In case either of the parties, the taxpayer or the commissioner / collector, is aggrieved by the decision of the commissioner (Appeals)/collector (Appeals), the aggrieved party can carry the matter further in appeal before the Appellate Tribunal Inland Revenue (ATIR) or Customs Appellate Tribunal as the case may be.
ATIR and Customs Tribunal are not only appellate forums for the taxpayers but are equally important for the FBR aggrieved of the relief given to the taxpayer by the Commissioner (Appeals) / Collector (Appeals), who incidentally is a member of the Inland Revenue Service and Customs Service of FBR, respectively.
The ATIR function through its benches comprising Judicial and Accountant Members. The qualification for appointment as Judicial Member is similar to that for the appointment of a High Court judge, and only well experienced and competent people from the legal profession and judiciary are selected.
Section 130(4) of the Income Tax Ordinance 2001 provides that the accountant member shall be either a grade 21 officer of inland revenue or a commissioner having at least three years' experience or a chartered accountant with 10 years' experience or a cost and management accountant with at-least 10 years' experience.
Unless the positions of Accountant Members are advertised through FPSC, how a chartered accountant or a cost and management accountant can ever be selected on merits as accountant member of the Tribunal.
At present, officers of Inland Revenue are sent to Tribunal on recommendation and a person having lien with FBR cannot perform the functions independently and further it will be a violation of Para 5 of the National Judicial Policy 2009 which says that "all special courts/tribunals under the administrative control of Executive must be placed under the control and supervision of the judiciary, their appointments / postings should be made on their commendation of the Chief Justices of High Court concerned ".
Therefore, it is suggested to immediately issue suitable directions to recruit members for Appellate Tribunal Inland Revenue and Customs Tribunal in the same manner as judges of High Court and if this is not possible, all members of the Tribunal including accountant members should be recruited through FPSC, which would be approved by the CJ of Supreme Court/High Courts.