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129. Appeal to the Appellate Additional Commissioner.- (1) Any assessee objecting to an order made by Additional Commissioner under section 59 or 59A where any adjustment has been made under sub-section (3) or sub-section (2), respectively, of those sections, 62, 63, 65, 68, 75, 80, 80A, 91, 98, 99, 105 to 112 (inclusive), 114 [--] or sub-section (2) of section 148, or an order under section 52, treating a person to be an assessee in default, or an order under section 78, treating the assessee as an agent of a non resident, or an order under section 156 refusing to rectify the mistake, either in full or in part, as claimed by the assessee or having the effect of enhancing the assessment or reducing a refund or otherwise increasing the liability of the assessee may appeal to the Appellate Additional Commissioner against such order.

(2) No appeal under sub-section (1) shall lie against any order of assessment unless the tax payable under section 54 and not less than fifteen per cent of the amout of tax assessed shall be inserted.  [-- ] has been paid [.]

[--]

130. Form of appeal and limitation.- (1) Every appeal under section 129 shall be in the prescribed form and shall be verified in the prescribed manner, and shall be accompanied by a fee of one thousand rupees or ten per cent of tax levied, whichever is less, provided that where no tax is levied, ¹³[a fee of one thousand rupees in the case of companies and two hundred rupees in the case of other assessees shall be paid.

(2) The appeal shall be presented within thirty days of the following date, namely:-
(a) where the appeal relates to any assessment or penalty, the date of service of the notice of demand relating to the said assessment or penalty, as the case may be; and
(b) in any other case, the date on which intimation of the order to be appealed against is served.

(3) The Appellate Additional Commissioner may admit an appeal after the expiration of the period specified in sub-section (2) if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within that period.

131. Procedure in appeal.- (1) The Appellate Additional Commissioner shall give notice of the day fixed for the hearing of the appeal to the appellant and to the Deputy Commissioner against whose order the appeal is preferred and may adjourn the hearing of the appeal from time to time.

(2) The Appellate Additional Commissioner may, before the hearing of an appeal, allow an appellant to file any new ground of appeal not specified in the grounds of appeal already filed by him on being satisfied that the omission of that ground from the form of appeal was not willful or unreasonable.

(3) The Appellate Additional Commissioner may, before disposing of any appeal, call for such particulars as he may require respecting the matters arising in the appeal or cause further inquiry to be made by the Deputy Commissioner.

(4) The Appellate Additional Commissioner shall not admit any documentary material or evidence which was not produced before the Deputy Commissioner, unless he is satisfied that the appellant was prevented by sufficient cause from producing such material or evidence before the Deputy Commissioner.

132. Decision in appeal.- (1) In disposing of an appeal, the Appellate Additional Commissioner may,-
(a) in the case of an order of assessment,-
(i) set aside the assessment and direct the assessment to be made afresh after making such further inquiry as the Appellate Additional Commissioner may direct or the  Deputy Commissioner thinks fit;
(ii) confirm, reduce, enhance or annul the assessment;

(b) in the case of an order imposing a penalty, confirm, set aside or cancel such order or enhance or reduce the penalty; and

(c) in any other case, pass such order as he thinks fit.

(2) The Appellate Additional Commissioner shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has been given a reasonable opportunity of showing cause against such enhancement or reduction, as the case may be.

(3) Where, as the result of an appeal, any change is made in the assessment of a firm or an association of persons or a new assessment of a firm or an association of persons is ordered to be made, the Appellate Additional Commissioner may authorized the Deputy Commissioner to amend accordingly any assessment made on any partner of the firm or any member of the association.

(4) On the disposal of an appeal, the Appellate Additional Commissioner shall communicate the order passed by him to the appellant and to the Deputy Commissioner and the Commissioner.

(5) Where no order under sub-section (1) is made before the expiration of three months from the end of the month in which the appeal is presented, the relief sought through the said appeal shall be deemed to have been given and all the provisions of this Ordinance shall have effect accordingly:

Provided that, where the hearing of appeal is adjourned for any period on the request of the appellant, the said period shall be excluded while computing the aforesaid period of three months:

Provided further that nothing contained in this sub-section shall apply to any appeal presented before the first day of January, 1992.

