Not every FBR order is the last word. If the tax authority raises a demand you believe is wrong - an inflated assessment, a rejected refund, a disputed penalty, or an order passed after a notice under section 122 - the law gives you a structured right of appeal. Knowing the correct forum, the exact deadline, and the fee for each stage is what keeps a good case alive. Miss a 30-day window and you can lose the right to be heard entirely. This guide walks through the full appeal ladder for income tax under the Income Tax Ordinance 2001, with the same framework applying under the Sales Tax Act 1990 and the Federal Excise Act 2005.
The tax appeal ladder in Pakistan
Since the Finance Act 2025 restored the mandatory two-tier appellate system with effect from 1 July 2025, tax disputes follow a fixed sequence of forums. You cannot leapfrog a stage - each must be exhausted before you move up. The controversial threshold-based routing introduced by the Tax Laws (Amendment) Act 2024, which had let large cases bypass the lower forums, was rolled back after the Lahore High Court held it was clogging the courts.
- Commissioner Inland Revenue (Appeals) - the first appeal against an assessment or order of a tax officer.
- Appellate Tribunal Inland Revenue (ATIR) - an independent tribunal under the Ministry of Law, the final forum on questions of fact.
- High Court reference - only on a question of law arising from the Tribunal's order.
- Supreme Court of Pakistan - a further appeal from the High Court's judgment.
Stage 1: Commissioner (Appeals) - section 127
Your first appeal against an assessment order, an amended assessment, a penalty order, or the rejection of a refund goes to the Commissioner Inland Revenue (Appeals), a senior FBR officer sitting in an appellate capacity. The governing provision is section 127 of the Income Tax Ordinance 2001.
- Deadline: file within 30 days of the date the order is served on you.
- Admitted tax first: the appeal is not admitted unless you have paid the tax due on the basis of your own return (the "admitted tax"). The disputed portion is what you are contesting.
- Fee and form: the appeal is filed on the prescribed form with the fee challan attached - the appeal is not validly filed until the fee is paid.
- Grounds: you must set out concise grounds of appeal and file the order appealed against.
Under section 129, the Commissioner (Appeals) must decide the appeal by a written order - confirming, modifying, or annulling the assessment - normally within 120 days of filing, extendable by a further period for reasons recorded. A late appeal can still be admitted if you satisfy the Commissioner that you were prevented by sufficient cause from filing in time (condonation of delay), but this is discretionary and never guaranteed.
Stage 2: Appellate Tribunal Inland Revenue - section 131
If the Commissioner (Appeals) rules against you - or only partly in your favour - the next step is the Appellate Tribunal Inland Revenue (ATIR) under section 131. The ATIR is a judicial tribunal independent of the FBR, operating under the Ministry of Law and Justice and its own ATIR Rules 2024. Either side can appeal: you against an adverse finding, or the Commissioner if the department loses.
- Deadline: file within 60 days of the date the Commissioner (Appeals) order is served.
- Final on facts: the Tribunal is the last forum that can re-examine the facts and evidence. Its findings of fact are, in principle, final.
- Decision timeline: the Tribunal is expected to decide within statutory timelines set by recent amendments - broadly within 90 days of a fresh appeal.
Because the Tribunal is the last word on facts, this is the stage where the factual record and documentary evidence must be watertight. New evidence is admitted only in limited circumstances, so build the case properly at the Commissioner (Appeals) stage.
Deadlines run from the date the order is served on you, not the date it was signed. Keep the envelope, the IRIS notification, and any dispatch record - proving the service date can decide whether your appeal is in time.
Stage 3: Reference to the High Court and beyond - section 133
An appeal to the Tribunal is generally the end of the road on facts. Beyond it, you can only challenge a question of law - a genuine legal issue arising from the Tribunal's order, not a disagreement about the numbers. This is done by a reference application to the High Court under section 133, filed within 90 days of the Tribunal's order. Both the taxpayer and the Commissioner have this right.
The High Court hears the reference on the framed question of law and delivers its judgment. If the decision goes against the department and results in a refund, the Commissioner may apply within 30 days for leave to appeal to the Supreme Court and ask the Court to withhold the refund until then. The final forum is an appeal to the Supreme Court of Pakistan. In parallel, some jurisdictional or fundamental-rights challenges can be taken to the High Court directly by constitutional petition, but that is an exception, not the normal appeal route.
