Part 3 - Administration
3. (1) The federal government shall constitute a Federal Board of Revenue comprising a Chairman and Members required from time to time to implement this Act.
(2) The Board shall exercise such powers and perform such duties as may be entrusted to the Board by or under any law subject to the control of the Federal Government.
(3) All decisions of the Board shall have the consent of at least three Members of the Board (including the Chairman).
4. (1) The Board shall have the following classes of tax authorities under its control and management for the purposes of the Act:
(a) Chief Commissioner Inland Revenue,
(b) Commissioner of Inland Revenue,
(c) Additional Commissioner Inland Revenue,
(d) Deputy Commissioner Inland Revenue,
(e) Assistant Commissioner Inland Revenue,
(f) Taxation Officer,
(g) Inspector.
(2) The federal government shall appoint as many of the Inland Revenue authorities mentioned in clause (1) as may be necessary for the purposes of the Act.
5. Subject to the rules and orders of the federal government regulating the conditions of service of persons in public services and posts, the Board itself or by authorizing the Chief Commissioner in this behalf, may appoint such executive or ministerial staff as may be necessary to assist the Inland Revenue authorities in the execution of their functions.
6. The Board may issue orders, instructions and directions, without interfering with the judicial discretion of an appellate authority, to any tax authority for the following purposes and all such orders, instructions and directions shall be binding on all such authorities -
(1) Relaxation of any provision contained in Chapters 4 and 6 of the Act in respect of any class of incomes or class of cases, which, in the opinion of the Board, is necessary in the public interest;
(2) Admission of an application or claim for any exemption, deduction, refund or any other relief under the Act after expiry of the specified period to avoid genuine hardship in any case; and
(3) Proper administration of the Act including the regulation and control of the procedure for implementing the provisions of Chapters 5, 7, 8 and 9.
7. (1) The Board shall assign jurisdiction to the inland revenue authorities, and may also authorize other authorities to assign such jurisdiction to such other authorities as it may deem proper, to exercise all or any of the powers and to perform all or any of the functions under the Act, control and manage the authorities and the staff,.
(2) Any case or any proceeding under any provision of the Act in respect of a case shall be transferred from one officer to another as prescribed by the Board provided that, where, it is sought to be transferred not at the option of the assessee, the assessee shall be given a reasonable opportunity of being heard in the matter and the reasons for doing so shall be recorded by the authority transferring the case.
8. Whenever in respect of any proceeding under the Act, an authority ceases to exercise jurisdiction and is succeeded by another who has the jurisdiction, the authority so succeeding may continue the proceeding from the stage at which the proceeding was left by the predecessor:
Provided that the assessee concerned may demand that before the proceeding is so continued, the previous proceeding or any part thereof is reopened or that before any order is passed against him, he is reheard.
Part 4 - General
9. Every person in respect of whom proceeding under any provision of the Act has been initiated or who is required to have a National Tax Number (NTN) under any notification issued by the Board in this behalf, and who has not been allotted such a number shall, within one month of the initiation of the proceeding or issue of the notification, as the case may be, apply in the prescribed manner to the Taxation Officer for the allotment of the number.
10. Every person, who has been allotted a National Tax Number shall -
(1) quote such number in all his returns to, or correspondence with any inland revenue authority;
(2) quote such number in all challans for the payment of any sum due under this Act; and
(3) quote such number in all documents pertaining to such transactions as may be prescribed by the Board.
11. Every person shall intimate to the Taxation Officer any change in his address or in the name or nature of his business or any changes in the constitution, succession or dissolution of a firm or a company.
12. A notice or requisition under this Act may be served on a person as provided under the Code of Civil Procedure, 1908 (V of 1908) by an Inland Revenue authority for -
(1) enforcing attendance;
(2) examination on oath;
(3) producing books of accounts or any other document; and
(4) issuing commissions.
13. Where a notice or requisition under section 12 has been issued to a person, the powers available to a court as provided in Chapter VI of the Code of Criminal Procedure shall be available to the Inland Revenue authority to compel appearance.
14. Any assessee who is required to appear before any Inland Revenue authority under any proceeding under the Act except under section 12 may appear through an authorized representative as prescribed by the Board.
CHAP TER 2
CHARGE OF INCOME TAX
Part 1 - General Rate of Income tax
15. Save as otherwise provided in any other provision of the Act, income tax in respect of the Net Annual Income of every person shall be charged at the rate prescribed in the First Schedule of the Act.
