IR Commissioners’ powers taken back: FBR wing to only conduct faceless audits, assessments

ISLAMABAD: The Federal Board of Revenue (FBR) Thursday withdrawn discretionary powers of the Commissioners Inland Revenue to unilaterally conduct audit and assessments of taxpayers through direct interactions under section 177 or section 214C and proceedings under section 111 (unexplained income) of the Income Tax Ordinance 2001.

The FBR has issued an S.R.O. 1665(I)2026 to amend Income Tax Rules, 2002 on Thursday.

Now, the National Faceless Center of the FBR would only conduct faceless audit and assessments against taxpayers under section 177 or section 214C and proceedings under section 111 (explained income) of the Income Tax Ordinance 2001.

A case shall be assigned to the Center where the taxpayer, class of taxpayers, income, class of incomes, case or class ofcases has been assigned to the Center by the Board under sub-section (2) of section 122E.

The FBR has constituted four wings including Audit Wing; Assessment Wing; Quality Control Wing and Field Operations Wing under the National Faceless Center.

According to the notification, the Center shall comprise a Director General and as many Chief Commissioners, Commissioners, Additional Commissioners, Deputy Commissioners, Assistant Commissioners, and any of the Income Tax Authorities.

The proceedings to be conducted in faceless manner has been explained by the FBR. In the cases towhich this Chapter applies, the following proceedings shall be conducted through the Center in the manner provided:-

(a) audit under section 177 or section 214C; (b) proceedings and orders under section 111 and (c) assessment, amendment of assessment, best judgment assessment and provisional assessment under Part II of Chapter X, including sections 120, 121, and 122 and (d) any proceeding incidental or ancillary to a proceeding referred to in clauses (a) to (c) including the issue of notices under sections 176 and 177, the obtaining ofinformation and evidence, and the imposition of penalty or default surcharge arising from the proceeding, FBR added.

Copyright Business Recorder, 2026