A. Background: TLQC 3642 of 28.7.25 about Updated Income Tax Ordinance from FBR and KC Recommendation in trail, blue, italic and double Line

B. Updated Commentary 

Further to KQU 4068, being an important matter, we would inform you about SRO 1496 dated 2.9.26, regarding substitution of Rule 231C of the Income tax Rules, 2002 (Attachment 3738.1) having 7 pages.

As the Rule is self-explanatory, it is not being explained, however, it is worthwhile to refer to para C. 

C. Kasbati & Co Views

The Rule has NOT been substituted owing to additions of New (a) sub-section 10A and (b) 2 provisos in sub- section 11. The comments thereon as explained in Finance Act Workshop are given below:

1. Replacement of unavailable member: If any member of the committee becomes unavailable or is unable to perform his functions at any stage of the proceedings, the Chairman of the Board shall appoint a replacement member within fifteen days of such vacancy.

2. Continuation of proceedings: The reconstituted committee shall continue to function under the same terms, conditions and limitations that applied to the original committee.

3. Additional time after reconstitution: Upon reconstitution, the committee shall be granted an additional period of sixty days to complete its proceedings and discharge its functions.

4. Minimum overall time protection: The amendment further ensures that the committee will have a minimum aggregate period of ninety days from the date of its original constitution, regardless of the time already spent before reconstitution. This safeguard prevents the committee from being deprived of a reasonable period to complete its work due to delays caused by vacancies.

The amendment is intended to prevent disruption, invalidation, or undue delay of committee proceedings arising from vacancies among committee members. By providing a statutory mechanism for timely replacement and extending the available time for completion of proceedings, the proposal strengthens procedural continuity, promotes administrative efficiency, and reduces the risk of legal challenges based on defects in committee composition. 

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to contact us.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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