Course: Taxation Management (8531)

Semester: Autumn, 2017

Level: M. Com
ASSIGNMENT No. 1

Q. 1 Tax is the major source of revenue for a government to run its operations. What
are some of the principles of taxation that should be adopted by a government
for designing an efficient and effective tax system?

Answer:
Some of the most important principles or characteristics of a good tax system are as follows: 1.
Productivity or Fiscal Adequacy 2. Elasticity of Taxation 3. Diversity 4. Taxation as in Instrument of

Economic Growth 5. Taxation as an Instrument for Improving Income Distribution 6. Taxation for
Ensuring Economic Stability.

Adam Smith viewed the problem of devising a good tax system chiefly from the viewpoint of devising
good tax payers. Taxation system should also be such that it meets the requirements of increasing

state activity and achieves the objectives the society has placed before it.

We explain below the characteristics and principles of a good tax system, especially in the context of

the developing countries:

1. Productivity or Fiscal Adequacy:

An important principle of a good tax system for a developing country is that it should yield adequate
amount of resources for the Government so that it should be able to perform its increasing welfare

and developmental activities. If the tax system fails to yield enough resources, the Government will
resort to deficit financing.

An excessive dose of deficit financing is bound to raise prices which are harmful for the society. To
make the tax system sufficiently productive it should be broad-based and both direct and indirect

taxes find place in it. Moreover, taxes should be progressive so that the revenue from them rises with
the increase in income of the people.

2. Elasticity of Taxation:

Another principle of taxation suitable for the developing countries is the principle of elasticity of

taxation. According to the concept of elasticity of the taxation system, as national income increases as
a result of economic growth, the Government revenue from taxes should also increase.

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In developing countries, the share of tax revenue as a proportion of national income is low as
compared to the developed countries. This share of tax revenue will rise as national income increases,

if the tax system is sufficiently elastic. Progressive taxation of income and wealth provides this
elasticity to the tax system. Impositions of higher indirect (axes on luxury goods having a high income

elasticity of demand also makes the tax system elastic.

3. Diversity:

A good tax system should follow the principle of diversity. This implies that there should not be a
single or a few taxes from which Government seeks to raise large revenue. This is because if a

Government tries to get large revenue from a single tax or few taxes, it will have to raise the rates of
taxation too high which will not only adversely affect the incentives to work, save and invest but also

encourage evasion of taxes.

Therefore, the tax system should be a multiple tax system with a large variety of taxes so that all those

who can contribute to the public revenue should be made to do so. This calls for a mix of various
direct and indirect taxes. With the diverse tax system, the principles of fiscal adequacy and equity will

also be better satisfied.

Commending diversity in the tax system Arthur Young writes, “If I were to define a good system of

taxation, it should be that of bearing lightly on an infinite number of points, heavily on none”.
Similarly, another expert of public finance writes, “Excessive reliance on any one base may produce

adverse economic effects because the rates may become too high. Therefore, a tax system may do
less economic damage if it raises moderate amounts from several bases rather than large amounts

from one or two.”

4. Taxation as in Instrument of Economic Growth:

In a developing economy such as ours, taxation should serve as an instrument of economic growth.
Economic growth is primarily a function of rate of capital formation. If in the development strategy

public sector has been assigned an eminent place, then capital formation in the public sector must
occur at a relatively higher rate.

This calls for mobilization of resources by the Government so as to finance capital formation in public
sector. Therefore, a good tax system for a developing country will be such as will enable the

Government to mobilise adequate resources for capital formation or economic growth.

This it can do in the following two ways:

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(a) Mobilisation of Economic Surplus:

An important principle for a developing country is that it should mobilise economic surplus found in

the economy. Economic surplus is the “surplus of national income over essential consumption”. It is
the task of taxation system that it should restrain non-essential or unproductive consumption through

appropriate system of progressive direct and indirect taxes and thereby mobilize economic surplus.

In an underdeveloped economy, there are particular economic sectors and classes of people where

the economic surplus is generally found and which therefore should receive the special attention of
tax authorities in such countries.

(b) Increase in the Intermental Saving Ratio:

A good tax system not only tries to mobilise the existing economic surplus but also seeks to raise it

with a view to mop up relatively greater amount of increase in national income for the purpose of
capital formation. Thus taxation in a developing economy has not only to restrain current

unproductive consumption but also to check the large increases in consumption when with the
increase in national income, economic surplus goes up.

This will ensure rise in the incremental or marginal saving ratio which is a prime determinant of
continuous economic growth. In other words, through the means of taxation consumption should not

be allowed to increase in proportion to increase in incomes.

