A new Section 133A of the Income Tax Ordinance, 2001 has introduced an Independent Case Scrutiny Committee to review tax cases before the department proceeds with references, appeals or reviews before the superior judiciary. The Commissioner can no longer independently pursue such litigation without first obtaining the Committee’s approval.
The three-member Committee will comprise a retired superior court judge as Chairman, an advocate having at least 15 years’ experience in tax and commercial litigation, and a serving or retired senior FBR officer of BS-20 or above. Its recommendation is binding on the concerned Commissioner, adding an institutional review stage before further litigation is initiated.
Importantly, the period consumed in obtaining the Committee’s approval will be excluded while computing the statutory limitation period. The new mechanism could therefore have a meaningful impact on departmental litigation by requiring cases to undergo an independent merits-based scrutiny before being carried to the High Court, Federal Constitutional Court or Supreme Court.