Lahore 22°C
Decision in appeal
(1) In disposing of an appeal lodged under section 127, the Commissioner (Appeals) may –
(a) make an order to confirm, modify or annul the assessment order after examining such evidence as required by him respecting the matters arising in appeal or causing such further enquires to be made as he deems fit; or (b) in any other case, make such order as the Commissioner (Appeals) thinks fit.
(2) The Commissioner (Appeals) shall not increase the amount of any 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, as the case may be.
(3) Where, as the result of an appeal, any change is made in the assessment of an association of persons or a new assessment of an association of persons is ordered to be made, the Commissioner (Appeals) may authorise the Commissioner to amend accordingly any assessment order made on a member of the association and the time limit in sub-section (2) of section 122 shall not apply to the making such amended assessment.
(4) As soon as practicable after deciding an appeal, the Commissioner (Appeals) shall specify in the order the amount of tax upheld and serve his order on the appellant and the Commissioner :
Provided that such order shall be passed not later than one hundred and twenty days from the date of filing of appeal or within an extended period of sixty days, for reasons to be recorded in writing by the Commissioner (Appeals):
Provided further that any period during which the hearing of an appeal is adjourned at the request of the appellant or is postponed due to any appeal or proceedings or stay order, remand or alternative dispute resolution proceedings or for any other reason, shall be excluded in the computation of the aforementioned periods.
(a) make an order to confirm, modify or annul the assessment order after examining such evidence as required by him respecting the matters arising in appeal or causing such further enquires to be made as he deems fit; or (b) in any other case, make such order as the Commissioner (Appeals) thinks fit.
(2) The Commissioner (Appeals) shall not increase the amount of any 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, as the case may be.
(3) Where, as the result of an appeal, any change is made in the assessment of an association of persons or a new assessment of an association of persons is ordered to be made, the Commissioner (Appeals) may authorise the Commissioner to amend accordingly any assessment order made on a member of the association and the time limit in sub-section (2) of section 122 shall not apply to the making such amended assessment.
(4) As soon as practicable after deciding an appeal, the Commissioner (Appeals) shall specify in the order the amount of tax upheld and serve his order on the appellant and the Commissioner :
Provided that such order shall be passed not later than one hundred and twenty days from the date of filing of appeal or within an extended period of sixty days, for reasons to be recorded in writing by the Commissioner (Appeals):
Provided further that any period during which the hearing of an appeal is adjourned at the request of the appellant or is postponed due to any appeal or proceedings or stay order, remand or alternative dispute resolution proceedings or for any other reason, shall be excluded in the computation of the aforementioned periods.
Amendment history (12)
- Inserted by the Finance Act, 2012.
- Inserted by the Finance Act, 2015
- Clause (a) substituted by the Finance Act, 2005. The original clause (a)
- The words inserted through Finance Act, 2020 dated 30 June, 2020
- The words “notice of” omitted by the Finance Act, 2002
- Full stop substituted by the Finance Act, 2009.
- Inserted by the Finance Act, 2009.
- Sub-section (5) omitted by the Finance Act, 2012. The omitted sub-section (5)
- Sub-section (6) omitted by the Finance Act, 2012. The omitted sub-section (6)
- Sub-section (7) omitted by the Finance Act, 2012. The omitted sub-section (7)
- 1Section 129A inserted by the Finance Act, 2026.
- 2Section 130 substituted through Tax Laws (Second Amendment) Ordinance, 2019 dated 26
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 262
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.