Expansion in economic surplus accruing to the individuals should be mobilised and invested in the

public sector for further growth. Progressive income tax and indirect taxes on goods with higher
income elasticity will ensure this.

5. Taxation as an Instrument for Improving Income Distribution:

A good tax system for a developing economy should also serve as an instrument for reducing

economic inequalities. The purpose of a good tax system for a developing economy is not merely to
raise revenue for the Government but also to ensure that burden of taxes falls more on the rich.

This requires that the rates of progressive direct taxes on income, wealth, expenditure, capital gains
etc., must be sufficiently high. This objective of reducing income inequalities will be better served if a

good part of the tax revenue is used for poverty alleviation programmes.

6. Taxation for Ensuring Economic Stability:

A tax system must also ensure economic stability. Economic fluctuations have been a big problem in
the developed countries and for reducing these fluctuations taxation can play a useful role. For this
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purpose, tax system must have built-in-flexibility. To have built-in-flexibility, the taxation system must
be progressive in relation in the changes in national income.

This will ensure that when national income rises, an increasing part of the rise in income should
automatically accrue to the Government. On the other hand, when national income falls, as in a

recession or depression, the revenue obtained progressive from taxes will fall more rapidly than the
decline in national income.

Built-in-flexibility attained through progressive taxation ensures that when incomes are increasing
during the period of boom or inflation, the relatively greater amount of tax revenue accruing to

Government will moderate the increase in purchasing power with the people and aggregate demand
and thus help in keeping prices under check.

Likewise, under progressive taxation at times of depression or recession, tax revenue will fall faster
than the income so that purchasing power of the people does not fall as fast as their pre-tax income.

This will serve to check decline in economic activity.

However, in developing countries, the problem is more of restraining inflation so as to achieve price

stability. By discouraging or restraining consumption, especially of non-essential or unproductive type,

taxation can pay a useful role in controlling inflation in the developing countries.

Conclusion:

From the foregoing analysis, we conclude that in the world today taxation is called upon to achieve

several socio-economic objectives. It is not just a means of raising revenue for the limited functions of
the State. Neutrality principle of taxation, that is, leave them as you find them, no longer finds favour

with the modern economists. Tax system today has to play a more positive role. It is intended to bring
about rapid economic growth, reduce inequalities of incomes, promote stability and to achieve other

socio-economic objectives.

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Q. 2 To implement the provisions of the Income Tax Ordinance 2001 and to collect tax
from general public, the federal govt. has established the institution of the Federal
Board of Revenue (FBR). In FBR, many officers work to impellent the provisions of
the law including the Commissioner Inland Revenue (CIR) what are the powers and
functions of the CIR under the provisions of the Income Tax Ordinance 2001.

Answer:

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The Federal Board of Revenue (more commonly known by its initials as FBR) is a semi-autonomous
federal agency of Pakistan that is responsible for enforcing fiscal laws and collecting revenue for the

government of Pakistan. FBR has the responsibility for (i) formulation and administration of fiscal
policies, (ii) levy and collection of federal duties, taxes and other levies, and (iii) quasi-judicial function

of deciding Customs & taxation cases and appeals. FBR is perhaps the largest federal department in
Pakistan. FBR primarily operates through its main collection arms comprising Customs collectorates,

Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) across the country. FBR has two major
wings: the Inland Revenue & Customs. The Inland Revenue Service (formerly known as Income Tax

Department) administers domestic taxation including Sales Tax, Income Tax and Federal Excise Duties.
The Pakistan Customs Service administers import duties and other taxes collected at import stage, as

well regulates international trade with regard to prohibitions & restrictions imposed by the
government. For the purpose of collection of revenue and pursuing tax evaders, FBR's powers &

functions also include but are not limited to: carrying out inquiries and audits/investigations into the
tax affairs, commanding arrests, attachment as well as public auction of movable and immovable

assets of a non-compliant. Dr Muhammad Irshad is the current chairman of FBR.

The Federal Board of Revenue (FBR) has decided to take a policy decision on issuance of Free Tax

Number (FTN) to the government authorities including local government departments and Tehsil
Municipal authorities seeking tax exemptions on the basis of FTNs.

Sources told Business Recorder here on Monday that nearly 1000 government organisations,
departments, semi-government organisations, ministries, autonomous bodies and NGOs etc have

obtained the FTNs to avail tax exemptions.