16. Income tax in respect of the Net Annual Income of a firm, or an association of persons, or a body of individuals, whether incorporated or not, where the individual shares of the partners or the members, as the case may be, in the whole or any part of income, are indeterminate or unknown, shall be charged at the rate of 30 per cent of the Net Annual Income.
17. Where the person is in receipt of any income on which no income tax is payable as mentioned in Part 3 or any income on which special rates of income tax as mentioned in Part 4 of this Chapter are applicable, income tax to be charged shall be computed at average income tax rate on the Net Annual Income.
18. Income tax in respect of income from long-term sources as provided in Part 6 of Chapter 3 of the Act should be charged in the following manner:
(1) Number of years for which the asset was held or the source of income was in existence, assuming part of a year as one year, shall first be determined.
(2) Income from the long-term source as assessed shall be divided by such number of years.
(3) Income tax to be charged shall be the sum of income tax calculated on the amount arrived at in clause (2) at the rates prescribed in the First Schedule multiplied by the number of years arrived at in clause (1) in respect of each of such long-term sources.
19. Where any relief of tax is granted or avoidance of double taxation is provided for under Part 5, the provisions of this Act shall apply to the extent they are beneficial to the assessee.
Part 2 - Persons whose income is exempted from income tax
20. Income of a company wholly owned by the Federal Government shall be exempted from income tax.
21. Income of an authority, institution or body created under an Act of the Parliament shall be exempted from income tax if so provided under that Act.
22. Income of an institution, association or body existing solely for one or more of the following purposes and not for purposes of profit and created or recognised as such by the Federal Government shall be exempted from income tax:
(1) scientific research,
(2) education,
(3) medical service,
(4) collection and distribution of news,
(5) promotion of sports,
(6) promotion and regulation of a legal business or profession,
(7) development of village industries,
(8) administration of any public, charitable or religious trust or institution,
(9) national relief,
(10) promotion of Pakistani culture and arts,
(11) promotion of co-operative institutions, and
(12) economic development of backward communities of Pakistan.
23. Income or voluntary contributions received or due to be received by any trust, institution or body registered under any Act of the Federal or a Province and existing solely for charitable purposes and not for purposes of any profit shall be exempted from income tax subject to the following conditions -
(1) at least 80 per cent of such receipts during the year shall be spent for the charitable purposes during that year,
(2) money remaining in balance may be deposited in an account notified by the Federal Government,
(3) no benefit accrues directly or indirectly to the author of the trust or to the founder of the institution or to any of the trustees or managers or to any person who has contributed ten thousand rupees or more or to any of the relatives of such persons, and
(4) at least 20 percent of the voting power in the management or administration of the trust or body shall vest in the nominees of the Federal Government.
24. Income of a political party recognized by the Election Commission of Pakistan shall be exempted from income tax subject to the following conditions -
(1) the party maintains proper books of accounts as prescribed;
(2) it keeps a record of names and addresses of the persons giving contribution; and
(3) the accounts are audited by a Chartered Accountant.
Part 3 - Income on Which No Income tax is Payable
25. Income tax shall not be payable on any income falling within any of the following clauses:
(1) agricultural income;
(2) dividend;
(3) any sum received by an individual as a member of a Hindu Undivided Family, where such sum has been paid out of the income of the family, or, in the case of any impartible estate, where such sum has been paid out of the income of the estate belonging to the family;
(4) share, compensation, salary, bonus, commission or remuneration by whatever name called, due to, or received by partner of a firm from such firm, or a member of an association of persons from such an association;
(5) any income by way of salary payable by the Government of Pakistan in Pakistan or abroad; and
(6) any income exempted by an Act of Parliament.
Part 4 - Special Rates of Income tax
26. Income tax in respect of income from profits and gains of any manufacturing concern, may, at the option of the assessee, be calculated at the rate of 5 per cent of total sales turnover or gross receipts as the case may be.
27. Income tax shall be charged in the case of non-residents at the rate of 10 per cent of gross receipts, in respect of income from -
(1) dividends;
(2) compensation;
(3) units, securities, bonds etc;
(4) royalty or fees for any technical or professional services;
(5) long-term sources; and
(6) ship carrying passengers, livestock, mail or goods shipped at a port in Pakistan, whether the amount is paid or payable in or out of Pakistan.
