Law and Regulation · change explainer

FBR Formulates Independent Case Scrutiny Committees to Review Tax Disputes

Under newly notified Income Tax Rules, three-member committees chaired by retired judges will evaluate dispute orders before the revenue administration files appeals in higher courts.

ByPlainly Pakistan Editorial

Published30 July 2026 at 6:15 am PKT

Reading time1 minutes

The Brief

3 SOURCESLAST CHECKED 30 JULY 2026

What changed: The Federal Board of Revenue issued S.R.O. 1165(I)/2026, inserting Rule 231CB into the Income Tax Rules, 2002, to create three Independent Case Scrutiny Committees chaired by retired judges that evaluate tax disputes before higher court appeals are filed.
Who is affected: Income taxpayers involved in departmental disputes, Inland Revenue Service Commissioners, and tax legal practitioners in Pakistan.
Effective date: July 27, 2026
What to do next: Taxpayers and legal representatives handling active disputes with Inland Revenue should examine pending Appellate Tribunal decisions and verify whether departmental references are subjected to the mandatory 15-day committee evaluation.

Rule 231CB Framework Introduced

The Federal Board of Revenue has issued S.R.O. 1165(I)/2026 to insert Rule 231CB into the Income Tax Rules, 2002. Promulgated under Section 133A read with Section 237 of the Income Tax Ordinance, 2001, the provision establishes three Independent Case Scrutiny Committees to assess tax disputes independently.

Committee Membership and Mandate

Each panel consists of three members: a retired judge of the Supreme Court, Federal Constitutional Court, or High Court serving as Chairman; an advocate with at least 15 years of tax and commercial litigation experience; and a serving or retired Inland Revenue Service officer of Grade BS-20 or above.

These panels are charged with independently assessing dispute cases and orders issued by Appellate Tribunals before the tax authority initiates references or petitions in High Courts, the Supreme Court, or the Federal Constitutional Court.

Procedural Timelines and Scope

Inland Revenue Service Commissioners are required to forward eligible cases to the designated panel within 10 days of receiving an order from the Appellate Tribunal Inland Revenue or a High Court. Upon receipt, the committee must finalize its recommendations within a 15-day timeframe.

The regulation applies across Pakistan to income taxpayers embroiled in departmental litigation, Commissioners of Inland Revenue, and tax law practitioners handling federal tax matters.

VERSION RECORD

Corrections & updates

Published 30 July 2026. No material corrections recorded. Meaningful factual changes create a new version and a visible note at the top of the article.