Updated Special Zone

DAC AUDIT REPORT 2015-16 IN RESPECT OF REGIONAL TAX OFFICE, MULTAN
(HELD ON 26.01.2016 AT LAHORE)

Non/Short- Realization Of With Holding Tax on Royalty/ Fee for Technical Service Rs 101.296 Million
S.
#
DP/Pa
ra #
15916/
4
Special
Zone
Taxpayer Name And

NTN
M/S CNH Global N.V ,
Multan 3063429-6
Audit Observations
M/S Fatima Fertilizer

Company Ltd Multan
1791532-5
Non-Realization Of Income Tax

Due To Concealment Of Sales
Rs 1,255.919
Tax
Year
2009 To
2014
Amount
Involved
101295891
2013
2014
1,236,751,648
Non/Short- Realization Of With

Holding Tax On Royalty/ Fee
For Technical Service Rs
101.296 Million
Non-Realization of Income Tax Due To Concealment Of Sales Rs 1,255.919
15917/1
Special
Zone
M/S Prime Feeds

(Private) Limited,
Bearing 418047-6
-Do-
M/S Shiekho Sugar

Mills Limited Multan
0225964-8
-Do-
16,596,890
2014
651,839
Departmental Compliance
The paras pertain to Withholding Zone. Paras are being
transferred to Withholding Zone on the point of
jurisdiction.
The DCIR E & C Unit-04, Multan has confronted the

audit observations to the taxpayer company vide letter
No.668 dated 07.01.2016 for compliance BY 22.01.2016.
Further progress would be reported after receipt of reply.
The audit observation has been confronted to the
taxpayer company by the DCIR E & C Unit-02, Multan
vide letter No.1312 dated 28-12-2015
DAC Directives
Short Realization of Income Tax on Export Sale Rs 3.697

15918/
8
Special
Zone
M/S Ahmad Hassan Textile Limited Bearing

0100987
Short Realization Of
Income Tax On Expert
Sale Rs 3.697
2013
3.697
The audit observation has been

confronted to the taxpayer company
by the DCIR E & C Unit-03, Multan
vide letter No.1368 dated 13-01-15.
The taxpayer company has been
requested to furnish written reply by
20-01-2015.
1037500
Notice u/s 138(1) has been issued by

the DCIR E & C Unit-06, Multan
Non-Recovery Of Arrears Of Income Tax Rs 501.387 Million

15919/
9
Special
Zone
Allah Bakhsh S/O Allah Dittah
Non-Recovery Of Arrears
Of Income Tax Rs
501.387 Million
Allah Bakhsh S/O Allah Dittah C/O Crystal

Mall, Bosan Road Multan
-Do-
2011
1062500

Wajahat Naeem Poori C/O Pace N Pace Multan
-Do-
2013
1147500

Mumtaz Hussain C/O Pace N Pace Multan
-Do-
2013
1147500

Mudassar Hussain C/O Pace N Pace Multan
-Do-
2013
1147500

Asghar Ali C/O Pace N Pace Multan
-Do-
2013
1147500

-Do-
2014
1232500

-Do-
2014
1232500

-Do-
2014
1232500

-Do-
2014
1232500

M/S Fatima Sugar Mills Ltd Multan
-Do-
2012
1286386
Pending in 1st appeal before the

CIR(A) Multan.
-Do-
2010
1425000

-Do-
2011
1425000

-Do-
2012
1425000

-Do-
2010
1425000

-Do-
2011
1425000

-Do-
2012
1425000

-Do-
2010
1425000

-Do-
2011
1425000

-Do-
2012
1425000

-Do-
2010
1425000

-Do-
2011
1425000

-Do-
2012
1425000

Masood Spinning Mills Ltd Meher Manzil O/S

Lohari Gate Multan
-Do-
2009
1895135
Fazal Rehman Fabric Ltd 1-Km Qadir Pur

Rawan Bypass Multan
-Do-
2009
2204908
Qadir Ghee Inds Pvt Ltd Vehari Road Multan
-Do-
2011
3028381
Against the demand of WWF, the

taxpayer company has preferred writ
petition before the Honourable
Lahore High Court Multan Bench
and the Honourable High Court has
granted stay vide order dated
28-05-2014 till next date of hearing.
Sub judice
Sub judice
The Honourable High Court has
stayed the demand in Writ Petition
No.14354/2015
Qadir Ghee Inds Pvt Ltd Vehari Road Multan
-Do-
2013
3094823
The Honourable High Court has

stayed the demand in Writ Petition
No.14354/2015
Maqbool Solvent Pvt Ltd Khanewal Road

Multan
-Do-
2009
3852160
The Learned CIR(A) has cancelled

the order passed u/s 122(5A) in
Appeal No.86 dated 13-10-2015.
Shujaabad Weaving Mills Ltd 2-Km Qadir Pur

Rawan Bypass Lahore Road Multan
-Do-
2012
5570407
M/S Ghousia Ghee Inds Pvt Ltd Dg Khan
-Do-
2009
6423802
Fatima Fertilizer Co Multan
-Do-
2012
7312399
The Honourable High Court vide

order dated 08-04-2015 in Writ
Petition No.5013/2015 directed not
to take coercive measures .
Recovered demand of Rs.6423802/vide CPR
No.2015100121391005751 dated
13-12-2015
Notice u/s 138(1) has been issued for
recovery of outstanding arrear
demand.
Hexon Chemical Pvt Ltd Multan
-Do-
2009
8079611
Order annulled by the CIR(A).

