirm, modify or annual the assessment order; or
B. In any other case, make such order as he may think fit.
C. Shall not increase the amount of an assessment order or decrease the amount of any refund unless the appellant has been given a reasonable opportunity of showing cause against such increase or decrease.
D. Where, as a result of appeal, any change is made in the assessment or new assessment is made in regard to AOP, he may authorize amendment accordingly within the time limit.
E. Shall serve his order on the appellant and the Commissioner as soon as possible.
F. If he does not make an order on an appeal before expiry of three months from the end of the month in which the appeal was lodged, (excluding the period the appeal is adjourned on the request of the appellant), the relief sought by the appellant in the appeal shall be treated to have been given. This provision of shall not apply unless a notice by the appellant stating that no such order has been made is personally served by the appellant on the Commissioner (Appeals) not less than thirty days before the expiration of the period of three months.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 APPOINTMENT OF THE APPELLATE TRIBUNAL
APPOINTMENT OF THE APPELLATE TRIBUNAL:-
The Appellate Tribunal is constituted by the Federal Govt. and functions under the Ministry of Law and Justice. It consists of two classes of Members,
(i) Judicial Members, and
(ii) Accountant Members. It is headed by a chairperson.
QUALIFICATIONS OF MEMBERS:-
A Judicial member shall be a person who:
a. Has exercised the powers of a District Judge and is qualified to be a Judge of a High Court; or
b. Is or has been an advocate of a High Court and is qualified to be Judge of the High Court. An Accountant Member may be a person who is an officer of the Income Tax Group equivalent in rank to that of a Regional Commissioner. Federal Govt. appoints a member of the Appellate Tribunal as Chairperson of the Tribunal and, except in special circumstances, the person appointed should be a judicial member. The Appellate Tribunal is empowered to regulate its own procedure and the procedure of its Benches in all matters arising out of the discharge of its functions including the places at which these Benches shall hold their sittings. A Bench shall consist of at least two members. If Benches differ on any point, the same will be decided according to the opinion of the majority. In case the members are equally divided on a point, it shall be referred to the Chairperson.
APPEAL TO THE APPELLATE TRIBUNAL:-
PROCEDURE FOR FILING AN APPEAL:
Where the tax payer or the Commissioner objects to an order passed by the Commissioner (Appeals), they can file an appeal against the order of the Appellate Tribunal. An appeal shall be:
(a) in the prescribed form;
(b) verified in the prescribed manner;
(c) accompanied by the prescribed fee (except in case of Commissioner); and
(d) filed within 60 days from the date of the communication of impugned order to the party concerned.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 FEE PAYABLE FOR FILING AN APPEAL
FEE PAYABLE FOR FILING AN APPEAL:-
The appeal should be accompanied by a fee of Rs. 2500 in the case of companies and Rs. 500 in other cases. The Commissioner is not required to pay any appeal fee. Extension of time limit for filing an appeal : The Appellate Tribunal is empowered to admit an appeal after the specified time if it is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within that period.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 INCOME TAX PAYABLE
INCOME TAX PAYABLE UNLESS STAYED:-Unless the recovery of income tax has been stayed by the Appellate Tribunal, it shall be payable in accordance with the assessment made in the case. Where the recovery has been stayed by the order of Appellate Tribun I it shall cease to have effect on the expiry of three months following date on which it is made, unless the appeal is decided or such order is withdrawn.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 DISPOSAL OF APPEALS
DISPOSAL OF APPEALS BY THE APPELLATE TRIBUNAL:-
CALL FOR PARTICULARS: The Appellate Tribunal, before disposing an appeal, may call for required particulars in respect of matters in appeal or cause further enquiry to be made by the Commissioner.
DISMISSAL OF APPEAL IN DEFAULT:- Opportunity of being heard will be provided to the parties and in case any party does not appear on the date of hearing, the appeal may be dismissed or the Appellate Tribunal may proceed ex•parte. In an appeal relating to an assessment order, the Appellate Tribunal may:
(a) Affirm modify or annul the assessment order; or
(b) Set it aside and issue direction for making a new assessment;
(c) Remand the case to the Comm;ssioner/Commissioner (Appeals) for making enquiry or taking such action as it may direct. Parties to be heard The Appellate Tribunal shall not increase the amount of any assessment or penalty or decrease the amount of any refund unless the taxpayer has been given a reasonable opportunity of showing cause against such increase or decrease, as the case may be. Where, as a result of appeal, any change is made in the assessment or new assessment is made in regard to AOP, the Appellate Tribunal may authorize amendments accordingly within the specified time limit
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 FINALITY OF ORDER
FINALITY OF ORDER:
The order of the Appellate Tribunal shall be communicated to the taxpayer and the Commissioner and except as provided in section 133, its decision in an appeal shall be final.
