JURISDICTION AND DELEGATION OF POWERS [SECTIONS 209 to 213]

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JURISDICTION OF INCOME TAX AUTHORITIES [209]

Provisions of the Income Tax Ordinance regarding jurisdiction of various tax authorities are discussed below: 


1) The Board shall determine the jurisdiction of CCIRs, CIRs and Commissioners Appeals. 


These persons shall perform such functions and powers as may be assigned to them by Board in respect of persons, classes of persons or areas.[209(1)] 


2) The Board or the Chief Commissioner may transfer jurisdiction in respect of persons from one Commissioner to another. 


3) The Board or the CCIR may assign an Officer of inland revenue the powers and function of the CIR. Under such a case the officer of inland Revenue shall have the jurisdiction in respect of such persons, classes of persons or areas as are specified in the order. Where an Officer of inland Revenue is delegated with the powers and function of a CIR, then he shall be treated as CIR. The CCIR shall make such order only if he has obtained approval of Board.[209(2)to(4)] 


4) The CIR is assigned a specific area, within which he shall have the jurisdiction while doing so the following shall be taken into account:[209(5)]


S.No.
Type of Person
Jurisdiction Over a Person
1.
Person carrying on business.
If the person's place of business is within that area.

Where the business of a person is carried on in many places, then if the principal place of the business is within that area.
2.
Any other person.
If the person resides in that area.


'Place of Business' means: 

     A) For listed or unlisted public limited company, the place where the registered office of the company is situated; and 

       B) In case of other companies: 

  • If the company is primarily engaged in manufacture or processing, the place where factory is situated; 
  • If the company is primarily engaged in business other than manufacture or processing, the place where main business activities are actually carried on. 



5) Where there is a dispute regarding jurisdiction of a CIR over a person, the matter will be decided by: 
  • The concerned Chief Commissioner; 
  • The concerned Chief Commissioners; or 
  • The Board, if the CCIRs are not in agreement.[209(6)] 

6) A person is not entitled to call into question the jurisdiction of a CIR under the following cases: 

  • Where the person has filed the return of income to the CIR: or 
  • Where a person has been served a notice for furnishing of a return of income and the person has not furnished it within the time specified in the notice. Under such a case the person may challenge the Jurisdiction only if the time specified in the notice has not expired. [209(7)] 

7) Irrespective of the above-discussed provisions, a ClR has the jurisdiction in respect of any income arising within the area assigned to him. [209(8)] 


8) The power to confer Jurisdiction includes the power to transfer jurisdiction from one income tax authority to another. [209(8A)] 


9) Where any tax authority has succeeded the jurisdiction, then it may continue the proceedings from the stage where it was left by its predecessor. [209(9)] 


DELEGATION OF POWERS [209(2) & 210] 

Delegation of powers means the assignment of the powers and functions of an authority to another authority. As for the sake of its implementation, the whole Ordinance revolves around the CIR, thus there was a need to authorize delegation of his functions and powers to his subordinates (covered under the term “Officer of Inland Revenue”). The functions and powers of the Commissioner may be delegated to an Officer of Inland Revenue in any of the following ways: 


1) Delegation by Board [209(2)] 

The Board may assign all or any of the powers and functions of the Commissioner in respect of any person, class of persons or area. 



2) Delegation by Chief Commissioner [209(2) & (3)] 

The Chief Commissioner with the approval of Board may assign all or any of the powers and functions of the Commissioner in respect of any person, class of persons or area. 



3) Delegation by CIR [210] 

The CIR may delegate all or any of his powers and functions under the Income Tax Ordinance to any Officer of Inland Revenue. However, he cannot delegate his power of delegation. It means the Officer of Inland Revenue cannot further delegate the powers assigned to him. [210(1)] 

The CIR shall not delegate the powers of amendment of assessment u/s 122(5A) to an officer below the rank of Additional Commissioner. [210(1A)] 

The CIR may delegate his all or any of the powers and functions to conduct the audit u s 177 to a special audit panel or to a firm of Chartered Accountants or Cost and Management Accountants. [210(1 B)] 

The order regarding delegation may cover all or any of the persons, classes of persons or areas within the jurisdiction of the Commissioner. (210(2)] 

The CIR has power to cancel or modify the order issued by him for delegation of powers [210(3)] 

Where under a delegation order, an Officer of Inland Revenue or a special audit panel has exercised the powers and functions of CIR, it shall be treated that such powers have been exercised and the functions been performed by the Cl R. [211 ( 1 )] 

The CIR, irrespective of the delegation of powers to an Officer of Inland Revenue, is entitled to exercise any of his powers or perform any of his functions under the Ordinance. [211 (2)] 

The FBR or any other authority, with the approval of FBR, shall be competent to exercise all powers of any authority subordinate to it. [211 (3)] 

The Board may authorize any income tax authority to assist, guide or instruct the CIR or any Officer of Inland Revenue in the course of the proceedings under the Income Tax Ordinance. [213] 


Notes: 

1) The delegation by Board, CCIR or CIR shall be in writing. The Officer of Inland Revenue to whom the powers are so delegated shall for all purposes be treated as Commissioner and he shall in this case be subordinate to the CCIR instead of CIR. [210(4) & 207(5)] 

2) Where the delegation is done by Board or CCIR, the Officer of Inland Revenue cannot further delegate the functions and powers assigned to him through delegation. [209(4) & 211 (1 )] 


DELEGATION OF APPROVING AUTHORITY BY BOARD [212] 


Certain provisions of the Income Tax Ordinance empower the Board to grant approval as required under the Ordinance. This approving authority may be exercised by the Board itself or it may empower the Chief Commissioner or Commissioner to do so. This delegation may be made either through general or special order.

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