(6) The provisions of sub-section (5) shall not apply unless a notice by the appellant stating that no order under sub-section (1) has been made is personally served by the appellant on the Appellate Additional Commissioner not less than thirty days before the expiration of the period of three months.

(7) Where an appeal has been preferred under section 129, the Appellate Additional Commissioner may, by an order in writing, stay the recovery upto eight-five per cent of the amount of tax, upto a period of three months or till the decision of appeal. whichever may be earlier.

133. Appointment of the Appellate Tribunal.- (1) The Federal Government shall appoint an Appellate Tribunal to exercise the functions conferred on the Appellate Tribunal by this Ordinance.

(2) The Appellate Tribunal shall consist of as many judicial members and accountant members, as may be necessary:

Provided that the Tribunal shall not be deemed to be invalidly constituted merely by reason of the absence of a judicial or an accountant member.

(3)   A judicial member shall be--
(i) a person who has exercised the powers of a District Judge and is qualified to be a Judge of a High Court; or
(ii) a person who is, or has been, an advocate of a High Court and is qualified to be a Judge of a High Court."; and

(b) after sub-section (3), the following new sub-section shall be inserted, namely.-
"(3A)  An accountant member shall be an officer of the Income Tax Group equivalent in rank to that of a Regional Commissioner of Income Tax.";

(4) The Federal Government shall ordinarily appoint a judicial member of the Tribunal to be Chairman thereof.

(5) The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted from members of the Tribunal by the Chairman of the Tribunal.

(6) A Bench shall consist of not less than two members of the Tribunal, and shall be constituted so as to contain an equal number of judicial members and accountant members, or so that the number of members of one class does not exceed the number of members of the other class by more than one:

Provided that the Federal Government may direct that all or any of the powers of the Appellate Tribunal shall be exercised (a) by any one member, or (b) by more members than one, severally and singly.

(7) If the members of a bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority; but if the members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the Chairman of the Tribunal for hearing on such point or points by one or more of the other members of the Tribunal, and such point or points shall be decided according to the opinion of the majority of the members of the Tribunal who have heard the case, including those who first heard it:

Provided that if there are only two members of the Tribunal the Federal Government may appoint an additional member for the purpose of deciding the case on which there is a difference of opinion.

(8) Subject to the provisions of this Ordinance, the Appellate Tribunal shall have power to regulate its own procedure, and the procedure of Benches of the Tribunal in all matters arising out of the discharge of its functions, including the places at which the Benches shall hold their sittings.

134. Appeal to the Appellate Tribunal.- (1) An assessee objecting to an order passed by an Appellate Additional Commissioner under section 111 or 132, or sub-section (2) of section 148, or an order made by the Appellate Additional Commissioner under section 156, [--] having the effect of enhancing the assessment or reducing a refund or otherwise increasing the liability of the assessee or an order made by an Inspecting Additional Commissioner under section 66A may appeal to the Appellate Tribunal against such order.

(2) The Commissioner may, if he objects to any order passed by an Appellate Additional Commissioner under section 132 direct the Deputy Commissioner to appeal to the Appellate Tribunal against such order.

(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within sixty days of the date on which the impugned order is communicated to the assessee or the Commissioner, as the case may be [.]

[--]

(4) The Appellate Tribunal may admit an appeal after the expiration of the period specified in sub-section (3) if it is satisfied that the appellant was prevented by sufficient cause from presenting it within that period.

(5) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner, and shall, except in the case of an appeal under sub-section (2), be accompanied by a fee of two thousand five hundred rupees or ten percent of the tax levied, whichever is less, provided that where no tax is levied, a fee of two thousand rupees in the case of companies and five hundred rupees in the case of other assessees shall be paid.

(6) Notwithstanding that an appeal has been filed under this section, tax shall, unless recovery thereof has been stayed by the Appellate Tribunal, be payable in accordance with the assessment made in the case [:]

Provided that where recovery of tax has been stayed by the Appellate Tribunal by an order, such order shall cease to have effect on the expiration of a period of three months following the day on which it is made, unless the appeal is decided, or such order is withdrawn, by the Appellate Tribunal earlier;

Provided further that the Appellate Tribunal shall not make an order which has the effect of staying the recovery of tax beyond the period of six months in the aggregate.

