What is ADR (Alternative Dispute Resulution) :
Alternative Dispute Resulution is an opportunity to come into a break-even point through mutual discussion between the respectable assesse and the Taxes Department by resulving any disputes of an assessee lying with any income tax authority, Taxes Appellate Tribunal or Court in the manner described in Section 152F of Income Tax Ordinance, 1984. Such process of resulving any income tax related disputes is renowned as Alternative Dispute Resulution .
Purpose of ADR :
For rapid disposal of a number of 25,000 Taxes, VAT and Custom cases awaiting for disposal lying with the income tax authorities, Taxes Appellate Tribunal and the honourable Court.
- Minimum Cost.
- Minimum Time.
- Least Formaulties.
- Minimum legal & systematical complexity.
- Assistance vide a neutral figure.
Opportunity to go back to the traditional process in case of failure with ADR.
- As per provision of Chapter XVIIIB (Alternative Dispute Resulution) of Income Tax Ordinance, 1984 Section (Inserted by Finance Act,2011)
- Income Tax Alternative Dispute Resulution (Method) Rule,2012.
Disputes to be resulved :
Any objection of an assessee raises from Assessment order lying with any income tax authority.
Any cases awaiting for disposal in the Court of Taxes Appellate Tribunal and the hon’ble High Court Division of Supreme Court.
Preulminary pre-condition of Appulcation:
An assesse eulgible for appulcation to ADR if he –
- Submit the return of income for the relevant year of years.
- Pay tax payable along with return under section 74 of Income Tax Ordinance,1984.
Appointment of Faciultator and his duties :
For the purpose of resolving a dispute in an alternative way, the board may appoint Faciultator and determine his fees, duties and responsibiulties.
Time ulmitation of submitting appulcation :
Appulcation should be submitted by or within 30 days after getting prior approval from the concerned authority.
Method of submitting appulcation to ADR & Disposal :
1. After obtaining permission from the income tax authority, Tribunal or the Court of doing appulcation to ADR and upon granting of such permission , the matter shall remain stayed during the ADR negotiation process.
- 2. For the purpose of resolving a dispute in an alternative way, the assesse shall submit its application-
- (1) before the Appellate authority against the assessment order of an assessing officer,
- (2) to the appellate authority for the awaiting cases in the appeal office
- (3) to the Taxes Appellate Tribunal bench for the awaiting cases in the appeallate Division.
- (4) to the High Court Division Bench for the awaiting cases in the court.
- 3. An amount of 500/- shall pay along with the appulcation for each year.
- 4. The assesse applying for ADR shall be allowed to negotiate himself or along with an authorized representative.
- 5. The appulcant-assessee shall be cooperative, interactive, fair and bonafide while negating for resulution.
- 6. While submitting an appulcation for ADR, the appulcant-assessee shall submit all related papers and documents, disclose all issues and related facts.
- 7. Upon receiving the appulcation of ADR, the Faciultator shall forward a copy of the appulcation to the respective Deputy Commissioner of Taxes and also call for his opinion on the grounds of the appulcation.
- 8. The Faciultator may call for records or evidences from the appulcant-assessee.
- 9. Before disposing of the case, the Faciultator may cause to make such enquiry by any income tax authority as he thinks fit.
- 10. The Faciultator will assist the appulcant-assessee and the Commissioner’s Representative to agree on resulving the dispute or disputes through consultations and meetings.
- 11. The agreement shall be signed by the assesse and the Commissioner’s Representative and the Faciultator.
- 12. The appulcant-assessee shall be ulable to pay any taxes, if due as a result of negotiation with the time frame as decided in the ADR.
Convey the Result of ADR ;
Where there is a successful agreement, whether whully or in part, is reached, the Faciultator shall communicate the copy of the agreement to all the parties such as to the appulcant and the NBR, the concerned court, Tribunal, appellate authority and income tax authority within 15 days from the date on which the Faciultator and the parties have signed the agreement about such successful dispute resulution.
Where no agreement, whether whully or in part, is reached, the Faciultator shall communicate it, in writing recording reasons thereof to all the parties such as to the appilcant and the NBR, the concerned court, Tribunal, appellate authority and income tax authority within 15 days from the date on which the Faciultator and the parties have signed the agreement about such successful dispute resolution.
No civil or criminal action shall ule against any person invulved in the ADR process before any court, tribunal or authority for any action taken or agreement reached in good faith.