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ISLAMABAD: The Peshawar High Court (PHC) has stopped the Appellate Tribunal Inland Revenue (ATIR), Peshawar from entertaining and deciding tax appeals filed by the taxpayers.

The PHC has also issued restraining order in a constitutional petition challenging the powers exercised by the Chairman ATIR to constitute benches of the Tribunal as per amended Section 130 of the Income Tax Ordinance, 2001.

It is reliably learnt that Advocate Waheed Shahzad Butt appeared before the division bench and argued the case. Earlier the Secretary Law was asked by the PHC to appear in person before court and explain as to why till date, rules could not be approved.

Petitioner accused that the benches constituted by the Chairman ATIR being in violation of provisions of Section 130 may graciously be declared unlawful and without lawful authority and jurisdiction and Chairman may be restrained from issuing any further order regarding constitution of benches (Single/ Division/ Touring Benches) in the Tribunal and operation of benches constituted by the learned Chairman Tribunal may be suspended till the final decision of the instant petition, as under the present scenario, the learned Chairman has no authority to constitute the Benches of the Tribunal under the newly enacted provisions of Section 130 of the Income Tax Ordinance, 2001.

PHC order states: The learned counsel for the petitioner contends, inter-alia, that after substitution of S-130 of the Income Tax Ordinance, 2000 through amendment Act, 2020 published in the Gazette on 30.3.2020, the power of Chairman to constitute benches of Tribunal have totally been changed/ withdrawn and the Prime Minister of Pakistan is legally authorized to frame rules for the said purpose, and that the benches of Tribunal constituted by the former is not in consonance. When confronted with the situation, the learned later informed the Court that draft rules have been transmitted to the office of Prime Minister for approval; but the same is still awaited and sought time for doing the needful; allowed.

The lawyer, Waheed Shahzad Butt, argued before the court that the respondents might be summoned, proceeded against, and punished in accordance with law for meaningful delay in approving the Tribunal Benches rules. After the arguments of the lawyer, the PHC passed above order

The matter has been adjourned till July 5, 2023. Till then, the single member posted at Peshawar bench shall be restrained from entertaining and deciding appeals pending before it, PHC order added.

Copyright Business Recorder, 2023

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