135. Disposal of appeals by the Appellate Tribunal.- (1) The Appellate Tribunal may, before disposing of any appeal, call for such particulars as it may require respecting the matters arising in the appeal or cause further enquiry to be made by the Deputy Commissioner.

(2) The Appellate Tribunal shall give both parties to the appeal an opportunity of being heard either in person or through an authorized representative.

(3) If the Appellate Tribunal is not satisfied that the assessment or the order which is the subject of the appeal ought to be interfered with, it shall reject the appeal.

(4) If the Appellate Tribunal is satisfied that an assessment which is the subject of appeal-
(a) ought to be reduced or annulled, it shall reduce or annul the assessment accordingly; or
(b) is insufficient, it shall enhance the assessment accordingly; or
(c) ought to be set aside, it shall set aside the assessment and direct the Deputy Commissioner to make a fresh assessment.

(5) If the Appellate Tribunal is satisfied that an order which is the subject of appeal, ought to be interfered with, it shall cancel or vary the order accordingly and shall issue such consequential directions as the case may require.

Explanation.- In the case of an order imposing a penalty, the power to vary the order shall include the power to enhance the penalty.

(6) The Appellate Tribunal shall not enhance an assessment or a penalty or reduce the amount of refund, unless the assessee has been given reasonable opportunity of showing cause against such enhancement or reduction, as the case may be.

(7) Where, as the result of an appeal, any change is made in the assessment of a firm or an association of persons or a fresh assessment of a firm or an association of persons is ordered to be made, the Appellate Tribunal may authorise the Deputy Commissioner to amend accordingly any assessment made on any partner of the firm or any member of the association, as the case may be.

(7A) Where no order under this section is made before the expiration of six months from the end of the month in which the appeal under sub-section (1) of Section 134 is presented, the relief sought through the said appeal shall be deemed to have been given and all the provisions of this Ordinance shall have effect accordingly:

Provided that, where the hearing of appeal is adjourned for any period on the request of the appellant, the said period shall be excluded while computing the aforesaid period of six months:

Provided further that the provisions of this sub-section shall come into force on such date [--] as may be notified by the Income Tax Appellate Tribunal in the official Gazette.

(8) The Appellate Tribunal shall communicate its order to the assessee and to the Commissioner.

(9) Save as provided in section 136, an order passed by the Appellate Tribunal on appeal shall be final.

136. Reference to High Court.- (1) Within ninety days of the date upon which he is served with notice of an order under section 135, the assessee or the Commissioner may, by application in such form and accompanied by such documents as may be prescribed, require the Appellate Tribunal to refer to the High Court any question of law arising out of such order, and the Appellate Tribunal shall, within ninety days of the receipt of such application, draw up a statement of the case and refer it to the High Court.

Explanation.-- For the removal of doubts it is hereby declared that a reference application under this section may be made in respect of a question of law arising out of an order of the Appellate Tribunal made on or after the first day of July, 2000.

(2) If, on an application made under sub-section (1), the Appellate Tribunal refuses to state the case on the ground that no question of law arises, the assessee of the Commissioner, as the case may be, may within one hundred and twenty days from the date on which he is served with notice of the refusal, apply to the High Court and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, frame a question of law and the provisions of sub-sections (5), (6), (7) and (8) shall, so far as may be, apply as they apply to a reference made under sub-section (1).

(3) If on any application made under sub-section (1), the Appellate Tribunal rejects it on the ground that it is time-barred, the assessee or the Commissioner, as the case may be, may within three months from the date on which he is served with notice of the rejection, apply to the High Court, and the High Court, if it is not satisfied of the correctness of the Appellate Tribunal's decision, may require the Appellate Tribunal to treat the application as made within the time allowed under sub-section (1).

(4) If the High Court is not satisfied that the statement in a case referred under sub-section (1) is sufficient to enable it to determine the question raised thereby, the Court may refer the case back to the Appellate Tribunal to make such modification therein as the Court may direct.

(5) When any case has been referred to the High Court under this section, it shall be heard by a Bench of not less than two Judges of the High Court, and in respect of such case the provisions of section 98 of the Code of Civil Procedure, 1908 (V of 1908), shall, so far as may be, apply notwithstanding anything contained in the Letters Patent applicable to any High Court or in any other law for the time being in force.