The FBR’s field formations are facing difficulties in monitoring of withholding tax (WHT) in case of the

government authorities due to non-availability of FTNs to these institutions. In this regard, a policy
decision is required that, “at what level of hierarchy FTN should be issued. For example, in case of local

government whether FTN should be issued to the local government department or Tehsil Municipal
authorities or to an office at lower level”.

In order to ensure uniformity across the country, a consensus is needed among the FBR, Chief
Commissioners and other officials on the said issue. A video conference of Chief Commissioner is

scheduled on November 11 by FBR Member Information Technology (IT). The Chief Commissioners
Inland Revenue are expected to have a brain storming session with their team prior to the video

conference so that they come with firmed up ideas.

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When contacted, a tax expert said that the holders of the FTNs are exempted from tax, but they have
to withhold tax and deposit the same timely in the national exchequer. Even the holder of the FTN has

to operate as withholding agent. In case the exempted entities and departments like government
organisations/ministries with FTNs have been engaged in obtaining supplies and services, they are

liable to deduct the due amount of tax and deposit the same in the national exchequer. There are
many exempt departments, which have been engaged in earning income from rental property. These

organisations being withholding agents have to deduct and deposit the tax on rental income as
admissible under the relevant provisions of the Income Tax Ordinance 2001.

At the same time, exempt entity does not mean that he is not a withholding agent. The data of
government departments having FTNs would be analysed whether they are properly working as

withholding agents. It is the reasonability of the FBR to verify that the holders of FTNs being
withholding agents must deduct and deposit the deducted amount in the national kitty in the

prescribed time period under the law, tax expert added.

In September 2014, Regional Tax Office-III Karachi had informed the FBR that the persons having FTNs

are not required to obtain exemption certificate for “NIL” withholding from payments received under
various heads as per the provisions of Income Tax Ordinance, 2001. As per RTO, in view of provisions

of section 49(3) of the Income Tax Ordinance, 2001, “Any payment received by the Federal
Government, a Provincial Government or a Local Government shall not be liable to any collection or

deduction of advance tax”. Therefore, it is hereby clarified that person(s) having Free Tax Numbers are
not required to obtain exemption certificate for “NIL” withholding from payments received under

various heads as per the provisions of Income Tax Ordinance, 2001.

Therefore, the institution as such will not be required to obtain exemption. However, its employees as

individuals shall continue to be governed under section 114 read with section 116 of the Income Tax
Ordinance, 2001 and other relevant provisions of Income Tax Ordinance, 2001. The clarification was

issued on the specific request of the applicant as per applicable laws of the Income Tax Ordinance,
2001, the RTO added.

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Q. 3 The government has recently introduce the concept of filer and non-filer in the
withholding tax regime. Explain in detail the provisions of the Income Tax
Ordinance 2001 regarding the deduction and collection of withholding tax from
filer and non-filer on various transaction in Pakistan.

Answer:
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The Federal Board of Revenue (FBR) has announced the facility of electronic filing (e-filing) of declaration
is available to all taxpayers who have obtained the User ID, Password and PIN (i.e. e-Enrollment).

Following type of Taxpayers are required to e-file the income tax returns:

— All Companies

— All AOPs (Association of Persons)

— Sales Tax registered persons

— All Salaried Persons having taxable income greater than or equal to Rs.500,000 per year

— All income tax refund claimants

Income Tax Ordinance, 2001 pointed out in detail about the persons required to file income tax return:

114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a

return of income for a tax year, namely:–

a)every company;

(ab) every person (other than a company) whose taxable income for the year exceeds the maximum
amount that is not chargeable to tax under this Ordinance for the year; [or]]

(ac) any non-profit organization as defined in clause (36) of section 2;

(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;

(b) any person not covered by clause [(a), (ab), (ac) or (ad) who,—

(i) has been charged to tax in respect of any of the two preceding tax years;

(ii) claims a loss carried forward under this Ordinance for a tax year;

(iii) owns immovable property with a land area of two hundred and fifty square yards or more or owns

any flat located in areas falling within the municipal limits existing immediately before the
commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad

Capital Territory

(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating

area;

(v) owns a flat having covered area of two thousand square feet or more located in a rating area;

(vi) owns a motor vehicle having engine capacity above 1000 CC;

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(vii) has obtained National Tax Number; or

(viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill

exceeds rupees [five hundred thousand]; or

(ix) is a resident person registered with any chamber of commerce and industry or any trade or business

association or any market committee or any professional body including Pakistan Engineering Council,
Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of

Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan.

