Commissioner of Income Tax

Definition

"Commissioner" means a person appointed as a Commissioner of Income Tax (CIT) u/s 208, and includes a Taxation Officer vested with all or any of the powers, and functions of the Commissioner.

Who appoints the Commissioner?

Commissioner is appointed by the FBR u/s 208 of the Income Tax Ordinance, 2001.

Basic function of the Commissioner:

Commissioner performs all such functions as are required by any provision of the Income Tax Ordinance, 2001 and as directed by the FBR.

Powers of the Commissioner:

Briefly speaking, the Income Tax Ordinance, 2001 revolves around the Commissioner because lot of powers has been granted under such Ordinance to the Commissioner under the Income Tax Ordinance, 2001.

Who supervises the CIT?

FBR and RCIT under whose jurisdiction, the Commissioner works, supervise the Commissioner of Income Tax.

Jurisdiction of the Commissioner:

i) If CIT is appointed for a specific area, the CIT shall perform his functions within his jurisdiction

ii) If CIT is not appointed for a specific area, the CIT shall perform his functions in respect of such persons or classes of persons or such area as the FBR may direct him.

Note: Income Tax Ordinance, 2001 also permits the delegation of work. If some work of Commissioner is delegated to a Taxation Officer such Taxation Officer may enjoy all powers of the Commissioner.

Powers and Functions of the Commissioner of Income Tax:

1)

Change in method of accounting [32(4)]

The Commissioner may allow a change in method of accounting, if the CIT is satisfied that the change is necessary to clearly reflect the person's income chargeable to tax under the head "Income from Business".

2)

Change in stock valuation method [35(6)]

The Commissioner may allow a person to change its stock valuation method.

3)

Allowability of Special Tax year [74(3)]

person

The Commissioner may allow a person to use special tax year, only if the has shown a compelling need to use special tax year.

4)

Allowability of Normal Tax Year [74(4)]

The Commissioner may allow a person to use normal tax year instead of special tax year, only if the person has shown a compelling need to use normal tax year.

5)

Imposition of conditions regarding tax year [74(5)]

to

The Commissioner may impose certain conditions while permitting a person use a special tax year or normal tax year.

6)

Withdrawal of permission to use a specific tax year:

The Commissioner may withdraw the permission granted to a person in respect of using the specific tax year (special tax year or normal tax year), after providing the opportunity of being heard.

7)

Transactions between associates [108(1)]

The Commissioner may, in respect of any transaction between associates, distribute apportionate or allocate income, deduction or tax credits.

8)

Unexplained income or assets [111]

The Commissioner may charge to tax the value of any unexplained income or asset and determine the value if it has been declared less than the fair market value (FMV).

9)

Issuance of notice for filing of return [114(3) and (4)]

The Commissioner may issue a notice to a person for filing a return.

10)

Issuance of notice to furnish Wealth Statement [116(1)]

The Commissioner may issue a notice to any person to furnish a wealth statement.

11)

Extension of time [119]

The Commissioner may grant the applicant an extension of time for furnishing the return, certificate, or statement etc.

12)

Best judgment assessment [121]

the

If the tax payer has not furnished required return or any other document, Commissioner may make best judgment assessment order.

13)

Amended assessment order [122]

The Commissioner may amend an original assessment order by making necessary alterations or additions.

14)

Recovery of tax from defaulting tax payer [138]

The Commissioner may take all necessary and appropriate actions for recovery of tax from a defaulting taxpayer

15)

Recovery of tax from other person on behalf of taxpayer [140]

The Commissioner may recover the tax from a person who holds money on behalf of the defaulting taxpayer

16)

Power to enter and search premises [175]

The Commissioner may enter in any business premises of the taxpayer within his jurisdiction to perform any task which is deemed fit for the Income Tax Ordinance, 2001.

17)

Power to select a person for audit [177]

The Commissioner may select a person for audit of his income tax affairs.

18)

Imposition of penalties [Part-X of Chapter-X)

The Commissioner may impose penalties for different defaults discussed under Part-X of Chapter-X of the Income Tax Ordinance, 2001.

19)

Imposition of additional tax [205]

the tax

The Commissioner may impose additional tax if the tax payer fails to pay by due date

20)

Appointment of subordinates [208(2)]

The Commissioner may appoint of his any subordinate authority by the approval of the FBR.

21)

Delegation of powers:

The Commissioner may delegate to any Taxation Officer all or any of its powers or functions, other than the powers of delegation.

22)

Appointment of expert [222]

The Commissioner may appoint any expert for the purposes of audit or valuation etc.

23)

Recognition / approval of funds:

and

The Commissioner may recognize the provident fund, superannuation fund gratuity fund etc. under the Income Tax Ordinance, 2001.

24)

Supervision of subordinate authorities:

The CIT supervises the functions, duties and jurisdiction of its subordinate authorities.