28. Income tax on income from undisclosed sources shall be charged at the rate of 30% of such income.
29. Income tax in respect of any benefit, perquisite or allowance given in any manner but not in cash, in respect of employment, to the employee or to an associate of the employee or to a third party at the request of the employee or his associate shall be charged, in the case of the employer, at the rate of 20% of the value of such benefit, perquisite or allowance to be computed in the prescribed manner and no tax in this respect shall be payable by the employee.
Part 5 - Double Taxation Relief
30. The Federal Government may enter into an agreement with the Government of any foreign country -
(1) for the granting of relief in respect of income on which have been paid both income tax under this Act and income tax under that country, or
(2) for the avoidance of double taxation of income under this Act and under the corresponding law in force in that country, or
(3) for exchange of information for the prevention of evasion or avoidance of income tax chargeable under this Act or under the corresponding law in force in that country, or investigation of cases of such evasion or avoidance, or
(4) for recovery of income tax under this Act and under the corresponding law in force in that country, and, may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement.
CHAPTER 3
ASSESSMENT OF INCOME
Part 1 - Scope of Assessment of Income
31. The income of any year shall include -
(1) in the case of a resident person, all income received or due to be received from all sources in Pakistan and outside by or on behalf of such person;
(2) in the case of a non-resident person all income received or due to be received from a source in Pakistan; and
(3) from a source outside Pakistan to the extent it is derived from a business controlled in or a profession set up in Pakistan by or on behalf of such person.
32. The following incomes shall be deemed to be received or due to be received in Pakistan:
(1) all income received or due to be received, directly or indirectly, through or from any business connection in Pakistan, or through or from any property in Pakistan, or through or from any asset or source of income in Pakistan, or through the transfer of a capital asset situated in Pakistan; and
(2) any salary for service rendered in Pakistan.
33. All incomes for the purposes of assessment shall be classified under the following heads of income -
(1) Income from salary,
(2) Income from house property,
(3) Income from business or profession,
(4) Income from other sources,
(5) Income from long-term sources,
(6) Income from undisclosed sources.
34. (1) The total annual income shall be the sum of incomes from all heads mentioned in section 33 excluding income from long-term sources under section 27(6), income from undisclosed sources under section 28, income on which no income tax is payable under Part 3 and income in respect of which special rates of income tax are applicable under Part 4 of Chapter 2 and after following set off of losses provided for under Part 8 of this Chapter.
(2) The Net Annual Income shall be the total annual income as reduced by deductions under Part 9 of this Chapter.
(3) The gross annual income shall be the net annual income as increased by the income from undisclosed sources under section 28, income on which no income tax is payable under Part 3 and income in respect of which special rates of income tax are applicable under Part 4 of Chapter 2 of the Act.
(4) The gross total income shall be the gross annual income as increased by the income from long-term sources under section 27(5) of the Act.
Part 2 - Income from Salary
35. Salary means any payment, whether due or not, in respect of an employment, given in cash to the employee or to an associate of the employee or to a third party at the request of the employee or his associate and shall include, except to the extent prescribed by the Federal Government-
(1) Any wages annuity or pension, gratuity, fees, perquisites or allowances, profit in lieu of or in addition to salary or wages, advance of salary, payment received in respect of any period of leave not availed of, or annual accretion to a fund recognised by the Commissioner of Provident Fund which is contributed by the employer;
(2) any assets, goods or services provided at less than the fair market value to the extent of the difference; and
(3) any salary or arrears of salary, paid, allowed or due from any employer in the year and from any other employer in any other year provided it has not already been assessed to tax.
36. The following deductions shall be allowed before determining the income from salary -
(1) a sum of Rs 80,000 as reduced by any income assessable under the Act for each of the spouse and the first two children who are dependent on the employee,
(2) leave travel concession or assistance received or due to be received as prescribed by the Federal Government,
(3) any allowance received or expenditure incurred or due to be incurred by the employee in respect of residential accommodation occupied by him as prescribed by the Federal Government; and
(4) a ny allowance to meet expenses wholly, necessarily and exclusively incurred in the performance of duty as prescribed by the Federal Government.
Part 3 - Income from House Property
37. The annual value of any property consisting of any buildings or lands appurtenant thereto of which the assessee is owner, excluding such portions as may be being used for any business or professional purposes, shall be assessed as income from house property.