(1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three

hundred thousand but does not exceed rupees [four hundred thousand] in a tax year is also required to
furnish return of income from the tax year.

(2) A return of income –

(a) shall be in the prescribed form and shall be accompanied by such annexures, statements or

documents as may be prescribed;

(b) shall fully state all the relevant particulars or information as specified in the form of return, including

a declaration of the records kept by the taxpayer;

(c) shall be signed by the person, being an individual, or the person’s representative where section 172

applies;

(d) shall be accompanied with evidence of payment of due tax as per return of income; and

(e) shall be accompanied with a wealth statement as required under section 116.

(2A) A return of income filed electronically on the web or any magnetic media or any other computer

readable media as may be specified by the Board shall also be deemed to be a return for the purpose of
sub-section (1); and the Board may, by notification in the official Gazette, make rules for determining

eligibility of the data of such returns and e-intermediaries who will digitise the data of such returns and
transmit the same electronically to the Income Tax Department under their digital signatures and other

matters relating to electronic filing of returns, statements or documents, etc.

(3) The Commissioner may, by notice in writing, require a person, or a person’s representative, as the

case may be, to furnish a return of income by the date specified in the notice for a period of less than
twelve months, where –

(a) the person has died;

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(b) the person has become bankrupt or gone into liquidation;

(c) the person is about to leave Pakistan permanently;

(e) the Commissioner otherwise considers it appropriate to require such a return to be furnished.

(4) Subject to sub-section (5), the Commissioner may, by notice in writing, require any person who, in

the Commissioner’s opinion, is required to file a return of income under this section for a tax year or
assessment year but who has failed to do so to furnish a return of income for that year within thirty days

from the date of service of such notice or such longer or shorter period as may be specified in such
notice or as the Commissioner may allow.

(5) A notice under sub-section (4) may be issued in respect of one or more of the last five completed tax
years or assessment years.

(6) Subject to sub-section (6A), any person who, having furnished a return, discovers any omission or
wrong statement therein, may file revised return subject to the following conditions, namely: —

(a) it is accompanied by the revised accounts or revised audited accounts, as the case may be;

(b) the reasons for revision of return, in writing, duly signed, by the taxpayers are filed with the return;

(ba) it is accompanied by approval of the Commissioner in writing for revision of return; and

(c) taxable income declared is not less than and loss declared is not more than income or loss, as the

case may be, determined by an order issued under sections 121, 122, 122A, 122C, 129, 132, 133 or 221:-

Provided that if any of the above conditions is not fulfilled, the return furnished shall be treated as an

invalid return as if it had not been furnished.

(6A) If a taxpayer files a revised return voluntarily along with deposit of the amount of tax short paid or

amount of tax sought to be evaded along with the default surcharge, whenever it comes to his notice,
before receipt of notice under sections 177 or sub-section (9) of 122, no penalty shall be recovered from

him:

Provided that in case the taxpayer deposits the amount of tax as pointed out by the Commissioner

during the audit or before the issuance of notice under sub-section (9) of section 122, he shall deposit
the amount of tax sought to be evaded, the default surcharge and twenty-five per cent of the penalties

leviable under the Ordinance along with the revised return:

Provided further that in case the taxpayer revises the return after the issuance of a show cause notice

under sub-section (9) of section 122, he shall deposit the amount of tax sought to be evaded, default

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surcharge and fifty per cent of the leviable penalties under the Ordinance along with the revised return
and thereafter, the show cause notice shall stand abated.

(7) Every return purporting to be made or signed by, or on behalf of a person shall be treated as having
been duly made by the person or with the person’s authority until the person proves the contrary.

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Q. 4 Calculate the tax liability of Mr. Yousaf from the following data:

(Tax rates are given at the end of the assignment)

No. Item Amount
1. Basic Salary 60,000 per month
2. Conveyance allowance 8,000 per month
3. Utility allowance 2500 per month
4. Overtime 4,000 per month
5. House facility is provided to Mr. Yousaf.
His house rent allowance entitlement is
Rs.18,000 per month.
6. Medical expenses reimbursed 35,000 per annum
7. Computer allowance 4,000 per month
8. Loan of Rs. 8,00,000 from employer at
0% interest rate
9. Shares gifted to Mr. Yousaf by his Market value
employer Rs.45,000
10. Rent received from property 15,000 per month
11. Deductions claimed on property income:
Interest expense Rs.20,000, Depreciation
Rs.10,000
12. Income from vegetable store Rs.155,000 per
annum
13. Sale of shares of public company for
Rs.200,000 after 1 year of acquisition
(purchase price Rs.300,000)
14. Royalty received Rs.55,000
15. Zakat Paid Rs.20,000
16. Donation to a Prime Minister Relief Fund Rs.10,000
for Earthquake Victims
17. Withholding tax paid in the year Rs.55,000

