IR officer bound by Commissioner’s remand directions: SC

Business Recorder · 23/10/2026، 12:47:19 AM

ISLAMABAD: The Supreme Court held that where the Commissioner Inland Revenue (Appeals-I) remands a matter for re-examination of specific facts, the assessing officer is bound by the directions and cannot go beyond the scope of the appellate order. A two-member bench comprising Justice Munib Akhtar and Justice Aqeel Ahmed Abbasi dismissed, in limine, an appeal filed by the Commissioner Inland Revenue, Islamabad, against the Islamabad High Court’s (IHC) verdict dated 15.12. 2025. The bench observed that the legal position relating to scope of Section 124 of the ITO has been rightly interpreted by the Appellate Tribunal Inland Revenue (ATIR) and the High Court through impugned order, and no exception can be drawn. It stated it is settled legal position that the finding of facts as recorded by the ATIR, unless found to be perverse or contrary to the record, cannot be disturbed by the High Court while exercising reference jurisdiction or even by this Court. The judgment, authored by Justice Aqeel, noted that the assessing officer in the instant matter has misconstrued the provisions of Section 124 of the Income Tax Ordinance (ITO) with the proceedings after remand of a case for de novo proceedings, i.e. under Section 122(5A) of the ITO. It said; “Once a matter or issue is remanded by the Commissioner (Appeals) for re-examination of certain facts only, the assessing officer is bound by such directions and cannot go beyond the mandate as given in the Appellate Order, particularly, while giving effect to such Order under Section 124 of the ITO, for the reason that Appellate proceedings are continuation of original proceedings, therefore, the original order merges into the Appellate Order, and the assessing officer is bound to give effect to such Appellate Order in its letter and spirit, without creating fresh grounds, other than disclosed in the show-cause notice issued to the taxpayer under original assessment proceedings. The further said that in view of the facts and cir