(6) The High Court upon the hearing of any such case, shall decide the questions of laws raised thereby and shall deliver its judgement thereon containing the grounds on which such decision is founded and shall send a copy of such judgement under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case conformably to such judgement.

(7) Where a reference is made to the High Court under this section, the costs shall be in the discretion of the Court.

(8) Notwithstanding that a reference has been made under this section to the High Court, tax shall, unless the recovery thereof has been stayed by the High Court, be payable in accordance with the assessment made in the case.

(9) Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an application under sub-section (1) or sub-section (2).

(10) When an application is made under sub-section (1) by the assessee, it shall be accompanied by a fee of one hundred rupees.

137. Appeal to the Supreme Court.- (1) An appeal shall lie to the Supreme Court from any judgment of the High Court delivered on a reference made, or any question of law framed, under section 136 in any case which the High Court certifies to be a fit one for appeal to the Supreme Court.

(2) The provisions of the code of Civil Procedure, 1908 (V of 1908), relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section in like manner as they apply in the case of appeals from decrees of a High Court.

(3) Where the judgment of the High Court is varied or reversed in appeal under this section, effect shall be given to the order of the Supreme Court in the manner provided in sub-section (5) of section 136 in the case of a judgment of the High Court.

(4) The provisions of sub-sections (6) and (7) of section 136 shall apply in the case of an appeal to the Supreme Court made under this section as they apply to a reference made under the said section 136.

138. Revision by Commissioner.- (1) The Commissioner may, either of his own motion or on an application made by the assessee for revision, call-for the record of any proceeding under this Ordinance in which an order has been passed by any authority subordinate to him and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Ordinance, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit:
Provided that no application for revision under sub-section (1) against an order made under section 132 shall lie after the thirtieth day of June, 2001

(2) The Commissioner shall not revise any order under sub-section (1) if,-
(a) where an appeal against the order lies to the Appellate Additional Commissioner or to the Appellate Tribunal, the time within which such appeal may be made has not expired, or the assessee has not waived his right of appeal; or
(b) the order is pending on appeal before the Appellate Additional Commissioner or has been made the subject of an appeal to the Appellate Tribunal; or
(c) in the case of an application made by the assessee, the application has not been made within ninety days of the date on which such order was communicated to him, unless the Commissioner is satisfied that the assessee was prevented by sufficient cause from making the application within the said period.

(3) No application for revision shall lie under sub-section (1) unless the tax payable under section 54 has been paid.

(4) Every application by an assessee under sub-section (1) shall be accompanied by a fee of one thousand rupees or ten per cent of tax levied, whichever is less, provided that where no tax is levied, a fee of one thousand rupees in case of companies and two hundred rupees in case of other assessees] shall be paid.

(5) For the purposes of this section,-
(a) an order by the Commissioner declining to interfere shall be deemed not to be an order prejudicial to the assessee; []

(b) the Appellate Additional Commissioner shall be deemed to be an authority subordinate to the Central Board of Revenue [;]

(c) where, in pursuance of an order by the Central Board of Revenue under clause (b) of sub-section (1) of section 5, a Commissioner exercises the powers of an Appellate Additional Commissioner, references to "Commissioner" shall be deemed to be references to Central Board of Revenue
(cc) where, in pursuance of an order by the Commissioner under clause (cc) of sub-section (1) of section 5, an Income Tax Panel exercises the powers of Deputy Commissioner, references to "Commissioner" shall be deemed to be references to "Regional Commissioner"; [ ]

(ccc) where, in pursuance of an order by the Commissioner under clause (c) of sub-section (1) of section 5, an Inspecting Additional Commissioner exercises the powers of an Deputy Commissioner of Income Tax, references to "Commissioner" shall be deemed to be references to "Regional Commissioner"; [ ]

(d) where an order is passed under section 115, references to "Commissioner" shall be deemed to be references to "Regional Commissioner" ;and

(e) where an order is passed by an Appellate Additional Commissioner on or after the first day of July, 1991, reference to "Commissioner" shall be deemed to be reference to Regional Commissioner.

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