Demand has accordingly been taken
to (-) account.
Maqbool Textile Mills Ltd 24/3 Tufail Shaheed

Road Multan Cant Total
-Do-
2009 to
2012
9667569
Fazal Rehman Fabric Ltd 1-Km Qadir Pur

Rawan Bypass Multan Total
-Do-
The learned appellate Tribunal

granted stay on 28-08-2014 for a
period of 30 days or till decision of
appeals whichever is earlier.
Sub judice
11068026
Colony Mills Ltd P.O Asmailabad Sher Shah

Road Multan Total
-Do-
12631560
Roomi Fabrics Ltd Meher Manzil O/S Lohari

Gate Multan Total
-Do-
14959696
Masood Spinning Mills Ltd Meher Manzil O/S

Lohari Gate Multan Total
-Do-
15229901
Hafeez Ghee And General Mills Pvt Ltd Multan
-Do-
Masood Fabrics Ltd Meher Manzil O/S Lohari

Gate Multan Total
-Do-
22024184
Stayed by the Honourable High

Court
in
writ
petition
No.11656/2013
Reliance Weaving Mills Ltd 1st Floor Trust Plaza

Lmq Road Multan Total
-Do-
26229546
The Learned Appellate Tribunal vide

order ITA No.314/LB/2014, 315 &
316 dated 04-05-2015 vacated the
order of the Taxation Officer and
annulled the order of the Learned
CIR(A) Multan. Para may be settled.
2010
19865557
The Learned Appellate Tribunal vide

order dated 05-05-2014 directed the
department to restrain from taking
coercive measure against the
taxpayer.
Stayed by the Honourable High
Court
in
writ
petition
No.11654/2013
Sub judice
The taxpayer company has preferred
1st appeal before the forum of
Learned CIR(A) Multan.
M/S Yousaf Oil Mills Multan
-Do-
2009
31852025
The case has been remanded back to

CIR(A) by the Appellate Tribunal
Ali Murad M/S Pace N Pace Panda Cash Carry

Chungi No. 6 Multan
-Do-
2013
40961447
Order annulled by the CIR(A) vide

A.O.No.10 dated 13-10-2015
Hoor Oil Inds Pvt Ltd Vehari Road Multan
-Do-
2009
46866692
The
learned
CIR(A)
vide
A.O.No.191 dated 15-09-2015 has
cancelled the order.
M/S Al Hilal Indus Ltd Multan
-Do-
2010
50150989
Mehmood Textile Mills Ltd Meher Manzil O/S

Lohari Gate Multan Total
-Do-
In the light of CIR(A) order No.927

dated 30-06-2015, demand of
RS.50,150,989/- has been taken (-)
account.
Stayed by Honourable High Court in
Writ Petition No.11652/2013
M/S Malik Brothers Band Bosan Road Multan
-Do-
54826138
2010
73586220
Original demand was created U/S

122 at Rs.7,358,620/- instead of
Rs.73586220/-. The taxpayer filed
return of total income for the tax
year
2010
on
23.07.2015,
accordingly demand created at
Rs.7,358,620/- has taken to (-)
account. No demand is payable at
present.
Short Realization Of Income Tax Due To Concealment Of Imported And Domestic Raw Material Rs. 264.244 Million
15921/2
Special
Zone
Prime Feeds Pvt Ltd Bearing

NTN 4180471-6
Short
Realization Of
Income Tax Due
To Concealment
Of Imported
And Domestic
Raw Material
Rs. 264.244
Million
2014
49790638
The DCIR E & C Unit-04, Multan has

confronted the audit observations to the
taxpayer company vide letter No.670 dated
07.01.2016 for compliance BY 22.01.2016.
Further progress would be reported after
receipt of reply
M/S Ahmad Hassan Textile

Mills Ltd Bearing NTN
0100978
-Do-
2014
201640352
The audit observation has been confronted to

the taxpayer company by the DCIR E & C
Unit-03, Multan vide letter No.1368 dated 1301-15. The taxpayer company has been
requested to furnish written reply by
20-01-2015.
M/S Seher Board Pvt Ltd

bearing NTN 1285754
-Do-
2014
588080728
M/S Arafat Oil Inds Pvt Ltd

Bearing NTN 1438693
-Do-
2014
6932450
M/S Asjad Textile Pvt Ltd

Bearing NTN 0663239
-Do-
2014
30090912
Non Recovery Of Workers Welfare Fund Rs. 250,255,310
15922/3
Special Zone
M/S Fateh Textile Industry

