The Income Tax Appellate Tribunal (ITAT) is the highest appellate authority under the Income Tax Ordinance, 2001. It is appointed by the Federal Government and hears appeals against decisions of the Commissioner (Appeals). The ITAT consists of judicial and accountant members appointed by the Federal Government. It regulates its own procedures and decides appeals through benches, with decisions made based on majority opinion. A decision on a point of fact by the ITAT is final, while a decision involving a point of law can be referred to the High Court.

2. Income Tax Appellate Tribunal [ITAT]
• 1) Status of the ITAT:
• Income Tax Appellate Tribunal is the highest
appellate authority under the Income Tax Ordinance,
2001.
• 2) Who appoints the ITAT?
• The Income Tax Appellate Tribunal (ITAT) is
appointed by the Federal Government.

3. • 3) Who may appeal to the ITAT?
• If a taxpayer or Commissioner of Income
Tax (CIT) is not satisfied with the decision of
the Commissioner's (Appeals). The un-satisfied
party may appeal to the appellate tribunal.
• 4) Basic function of the tribunal:
• The basic function of the tribunal is to hear
the appeals against the decisions of the
Commissioner (Appeals)

4. • 5) Head of the appellate tribunal:
• Head of the appellate tribunal is called
Chairman. Chairman is appointed by
the Federal Government, generally, out of the
judicial members of the tribunal.
• 6) Members of the ITAT:
• There are two types of the Income Tax
Appellate Tribunal (ITAT) members:
• i) Judicial members
• ii) Accountant members

5. • 7) Who appoints the members?
• The Federal Government appoints the
members of the ITAT considering
their qualifications.

6. • 8) Qualification of members:
• i) Judicial members:
• A person may be appointed as a judicial member of the appellate
tribunal if the person:
• a) Has exercised the powers of a district judge and is qualified to be
a judge of a high court; or
• b) Is or has been an advocate of a high court and is qualified to be a
judge of a high court.
• ii) Accountant members:
• A person may be appointed as an accountant member of the appellate
tribunal if the person is an officer of the Income Tax Group equivalent in
rank to the RCIT
• 9) Number of the ITAT members:
• The Federal Government may appoint as many members of the
appellate tribunal as are considered necessary.
• .

7. • Powers and Functions of the Appellate Tribunal
• The Income Tax Appellate Tribunal is the head of the Appellate
System under the Income Tax Ordinance, 2001. It is independent
from the FBR. In other words, the FBR may not interfere in the
appellate functions of the ITAT.
• 1) Performance of the functions of the ITAT:
• The powers and functions of the ITAT are exercised and
discharged by the Benches.
• 2) Establishment of Benches:
• The Benches of the ITAT are constituted by the Chairman out
of the judicial and accountant members of the ITAT.
• 3) Placement of Benches:
• The ITAT shall decide that where the Benches of the ITAT
shall hold their sittings.

8. • 4) Power to regulate its own procedure:
• According to section 130(12), the Appellate Tribunal has the power
to regulate its own procedure.
• 5) Decision of the appeals:
• The appellate tribunal performs its functions in deciding the
appeals against decisions of the Commissioner (Appeals) through
establishment of Benches.
• 6) Decision about number of the members of the Benches:
• Where the members are equally divided in their opinion, the
matter is referred to the chairman of the ITAT. Chairman shall appoint
one or more other members of the tribunal for hearing of disputed
point.
• 7) Power of final decision:
• The decision of the appellate tribunal on a point of fact is final. If
the decision involves point of law, it may be referred to the High
Court.

9. • Number of the Members of a Bench:
• A bench, generally, consist of at least two members. Normally, a bench
consists of equal number of judicial as well as accountant members (one
judicial + one accountant) but in certain cases, the number of one type of
members may exceed the other.
• (For example: One judicial + Two accountants or Two judicial + One
accountant)
• Note: The Federal Government may authorize only one member of the
tribunal to alone hear and decided the case.
• Who Regulate the Procedure of the ITAT?
• According to section 130(12), the Appellate Tribunal has the power to
regulate its own procedure, and the procedure of its Benches in all
matters arising out of:
• 1) The discharge of its functions
• 2) The places at which the Benches shall hold their sittings

10. • Procedure of the Decision of a Bench:
• Decision is made by the bench. If the members of a
bench differ in opinion on any point, the majority
decision is accepted. Where the members are equally
divided in their opinion, the matter is referred to the
Chairman. Chairman shall appoint one or more other
members of the tribunal for hearing of disputed point.
The point 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 hear it
• Note: ft there are equal numbers of the Appellate
Tribunal, the Federal Government may appoint an
additional member for the purpose of deciding the case
on which there is a difference of opinion

11. • Why Appellate Tribunal is called Final Fact
Finding Authority?
• The Appellate Tribunal is called final fact
finding authority because the decision of the
appellate tribunal on a point of fact is final. If
the decision involves point of law, it may be
referred to the High Court.

12. • Administration:
• Registrar is the responsible authority in the office of appellate
tribunal who works under the guidance of Chairperson; and
• i) Entertains the appeals provisionally;
• ii) Fixes the dates for hearing; and
• iii) Looks after the Appellate Tribunal office matters.
• Exam Alert:
• If powers and functions of the Deputy / Assistant Commissioner of
Income are asked in exam;
• Deputy Commissioner is included in the definition of Taxation
Officer and Taxation Officer has no his specific functions. All the
functions delegated by the CIT to such authorities are the functions
of the Deputy / Assistant Commissioner.