ITO Section 132

Decision of appeals by the Appellate Tribunal:

(1) The Appellate Tribunal shall decide the appeal within ninety days of its filing:

• Provided that appeals pending before the Appellate Tribunal on the date of commencement of the Tax Laws (Amendment) Act, 2024 (ACT NO. V of 2024), shall be decided within one hundred and eighty days:
• Provided further that where an appeal is not decided within the aforesaid period, the Appellate Tribunal shall seek condonation from the Minister of Law and Justice and such condonation shall not extend beyond ninety days.

(2) At the first hearing of appeal, the Appellate Tribunal shall —

• (a) bring to the notice of the taxpayer, the provisions relating to alternative dispute resolution under section 134A of this Ordinance; and
• (b) if the taxpayer declines the option of alternative dispute resolution and wishes to continue with the appeal, fix date or dates for hearing and decision of the appeal in consultation with the taxpayer and Commissioner and in accordance with the rules.

(3) The Appellate Tribunal shall ensure strict adherence by the taxpayer and the Commissioner, to the hearing schedule as prescribed, and shall hear and decide the appeal on the date or dates fixed, and no adjournment shall be granted, except 

• (a) where there are compelling reasons for adjournment, to be recorded by the Appellate Tribunal; and
• (b) on mandatory payment of such cost as the Appellate Tribunal may deem fit, which shall not be less than fifty thousand rupees.

(4) Where the appeal relates to an assessment order, the Appellate Tribunal may, without prejudice to the powers specified in sub-section (3), make an order to —

• (a) affirm, modify or annul the assessment order;
• (b) remand the case to the Commissioner for making such enquiry or taking such action as the Tribunal may direct; or
• (c) make such order as the Appellate Tribunal may deem fit.

(5) The Appellate Tribunal shall not increase the amount of any assessment or penalty or decrease the amount of any refund unless the taxpayer has been given a reasonable opportunity of showing cause against such increase or decrease, as the case may be.

(6) Where, as the result of an appeal, any change is made in the assessment of an association of persons or a new assessment of an association of persons is ordered to be made, the Appellate Tribunal may authorize the Commissioner to amend accordingly any assessment order made on a member of the association and the time limit in sub-section (2) of section 122 shall not apply to the making of such amended assessment.

(7) Where the appeal relates to a decision other than in respect of an assessment, the Appellate Tribunal may make an order to affirm, vary or annul the decision, and issue such consequential directions as the case may require.

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

(9) Save as provided in section 133, the decision of the Appellate Tribunal on an appeal shall be final.]