38. The annual value as referred to in section 37 shall be the sum for which the said property may reasonably be expected to be let out from year to year or the rent received or receivable during the year, whichever is more.
39. The following deductions shall be allowed before arriving at the income from house property -
(1) the taxes in respect of the property paid during the year;
(2) a sum equal to twenty per cent of the annual value;
(3) compensation calculated at the rate of 12% of expenditure incurred for acquiring the property; and
(4) where the property was vacant during a part of the year, that part of the annual value which is proportionate to the period of vacancy, provided that this allowance shall be given in respect of one such property only.
Part 4 - Income from Business or Profession
40. The following income shall be assessed as income from business or profession-
(1) the profits and gains, arising directly or indirectly, received or receivable by any person, relating to any business or profession which was carried on by the assessee at any time during the year,
(2) the value of any benefit of perquisite, whether convertible into money or not, arising directly or indirectly, from the business or profession;
(3) any share, salary, compensation, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm or a member of an association of persons, from the partnership of such a firm or the membership of such an association, as the case may be; and
(4) any debt, allowed as bad or doubtful under clause (3) of section 42, to the extent it is actually recovered during the year.
41. In respect of any capital expenditure including goodwill, to the extent it is wholly and exclusively necessary for carrying on the business or profession during the year, the fair market value of the asset represented by such expenditure or the actual expenditure incurred by the assessee during the year or previous to it if not claimed earlier, whichever is less, shall be debited to a Capital Reserve Account and shall be further dealt with as below:-
(1) any sum, at the option of the assessee provided it does not exceed the debit balance at any point of time, may be credited to the Capital Reserve Account and debited to the profit and loss account;
(2) the fair market value or the actual value received or receivable, whichever is more, on transfer of any asset represented by such expenditure including goodwill, shall be credited to the profit and loss account on the date of such transfer.
42. Revenue expenditure shall be dealt with as below:
(1) in respect of rent, rates, taxes, repairs and insurance for premises, machinery, plant, or furniture and wholly and exclusively for the purposes of business or profession during the year, the actual payment made during the year shall only be allowed;
(2) any expenditure on scientific research related to the business shall be allowed to the extent it is actually incurred during the year,
(3) any bad or doubtful debt shall be allowed to the extent it is bad or doubtful in the opinion of the Taxation Officer or as prescribed by the Board and has actually been written off in the books of accounts of the assessee;
(4) no personal expenditure in respect of any person, whether connected with the business or profession or not, shall be allowed;
(5) no expenditure to the extent, in the opinion, of the Taxation Officer or as prescribed by the Board, it is excessive or unreasonable, having regard to the fair market value of the goods, services or facilities for which the payment is made and to the legitimate needs of the business or profession of the assessee, shall be allowed.
43. It shall be compulsory for every person having income from profits and gains of business or profession to maintain books of account, if the gross receipts or sales exceed the sum prescribed by the Board.
44. Notwithstanding any provisions of this Part, the Board may prescribe any method for computing the income from profits and gains of business or profession in any case or class of cases.
Part 5 - Income from Other Sources
45. The following incomes shall be assessed as income from other sources -
(1) income on which no income tax is payable as per clauses (1), (2), (3) and (6) of section 25;
(2) family pension;
(3) income from transfer of capital assets not assessable under section 47(1) and computed in accordance with the provisions of section 48; and
(4) any other income which is not included in any other sections of the Act.
46. Actual expenditure incurred wholly and exclusively for earning any income from other sources shall be allowed to be deducted if it has not been claimed as deduction under any other provision of the Act.
Part 6 - Income from Long-term Sources
47. The following incomes shall be assessed as income from long-term sources -
(1) income from transfer of capital assets whether the capital asset has been held by the assessee for more than 12 months in the year in which it has been transferred; and
(2) any gratuities, payment in communication of pension, cash equivalent of the leave salary, compensations under any statute or schemes approved by federal or provincial governments or any payment at the time of voluntary retirement, received or due to be received by the employee, by virtue of his employment for more than 12 months.
