ISLAMABAD: The aggrieved taxpayers would be bound to withdraw their appeals or reference applications or civil appeals before the court of law or any appellate authority within 60 days of the favourable order received from the Alternative Dispute Resolution Committee after resolution of the appellant's disputes on tax matters.
The Federal Board of Revenue (FBR) has issued a notification to specify the draft of the application for withdrawal of appeals at the forum of Commissioner Appeals through amendments in the Income Tax Rules, 2002.
Under the existing law, after notification of the Committee, the applicant or the Commissioner or both, as the case may be, shall withdraw any appeal relating to the dispute pending before any court of law or an appellate authority in the form.
According to the draft procedure on the alternative dispute resolution, the decision of the ADR Committee shall be binding on the Commissioner when the applicant; being satisfied with the decision, has withdrawn the appeal pending before the court of law or any appellate authority in the form and has communicated the order of withdrawal to the Commissioner. If the order of withdrawal is not communicated to the Commissioner within sixty days of the service of decision of the Committee upon the applicant, the decision of the Committee shall not be binding on the Commissioner.
If the order of withdrawal is not communicated to the Commissioner within sixty days of the service of decision of the Committee upon the applicant, the decision of the Committee shall not be binding on the Commissioner, FBR added.
As per new form (application for withdrawal of appeal) issued by the FBR for the taxpayers, the appellant withdraws the aforesaid appeal or reference application or civil appeal. The aforesaid appeal or reference application or civil appeal may be disposed of as withdrawn without prejudice to reinstatement of appellant's aforesaid appeal or reference application or civil appeal if the committee constituted under section 134A fails to make a decision within the stipulated time.
The new ADRC procedure said that any person or class of persons interested for resolution of any dispute shall submit a written application for alternative dispute resolution to the Board in the form as set out in Part I of the Schedule to this rule. The Board, after examination of the contents of an application by a taxpayer and facts stated therein and on satisfaction that the application may be referred to a committee for the resolution of the hardship or dispute, shall appoint and notify a Committee, within a period of sixty days from the receipt of application specified consisting of the members i.e. Chief Commissioner Inland Revenue having jurisdiction over the case; and two persons from a panel notified by the Board comprising of chartered accountants, cost and management accountants, advocates, having minimum of ten years' experience in the field of taxation and reputable businessmen.
The Chief Commissioner Inland Revenue having jurisdiction over the case shall be Chairperson of the Committee. The Board shall notify a panel comprising of chartered accountants, cost and management accountants, advocates, having minimum of ten years' experience in the field of taxation and reputable businessmen, in accordance with eligibility criteria specified in Part II of the Schedule to this rule. (7) The Committee shall decide the dispute through consensus within 120 days from the date of its constitution by the Board.
The Chairperson of the Committee shall be responsible for deciding the procedure to be followed by the Committee. If the Committee fails to decide within the period of 120 days, the Board shall dissolve the Committee by an order in writing and the matter shall be decided by the court of law or the appellate authority where the dispute is pending. On receipt of the Committee's decision the applicant may make the payment of income tax and other taxes as decided by the Committee and all decisions and orders made or passed shall stand modified to the extent.
A member of the Committee appointed shall on decision of the application by the Committee of which he is a Member, be paid a lump sum one time remuneration of Rs 100,000 for his services. The remuneration shall be paid by the Board from its budget allocation within fifteen days of the receipt of the decision of the Committee, revised procedure added.
Copyright Business Recorder, 2020