The Appellate Tribunal Inland Revenue (ATIR) in Islamabad has ruled against an appeal filed by an overseas Pakistani, dismissing the case on procedural grounds. The appeal was rejected primarily because the Power of Attorney (POA) and affidavit submitted as part of the appeal included electronically scanned signatures, which do not meet the legal requirements for filing an appeal. This decision has significant implications for overseas Pakistanis seeking to engage in legal processes through electronic means.
The two-member bench of the ATIR Division Bench-I issued a directive stating that appeals from non-residents would be dismissed at the initial stage if the POA or affidavit attached to the appeal carries electronically scanned signatures. The bench clarified that, according to the prescribed legal procedure, the POA must bear the appellant’s handwritten signature and verification, otherwise, the appeal cannot be considered properly filed. This ruling highlighted that filing an appeal is a distinct legal action and requires explicit authorization in the POA, not just a general grant of power.
In this particular case, the overseas Pakistani appellant, a non-resident individual, had filed the appeal against Federal Board of Revenue (FBR) after being selected for an audit. The taxpayer had initially filed an electronic return of income for the tax year, declaring an income of Rs9,285,590. FBR, exercising its powers under Section 214C of the Income Tax Ordinance, selected the case for audit and issued an intimation via the IRIS system. The taxpayer responded by submitting an online reply with supporting documents, which FBR deemed unsatisfactory. As a result, an order under Section 122(1) was issued, prompting the taxpayer to challenge it before the ATIR.
The appellant’s representative argued that the taxpayer, being a non-resident, had filed the appeal from abroad, and thus, the use of scanned signatures was the only feasible option. However, the ATIR noted that while the POA authorized the chartered accountancy firm to represent the appellant, it did not explicitly empower them to file the appeal. The tribunal emphasized that the filing of an appeal is a distinct legal action, and such a step must be clearly authorized within the POA.
Furthermore, the ATIR pointed out that the appeal was not filed within the prescribed time limit, and the appellant had submitted an application for condonation of delay. However, both the application and the affidavit were signed with electronically scanned signatures, which the tribunal considered non-compliant with legal standards. Despite the POA being signed by two witnesses and attested by the Notary Public of Islamabad, the use of scanned signatures raised concerns about the procedural integrity of the appeal.
This ruling underscores the importance of adhering to legal formalities when filing appeals and submitting documents to government authorities in Pakistan. The ATIR’s decision is particularly relevant for overseas Pakistanis who may encounter difficulties in fulfilling these requirements due to their physical absence from the country. It highlights the need for individuals to ensure that all signatures on legal documents are original and meet the necessary legal criteria to avoid delays or rejections in the appeal process. The case serves as a reminder that legal procedures must be followed meticulously, even in the digital age, to ensure fair and timely resolution of disputes.