Timeline, fees and forum at a glance
Here is the full appeal ladder for income tax, with the statute, the deadline, and where each appeal is filed. The same structure applies to sales tax (Sales Tax Act 1990) and federal excise (Federal Excise Act 2005) with parallel sections.
| Stage | Forum | Statute (ITO 2001) | Deadline to file | Scope |
|---|---|---|---|---|
| 1 | Commissioner (Appeals) | Section 127 | 30 days from service | Facts & law |
| 2 | Appellate Tribunal (ATIR) | Section 131 | 60 days from CIR(A) order | Facts & law (final on facts) |
| 3 | High Court (reference) | Section 133 | 90 days from ATIR order | Question of law only |
| 4 | Supreme Court | Constitution / SC Rules | Per Supreme Court rules | Question of law only |
A prescribed filing fee is payable at each of the first two forums, and it is higher for a company than for an individual or other person. The statutory fees have been revised upward by recent Finance Acts, and court fees apply separately at the reference stage. Because the exact figures change with each budget, treat the numbers below as indicative and confirm the current fee before you file:
| Forum | Company (indicative) | Individual / other (indicative) |
|---|---|---|
| Commissioner (Appeals) | up to PKR 20,000 | PKR 5,000 or less |
| Appellate Tribunal (ATIR) | up to PKR 20,000 | PKR 5,000 or less |
| High Court reference | Prescribed court fee per the Court Fees Act / High Court rules | |
These are statutory filing fees only. Professional fees for drafting grounds, appearing, and arguing the case are separate - speak to our tax team for a fixed quote on your matter.
Paying or staying the disputed demand
Filing an appeal does not automatically freeze the tax demand. The FBR can begin recovery of the disputed amount even while your appeal is pending, unless you obtain a stay. The safe course is to file, alongside the appeal, an application for stay of recovery before the Commissioner (Appeals) or the Tribunal. Both forums can grant a stay, often on conditions such as partial payment. Ignoring this can mean bank accounts attached or refunds adjusted before your appeal is even heard, so treat the stay application as part of the appeal, not an afterthought.
Giving your appeal the best chance
Most appeals are won or lost on procedure and record, not eloquence. The recurring mistakes we see:
- Missing the deadline. The 30-day and 60-day limits are strict. Diarise them from the service date, not the order date.
- Not paying the admitted tax. Your appeal to the Commissioner (Appeals) can be thrown out at the threshold if the tax due on your return is unpaid.
- Weak grounds. Vague grounds get little traction. Each ground should tie a specific error in the order to a section, rule, or judgment.
- Thin record at Stage 1. Because the Tribunal rarely admits fresh evidence, every document must go in at the Commissioner (Appeals) stage.
- No stay application. Leaving the demand unstayed invites recovery action mid-appeal.
If the underlying issue is a notice you have just received rather than a final order, deal with it early - our guide to FBR notices under sections 114, 122 and 176 explains how a strong reply can head off an unfavourable assessment before any appeal is needed.
Frequently asked questions
What is the first stage of a tax appeal in Pakistan?
The Commissioner Inland Revenue (Appeals) under section 127 of the Income Tax Ordinance 2001. File within 30 days of the order being served on you.
How long do I have to file a tax appeal?
30 days to the Commissioner (Appeals), then 60 days to the Appellate Tribunal from the Commissioner (Appeals) order. Late appeals need sufficient cause to be admitted.
Can I skip the Commissioner (Appeals) and go straight to the Tribunal?
No. The Finance Act 2025 restored the mandatory two-tier system from 1 July 2025, so both forums must be exhausted in order, whatever the amount in dispute.
Do I have to pay the disputed tax before appealing?
You must pay the tax admitted as due on your return. The disputed demand is not automatically stayed, so file a stay application with your appeal.
What is a tax reference to the High Court?
A challenge under section 133 on a question of law only, filed within 90 days of the Tribunal's order. A further appeal lies to the Supreme Court.
How much does a tax appeal cost?
A prescribed filing fee applies at each forum, higher for companies, plus court fees at the reference stage and your counsel's professional fees. The statutory figures are revised by recent Finance Acts, so verify the current amount.