48. The income from capital gains assessable under section 45(3) or 47(1) and income from long-term sources shall be computed, by deducting from the full value of the consideration received or due to be received, the following amounts, as may be applicable -
(1) indexed cost of acquisition of the asset;
(2) indexed cost of any improvement thereto;
(3) expenditure incurred wholly and exclusively in connection with the transfer;
(4) amount deposited in an annuity scheme for a minimum period of 10 years as notified by the Federal Government; and
(5) amount spent for buying a residential house provided the assessee does not own another residential house.
Part 7 - Income from Undisclosed Sources
49. The following receipts, credits, expenditures or investments shall be assessed as income from undisclosed sources in the year in which any such sum is received or credited or the expenditure is incurred or the investment is made and about which the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Taxation Officer, satisfactory:
(1) credits in the books of accounts;
(2) investments which are not recorded in the books of account;
(3) any stock, money, bullion, jewellery or other valuable article or thing found in the possession of the assessee;
(4) any amount by which the amount expended, or where it is less than the fair market value, the fair market value of any investment or any stock, bullion, jewellery or other valuable article or thing found in the possession of the assessee exceeds the amount recorded in this behalf in the books of account;
(5) the amount covered by any expenditure or part thereof; and
(6) any amount which is borrowed on a hundi from, or any amount due thereon is repaid to, any person otherwise than through an account payee cheque drawn on a bank.
50. Where the transactions in respect of any investment, stock, money, bullion, jewellery or other valuable article or thing found in the possession or under the control of a person is not recorded in the books of accounts regularly maintained by him and,
(1) the person fails to make a statement on oath that such income has been received by him from a particular source during a year for which the due date for filing the return of income is not over, or
(2) having made such a statement withdraws it or does not disclose it in the relevant return of income or does not file such a return, the amount representing such transactions shall be assessed as income from undisclosed sources.
51. Where the assessee has concealed or furnished inaccurate particulars of any income, such income as is covered by such particulars shall be assessed as income from undisclosed sources.
52. If in respect of any fact or material related to the computation of the total income of any person -
(1) such person fails to offer an explanation or offers an explana Ztion which is found by the Taxation Officer to be false, or
(2) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of total income have been disclosed by him, then, the amount added or disallowed in computing the income shall be assessed as income from undisclosed sources.
53. No money deposited in the National Deposit Account as notified by the Federal Government shall be assessable under this Chapter and no explanation as regards the source of such money shall be required to be given provided that -
(1) no amount shall be allowed to be withdrawn for a minimum period of 3 years from the date of deposit; and
(2) no compensation shall be payable on such deposit.
Part 8 - Set-off of Losses
54. Where the net result of computation in respect of any source falling under any head of income is a loss, the assessee shall be entitled to have the amount of such loss set-off against his income from any other source under the same head.
55. Where the net result of computation under any of the heads of income from or house property or business or profession or other sources is a loss, the assessee shall be entitled to have the amount of such loss set-off against any other of these heads of income.
56. Notwithstanding any provision of this Part, no income on which income tax is not payable under Part 3 or in respect of which special rate of tax is applicable under Part 4 of Chapter 2 of the Act, shall be allowed to be set-off against any loss.
57. No loss under any head of income, which could not be set-off under the provisions of this part of the Act, shall be allowed to be carried forward to next year.
Part 9 - Deductions to be made in Computing Net Annual Income
58. Any deposit in the name of the individual under any scheme notified by Federal Government, such that no amount including the compensation could be withdrawn for a minimum period of three years, provided the deposit does not exceed 20 per cent of the total annual income and is made out of it, shall be deducted from the total annual income.
59. Any investments mentioned in section 58, not exceeding 20 per cent of total annual income and made out of it in the name of any member of the family in the case of an individual or any member in the case of a Hindu Undivided Family, shall be deducted from total annual income.
60. Any payments out of the total annual income not exceeding 20 per cent of it, to a person whose income is exempted from income tax under Part 2 of Chapter 2 of the Act subject to any conditions, general or specific, that the Federal Government may like to impose on the control and management of that person and notify, shall be allowed to be deducted from total annual income.
61. Any sum as notified by the Federal Government in the case of a person or a class of persons affected by flood, typhoon, hurricane, cyclone, earthquake or other convulsions of nature, or riot or civil disturbance, or, accidental fire or explosion or action taken by an enemy or action taken in combating an enemy (whether with or without a declaration of war) shall be allowed to be deducted from the total annual income of the assessee before giving any deduction under sections 58, 59 and 60 and the limit of 20% shall be applicable on the total annual income as reduced by any deduction under this section.
