I. FINANCE ACT WORKSHOP 2: After the earlier Finance Act Workshop, we realised that several interested participants could not attend, partly due to their busy schedules at that time. Moreover, due to the importance of the FIVE Finance Acts, which include over 500 amendments, we recommend attending the Finance Act Workshop to be held 21.8.26 (ISA) as per details in the trail, after the double line.

II. BACKGROUND: (a) This refers to the related Important (a) TLQC 3648 of 31.7.26 about FST Independent Case Scrutiny Committees New Rule 62A by SRO 1169 short comments with SRO 1169(1)/2026 - Independent Case Scrutiny Committees for Sales Tax (Attachment 3659.1) having 8 pages about Chapter IX-A We now give below our detailed comments (1) Also refer to other relevant TLQCs List is given in Para C

III. RELEVANT SECTION 47AAA & COMMENTS - AS EXPLAINED IN FINANCE ACT WORKSHOP HELD ON 28.7.26

A. INDEPENDENT CASE SCRUTINY COMMITTEE – NEW SECTION 47AAA - FB & FA DIFFERENCE (Track in bold change FB VS FA)

47AAA. Independent case scrutiny committee. – (1) A reference under section 47 before the High Court, or an appeal or review before the Federal Constitutional Court or the Supreme Court of Pakistan, as the case may be, shall only be filed by the Commissioner Inland Revenue after the same has been approved by an independent case scrutiny committee as constituted by the Board.

(2) The Board may constitute one or more such committees and assigned them cases or classes of cases decided by the Appellate Tribunal Inland Revenue or the High Court as the case may be

(3) The Committee shall comprise of the following Members as nominated by the Board

(a) a retired judge of Supreme Court of Pakistan, the Federal Constitutional Court, or any of the High Courts of Pakistan who shall also act as Chairman of the Committee;

(b) an Advocate having not less than fifteen years of experience in tax and commercial litigation before the High Court or Supreme Court of Pakistan, to be nominated from a panel notified by the Board from time to time; and

(c)a senior serving or retired officer of the FBR (BS 20 or above).

Provided that the committee may co-opt a chartered accountant as a non-voting member whenever required.

(4) The powers, functions, and procedure of the Committee along with remuneration of its Members shall be governed as prescribed.

(5) Recommendations of the committee shall be binding upon the Commissioner Inland Revenue having jurisdiction over the case.

(6) Notwithstanding anything contained in any other law for the time being in force, no suit, prosecution, or other legal proceedings shall lie against the Members of the Committee and the Commissioner Inland Revenue having jurisdiction over the case, in relation to the decisions made under this section.;

(7) The Committee constituted under this sub-section shall exercise its powers and functions with effect from the date of its constitution as notified by the Board.

(8) Notwithstanding anything contained in this Act or The Limitation Act, 1908, for purposes of determining whether a matter referred to in sub-section (1) has been filed within time, the period from the date from which time begins to run to the date on which the committee gives it approval, which period shall in each case be certified by the chairman, shall stand excluded:

Provided that in cases where time has already begun to run when this section comes into force the period as aforesaid shall commence from the date on which the Finance Act 2026 comes into force.

B. KC COMMENTS

FB Comments: (a) Proposed section 47AAA introduced (followed in FA except for matter in Comments 2) an Independent Case Scrutiny Committee, which requires that any reference before the High Court, or appeal or review before higher courts, can only be filed by the Commissioner IR after approval from this Committee. The Board will form one or more committees and assign them tax litigation cases or classes of cases decided by the Tribunal or HC.

(b) Each Committee will include (a) retired judge of the SC, FCC, or a HC as Chairperson (b) an experienced tax and commercial litigation lawyer from a Board-notified panel and (c) a senior serving or retired FBR officer of grade BS-20 or above.

(c) The committee will operate under procedures and remuneration rules prescribed by the Board. Its recommendations will be binding on the Commissioner Inland Revenue handling the case.

(d) Members of the Committee and the Commissioner will have legal protection, shielding them from lawsuits, prosecution, or legal proceedings for actions taken under this section. The Committee’s powers will apply from the date of its official notification.

2. FA added

(a) a proviso in sub-section (3)(c) allowing the committee to co-opt a chartered accountant (CA) as a non-voting member whenever required (KC is of the view that CA will not likely to accept to be part of the committee, as he has no voting powers); and

(b) a new sub-section (8) providing that, for determining whether a matter has been filed in time, the period from when time begins to run until the committee approves the matter shall be excluded for limitation purposes (with the exclusion running from the Finance Act 2026 commencement date for matters already in progress).

IV. LIST OF OTHER RELEVANT TLQCs

(a) TLQC3623 of 20.7.26 about Updated Federal Sales Tax Act from FBR and KC View & Recommendations 

(b) TLQC 3587 of 29.6.26 about Budget 2026-27: Finance Act Gazette plus 1,500 pages & KC Recommendations 

V. FURTHER DETAILS & SERVICES

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.