Q. 5 The sales tax is imposed in Pakistan through the Sales Tax Act 1990 on the retail
price of the products. Keeping in pre-view the provisions of the Sales Tax Act 1990,
explain the followings points: (20)

a) Sales tax return

Answer:

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Sales Tax was a provincial subject at the time of partition. It was being administered in the
provinces of Punjab & Sindh as provincial levy. Sales tax was declared a federal subject in
1948 through the enactment of General Sales Tax Act, 1948 and in 1952, this levy was
transferred permanently to the Central Government. Sales tax was levied at the standard rate
of 6 pies per rupee at every stage whenever a sale was effected. The trading community
protested against this system, and this resulted in the enactment of Sales Tax Act 1951.

A system of licensed manufacturers & wholesalers was instituted whereby they were allowed
to purchase goods free of sales tax from each other and pay tax on sales to unlicensed
traders. Imports were chargeable to Sales Tax but the licensed manufacturers & wholesalers
were allowed to import goods without the payment of Sales Tax. Later on Sales Tax became
chargeable on locally produced & imported goods at the time of their sales & import,
respectively. The sales tax, was collected under the Finance Ordinance, 1956, on goods which
were chargeable to Central Excise Duty, as if it were a duty of Central Excise. In April 1981, by
virtue of an amendment in the Sales Tax act, 1951, the collection of Sales Tax on non-
excisable goods was also entrusted to the Central Excise Department.

In the late eighties the government decided to replace Sales Tax with the Value Added Tax in
the country as a part of its structural adjustment program which was undertaken to correct
anomalies & distortions both in our tax & non-tax regimes. Accordingly new enactment titled
Sales Tax Act 1990 replaced Sales Tax Act 1951 with effect from 1-11-1990.

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b) Sales tax appeals

Answer:

(1) Any person, including the Sales Tax Department aggrieved by any decision or order made
under this Act by an officer of Sales Tax below in rank than a Collector may, within thirty days
of the date of communication of such decision or order appeal to the Collector of Sales Tax
(Appeals):

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Provided that an appeal preferred after the expiry of thirty days may be admitted by the
Collector of Sales Tax (Appeals) if he is satisfied that the appellant has sufficient cause for not
preferring the appeal within the specified period :

Provided further that the appeal shall be accompanied by a fee of five hundred rupees to be
paid in such manner as the Board may prescribe.

(2) The Collector of Sales Tax (Appeals) may, after giving both parties to the appeal an
opportunity of being heard, pass such order as he thinks fit, confirming, varying, altering,
setting aside or annulling the decision or order appealed against:

Provided that the Collector of Sales Tax (Appeals) may also confirm, vary, alter, set aside or
annul the penalty imposed under this Act for reasons to be recorded in writing.

(2a) In deciding an appeal, the Collector of Sales Tax (Appeals) may make such further inquiry
as may be necessary but he shall not remand the case to an officer who made the order for
deciding it afresh.

(3) Any person desirous of filing an appeal under sub-section (1) against any decision or order
relating to any tax demanded or any penalty imposed under the Act shall, before filling, the
appeal, deposit the tax demanded and the penalty imposed.

Provided that, where in any case, the appellate authority is of the opinion that the deposit of
tax demanded or the penalty imposed is likely to cause undue hardship to the appellant, it
may dispense with such deposit subject to such conditions as it may deem fit to impose:

Provided further that in any particular case, the Collector of Sales Tax (Appeals) may direct
that pending decision of the appeal, the tax demanded or penalty imposed, shall be paid by
the appellant in suitable installments spreading over a period not exceeding six months from
the date or such direction.

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d) Input tax

Indirect tax (such as value added tax or VAT) levied on capital goods, raw materials, spare
parts, services etc., which a business consumes or uses in its operations.

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 {=============}

e) Output tax

Answer:

Ad valorem tax charged on the selling price of taxable goods or services, and is payable by
the customer. Value added tax (VAT) charged by businesses is an output tax that is
distinguished from the VAT paid by them, which is their input tax.

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f) Taxable supplies

Answer:

For VAT purposes, a taxable supply can be defined as a sale of taxable goods and/or a delivery of
taxable services. An importation of taxable goods is also a taxable supply. Taxable means that VAT is

applied on these transactions.