CHAPTER 4
PROCEDURE FOR ASSESSMENT
Part 1 - Procedure
62. The following persons shall file a return of income for every year in the prescribed form;
(1) All persons whose net annual income exceeds Rs 400,000;
(2) All persons whose incomes are exempted under Part 2 of Chapter 2 of the Act, unless exempted by the Board;
(3) Every person to whom a notice is issued by the Taxation officer in the prescribed form requiring him to file the Return of Income within one month of receiving the notice or, with the permission of the Additional/Deputy Commissioner, earlier.
(4) In all other cases, as the Board may prescribe.
63. Where a return is filed by a person under section 62 and he discovers an omission or a wrong statement therein, he may file a revised return before any order or any notice is issued to him under any clause of section 65.
64. The return shall be filed under section 62 before the following dates in the financial year following the year:
(1) where the net annual income is less than Rs 500,000 or where it is filed under Section 62(2), by the end of September;
(2) where the net annual income is less than Rs one million, by the end of October;
(3) where the net annual income is Rs one million or more, by the end of December.
65. (1) If the Taxation Officer is satisfied without requiring the presence of the assessee or the production by him of any evidence, that a return filed under section 62 is correct and complete, or that it requires rectification of any mistake apparent from record, he shall, within one year from the end of the financial year in which the return is filed, assess the income of the assessee on the basis of such return or such rectification, as the case may be, and determine the sum payable by the assessee or refundable to the assessee.
(2) An assessee may object to the order made under clause (1), by making an application to the Taxation Officer within one month in which the order is served on him and the Taxation Officer after considering such objections shall assess the income of the assessee and the tax payable by him or refundable to him, within one year from the end of the financial year in which such objections are received.
(3) Where in the opinion of the Taxation Officer -
(a) the return filed under section 64 is required to be examined; or
(b) particulars of any income are required to be investigated; or
(c) particulars of any income have not been furnished or have been wrongly furnished,
he may serve on the assessee a notice requiring him to produce or cause to be produced such accounts, documents, statements or information as the Taxation Officer may require, after recording the reasons for issuing the notice in writing.
(4) The notice under sub-clause (a) of clause (3) shall be issued before the expiry of two years from the end of the financial year in which the due date as mentioned in section 64 falls.
(5) The notice under sub-clause (b) or (c) of the clause (3) shall be issued before the expiry of four years with the approval of the Additional/Deputy Commissioner and eight years with the approval of the Commissioner, from the end of the year to which the particulars of the said income, in the opinion of the Taxation Officer, relate.
(6) Where a notice under clause (3) has been served on the assessee, the Taxation officer shall, after the hearing such evidence as the assessee may produce or the Taxation Officer may require to be produced and after taking into account all relevant materials which he has gathered, make an assessment or revise the assessment of the income of the assessee and determine the sum payable by him or refundable to him within one year from the end of the financial year in which the notice is served.
(7) Where the assessee fails to respond to the notice under clause (3) or to comply with all the terms of the notice, the Taxation Officer after taking into account all the relevant materials he has gathered, shall assess the income to the best of his judgment and determine the sum payable by the assessee.
(8) Where as a result of -
(a) any mistake apparent from record; or
(b) any order passed under any provision of the Act including Chapter 9, any order passed under the Act is required to be rectified, the Taxation Officer shall pass such an order of rectification within one year from the end of the financial year in which such mistake or order is intimated to the assessee;
Provided that where such an order affects the assessee in any adverse manner, he shall be given a reasonable opportunity of being heard.
(9) If the Commissioner, either of his own motion or on an application made by the assessee, considers that any order passed by the Taxation Officer is erroneous or prejudicial to the compensations of revenue or of the assessee, he may, after giving the opportunity of being heard to the assessee, call for and examine the record of any such proceedings and make or cause to be made such enquiry as he deems necessary, and, pass such order as is justified including an order enhancing, reducing, modifying or cancelling the assessment or directing a fresh assessment:
Provided that no such order, either by the Commissioner himself or through the Taxation Officer, shall be passed after the expiry of two years from the end of the financial year in which the order being revised by the Commissioner was passed.
(To be continued)
(The writers, lawyers and partners in Huzaima, Ikram & Ijaz, are Adjunct Faculty at Lahore University of Management Sciences)