REFERENCE TO THE HIGH COURT:-
PROCEDURE IN APPELLATE TRIBUNAL:-
If the tax payer or the Commissioner is aggrieved by the order of the Appellate Tribunal, they can require the Appellate Tribunal, through an application in the prescribed form and accompanied by the prescribed documents, to refer any question of law arising out of such order to High Court. Application has to be made within 90 days of the service of the Appellate Tribunal’s order. If the Appellate Tribunal is satisfied that a question of law arises out of its order, it shall within 90 days of receipt of application, draw up a statement of the case and refer it to the High Court. Procedure in High Court : If the Appellate Tribunal refuses to state the case, the aggrieved party may, within 120 days of service of notice of refusal, apply to the High Court and it may frame a question of law for its consideration. However, in case the High Court is unable to determine the question of law raised, it can refer the case back to the Appellate Tribunal for modification. The reference to the High Court shall be heard by a Bench of not less than two Judges of the High Court and provisions of section 98 CPC shall , so far as may be, apply in the case. The High Court shall decide the questions of law raised and deliver .udgment thereon containing the grounds on which such decision is based. A copy of such Judgment shall be sent under the seal of the Court and the signatures of the Registrar to the Appellate Tribunal who shall pass orders to dispose of the case according to such judgment. Where a reference relates to an assessment, the tax due under the assessment shall be payable in accordance with the assessment, unless recovery of the tax has been stayed by the High Court.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 COST OF REFERENCE
The costs of a reference to the High Court shall be at the discretion of the Court.
Section S of the Limitation Act, 1908 shall apply to application under sub-section (1).
An application under sub-section (1) by a person other than the Commissioner shall be accompanied by a fee of Rs. 100.
AIOU SOLVED ASSIGNMENT 2 CODE 456 SPRING 2017 APPEAL TO SUPREME COURT
Appeal to Supreme Court:-
(1) An appeal lies to the Supreme Court from any judgment of the High Court delivered on a reference made on question of law framed under section 133 in any case which the High Court certifies to be a fit case for appeal to the Supreme Court.
(2) The provisions of CPC relating to appeals to Supreme Court shall apply as if it were an appeal from the decree of High Court.
(3) if the judgment of the High Court is varied or reversed in appeal, effect shall be given to the order of the Supreme Court . Alternate Dispute Resolution – A parallel Appellate System: This new section has been introduced in the Ordinance through the Finance Act 2004. This section provides an appellate system parallel to conventional system. The mechanism of alternate dispute resolution (ADR as it is commonly called) has been provided for the first time in the income tax law. Simply put, any aggrieved person in connection with any matter of income tax pertaining to liability of income tax, admissibility of refund, waiver or fixation of penalty or fine, realization of any time period or procedural and technical condition may apply to Central Board of Revenue (CBR) for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application. The CBR will then form a committee (consisting of Income Tax Officers, Chartered or Cost Accountants, Advocates and Income Tax Practitioners or reputable tax payers) which will examine the issue raised and the CBR may, on the recommendation of this committee, pass appropriate orders. Upon payment of income tax etc. as determined by CBR, all decisions, orders and judgments shall stand modified and all proceedings shall abate. In case the aggrieved person is not satisfied with the orders of the CBR, he may file an appeal or reference with the appropriate forum, tribunal or court under the relevant provision of this Ordinance within a period of 60 days of communication of order to him.
BURDEN OF PROOF:-
In any appeal by a taxpayer under this Part, the burden shall be on the taxpayer to prove, on the balance of probabilities: (a) In the case of an assessment order, the extent to which the order does not correctly reflect the taxpayer’s tax liability for the tax year; or (b) In the case of any other decision, that the decision is erroneous.
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