There are two VAT rates: the standard rate at 15% applied on most of goods and services imported

and sold in Seychelles, and the zero rate at 0% mainly applied on exports and a specific list of items as
per Schedule 2 of the Value Added Tax Act, 2010.

How does VAT apply on a taxable supply?

VAT on standard rated supplies - When making taxable supplies, VAT-registered businesses collect

VAT from their customers - on their sales - and have to remit it to SRC. In practice, VAT is included in
the sale price payable by the customer and shown on the VAT invoice issued by the VAT business.

For example when the sale price is SR115, the customer actually pays SR15 of VAT (SR100 x 15% = 15).
The price without VAT (VAT exclusive) is SR100.

VAT on zero-rated supplies - A VAT registered business making zero-rated supplies will charge VAT at
0% on the selling price. Technically, there is no VAT charged on the invoice, no VAT will be collected

from the customer and remitted to Seychelles Revenue Commission.

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Sales Tax Authorities

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(1) For carrying out the purposes of this Act, the State Government shall appoint an officer to
be called the Commissioner of Sales Tax.

(2) Likewise, the State Government may appoint a Special Commissioner and such number of
Additional Commissioners of Sales Tax, and such number of, -

(a) Joint Commissioners,

(b) Senior Deputy Commissioners,

(c) Deputy Commissioners,

(d) Assistant Commissioners,

(e) Sales Tax Officers, and

(f) other officers and persons, and give them such designations, as the Government deems
necessary.

(3) The Commissioner shall have jurisdiction over the whole of the State. All other officers
shall have jurisdiction over the whole of the State or over such local areas as the
Commissioner may, by notification in the Official Gazette, specify.

(4) The Commissioner shall have and exercise all the powers and perform all the duties,
conferred or imposed on the Commissioner by or under this Act, a Special Commissioner of
Sales Tax and the Additional Commissioner or Additional Commissioners of Sales Tax, if any
be appointed, shall, save as otherwise directed by the Commissioner by notification in
the Official Gazette, have and exercise, within his or their jurisdiction, all the powers and
perform all the duties, conferred or imposed on the Commissioner, by or under this Act.

(5) A Joint Commissioner shall, save as otherwise directed by the Commissioner by

notification in the Official Gazette, have and exercise, in the area within his jurisdiction, all the
powers, and shall perform all the duties, conferred or imposed on the Commissioner, by or
under this Act.

(6) Senior Deputy Commissioners, Deputy Commissioners, Assistant Commissioners, Sales Tax
Officers, other officers and persons shall, within their jurisdiction, exercise such of the powers
and perform such of the duties of the Commissioner under this Act, as the Commissioner

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may, subject to such conditions and restrictions as he may, by general or special order
impose, delegate to them either generally, or as respects any particular matter or class of
matters by an order notified in the Official Gazette.

(7) The State Government may, subject to such restrictions and conditions, if any, as it may
impose, by notification in the Official Gazette, delegate to the Commissioner the powers (not
being the powers of the appointment of a Special Commissioner or Additional Commissioner
or Joint Commissioner) conferred on the Government by sub-section (2).

(8) No person shall be entitled to call in question in any proceeding, any exercise of power
including the territorial jurisdiction of any officer or person appointed under sub-section (2),
after the expiry of the period of thirty days from the date of receipt by such person of any
communication, intimation, order or notice under this Act or under any earlier law, issued by
such officer or person. If within the period aforesaid, an application in writing in the
prescribed form raising an objection as to such exercise of power by or the jurisdiction of any
such officer or person is made to such officer or person, he shall refer the question to the
Commissioner, who shall, after giving the applicant a reasonable opportunity of being heard,
make an order determining the question. The order made by the Commissioner shall be final.

(9) All officers and persons appointed under sub-section (2) shall be subordinate to the
Commissioner; and the subordination of officers other than the Commissioner, and of
persons, amongst themselves shall be such as may be prescribed.

(10) The Commissioner may, from time to time, issue such instructions and directions as he
may deem fit to the authorities and officers subordinate to him for carrying out the purposes
of this Act, and such authorities and officers shall observe and follow such instructions and
directions of the Commissioner:

Provided that, no such instructions or directions shall be issued, -

(i) so as to require any authority to pass a particular order or to dispose of a particular case in
a particular manner; or

(ii) so as to interfere with the discretion of the appellate authorities in any particular case:

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Provided further that, if the Commissioner is of the opinion that it is necessary in the public
interest so to do, he may cause such instructions and directions to be published and
circulated for general information.

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