The Income Tax Ordinance, 2001






122.  Amendment of assessments.-


(1)    Subject to this section, the Commissioner may amend an assessment order treated as issued under section 120 or issued under section 121, or issued under section 59, 59A, 62, 63 or 65 of the repealed Ordinance, by making such alterations or additions as the Commissioner considers necessary (Words "to ensure that the taxpayer is liable for the correct amount of tax for the tax year to which the assessment order relates" omitted by Finance Ordinance, 2003).  


(2)    An assessment order shall only be amended under subsection (1) within five years after the Commissioner has issued or is treated as having issued the assessment order on the taxpayer.  


(3)    Where a taxpayer furnishes a revised return under sub-section (6) of section 114 –  


(a)    the Commissioner shall be treated as having made an amended assessment of the taxable income and tax payable thereon as set out in the revised return; and  


(b)    the taxpayer’s revised return shall be taken for all purposes of this Ordinance to be an amended assessment order issued to the taxpayer by the Commissioner on the day on which the revised return was furnished.  


(4)    Where an assessment order (hereinafter referred to as the “original assessment”) has been amended under sub-section (1) or (3), the Commissioner may further amend, as many times as may be necessary, the original assessment within the later of –  


(a)    five years after the Commissioner has issued or is treated as having issued the original assessment order to the taxpayer; or  


(b)    one year after the Commissioner has issued or is treated as having issued the amended assessment order to the taxpayer.  


(4A)  In respect of an assessment made under the repealed Ordinance, nothing contained in sub-section (2) or, as the case may be, sub-section (4) shall be so construed as to have extended or curtailed the time limit specified in section 65 of the aforesaid Ordinance in respect of an assessment order passed under that section and the time-limit specified in that section shall apply accordingly.


(5)    An assessment order in respect of a tax year, or an assessment year, shall only be amended under sub-section (1) and an amended assessment for that year shall only be further amended under sub-section (4) where, on the basis of definite information acquired from an audit or otherwise, the Commissioner is satisfied that –


(i)    any income chargeable to tax has escaped assessment; or 


(ii)    total income has been under-assessed, or assessed at too low a rate, or has been the subject of excessive relief or refund; or 


(iii)    any amount under a head of income has been mis-classified.


Sub-section (5) substituted by Finance Act, 2003 which previously read as follows :


(5)     An assessment order shall only be amended under sub-section (1) and an amended assessment shall only be amended under subsection (4) where the Commissioner –  


(a)    is of the view that this Ordinance or the repealed Ordinance has been incorrectly applied in making the assessment (including the misclassification of an amount under a head of income, incorrect payment of tax with the return of income, an incorrect claim for tax relief or rebate, an incorrect claim for exemption of any amount or an incorrect claim for a refund); or  


(b)    has definite information acquired from an audit or otherwise that the income has been concealed or inaccurate particulars of income have been furnished or the assessment is otherwise incorrect.



(5A)   Subject to sub-section (9), the Commissioner may amend , or further amend, an assessment order, if he considers that the assessment order is erroneous in so far it is prejudicial to the interest of revenue.


(5B)   Any amended assessment order under sub-section (5A) may be passed within the time-limit specified in sub-section (2) or sub-section (4), as the case may be.



(6)    As soon as possible after making an amended assessment under sub-sections (1), sub-section (4) or sub-section (5A) (Substituted for "subsection (1) or (4)" by Finance Act, 2003), the Commissioner shall issue an amended assessment order to the taxpayer stating –  


(a)    the amended taxable income of the taxpayer;  


(b)    the amended amount of tax due;  


(c)    the amount of tax paid, if any; and  


(d)    the time, place, and manner of appealing the amended assessment.  


(7)    An amended assessment order shall be treated in all respects as an assessment order for the purposes of this Ordinance, other than for the purposes of subsection (1).  


(8)    For the purposes of this section, “definite information” includes information on sales or purchases of any goods made by the taxpayer, receipts of the taxpayer from services rendered or any other receipts that may be chargeable to tax under this Ordinance, and on the acquisition, possession or disposal of any money, asset, valuable article or investment made or expenditure incurred by the taxpayer.  


(9)    No assessment shall be amended, or further amended, under this section unless the taxpayer has been provided with an opportunity of being heard.



122A. Revision by the Commissioner.-


(1)    The Commissioner may, suo moto, call for the record of any proceeding under this 0rinanance or under the repealed Ordinance in which an order has been passed by any taxation officer other than the Commissioner (Appeals).


(2)    Subject to sub-section (3), where, after making such inquiry as is necessary, Commissioner considers that the order requires revision, the Commissioner may make such revision to the order as the Commissioner deems fit.


(3)    An order under sub-section (2) shall not be prejudicial to the person to whom the order relates.


(4)    The Commissioner shall not revise any order under sub-section (2) if-


(a)    an appeal against the order lies to the Commissioner (Appeals) or to the Appellate Tribunal , the time within which such appeal may be made has not expired; or


(b)    the order is pending in appeal before the Commissioner (Appeals) or has been made the subject of an appeal to the Appellate Tribunal.