Pvt Ltd NTN 1521332
-Do-
2014
280214
As per taxpayers registration profile, the

taxpayer company falls within the jurisdiction
of RTO Faisalabad having business address at
6KM Satiana Road Faisalabad.
As per judgment pronounced by the
Honourable Judge Syed Mansoor Ali Shah
Lahore High Court, WWF is not chargeable.
M/S Ahmad Hassan Textile

Mills Ltd NTN 0100978
-Do-
2014
599081
M/S Adam Milk Food Pvt

Ltd NTN 0786018
-Do-
2014
985731
Charged WWF at Rs.985731/-
M/S Shabbier Chicks Pvt Ltd

NTN 3246516
-Do-
2014
991550
Under process
M/S Fatima Fertilizer Co Ltd

Multan NTN 1791532-5
-Do-
2014
245616170
M/S General Cane Inds Pvt

Ltd NTN 3037512-6
-Do-
2014
9900
M/S Aleem Cane Pvt Ltd

NTN 3179068-2
-Do-
2014
23009
M/S High Tech Edible Oil

Mills Pvt Ltd NTN 2459120
-Do-
2014
635252
WWF charged at Rs.635,252/- vide DCR

No.1/61 dated 31-12-2015
M/S Khawaja Mineral Ind

Pvt Ltd NTN 3069220
-Do-
2014
26924
M/S Prime Feeds (Private)

Limited, Bearing
NTN 4180471-6
-Do-
2014
62738

receipt of reply
The taxpayer company declared income at

Rs.495,022/- for the tax year 2014. Since
income declared is less than Rs.500,000/therefore provisions of WWF are not
attracted. Para contested.
Irregular Sanction of Income Tax Refund Rs 3.891
15925/7
Special
Zone
M/S Coslab Pvt Ltd , Multan

City 1451959-3
Irregular
Sanction Of
Income Tax
Refund Rs
3.891
2013
3891110
The audit observations are general in nature,

however, the audit observation is replied
hereunder:
1.It has been intimated that verification of
challans of deductions of Income Tax u/s 148
have not been got verified by the Manager
PRAL Multan. In this regard it is informed
that as per order u/s 170(4), the DCIR has
clearly mentioned that vide letter No.55 dated
02-09-2014, the Manager PRAL was
requested to verify the tax deducted u/s 148 .
However, no compliance was made. However,
the Officer managed to verify the tax
deductions through on line system as the
matter was of most importance due to the
reasons that the Honourable FTO in complaint
No.175/FSD/IT(117)/1171/2014 dated 15-092014 had directed to take timely action till
moved the discrepancy and decide the refund
claim on merit within the time limit of 60 days
prescribed u/s 170(4) of the Ordinance.
2. It was observed by the audit authorities that
no original electricity/telephone bills and
original tax payment challan for tax deduction
u/s 148 were produced. In this regard it is
hereby intimated that the Refund Issuing
Officer has produced reply of the taxpayer
company and the company had intimated that
the documents on the original had already
been furnished on 08-12-2014.
3. It was further observed by the audit that
some raw materials were not related to
manufacturing of plastic bottles and beauty
soaps. In the body of order passed u/s 170 the
Officer has confronted this issue to the
taxpayer company and accordingly effect of
tax deducted u/s 148 on raw material which
was not related to business activities has not
been given. After disallowing tax deduction
u/s 148 at Rs.852,124/- effect of payment u/s
148 was given at Rs. 4,776,968/-.
Since no irregularity has been
Non Realization Of Minimum Tax Rs 16.297 Million

15926/6
Special
Zone
M/S Prime Feeds (Private)

Limited 4180471-6
M/S Toyota Multan Motors

(Pvt) Ltd. Multan 2541010-5
Non Realization
Of Minimum
Tax Rs 16.297
Million
2014
4213016
-Do-
2014
9985561
Short Payment Of Income Tax Due To Concealment Of Stocks Rs 70.985

15927/5
Special
Zone
Aleem Can Pvt Ltd 3179068
M/S Pak Arab Fertilizers

Limited 0786750
Short Payment
Of Income Tax
Due To
Concealment Of
Stocks Rs
70.985
-Do-
2014
11253416
2014
59731540

receipt of reply

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DAC AUDIT REPORT 2015-16 IN RESPECT OF REGIONAL TAX OFFICE, MULTAN

(HELD ON 26.01.2016 AT LAHORE)

Taxpayer Name And

M/S Fatima Fertilizer

Non-Realization Of Income Tax

Non/Short- Realization Of With

M/S Prime Feeds

M/S Shiekho Sugar

The DCIR E & C Unit-04, Multan has confronted the

Short Realization of Income Tax on Export Sale Rs 3.697

M/S Ahmad Hassan Textile Limited Bearing

The audit observation has been

Notice u/s 138(1) has been issued by

Non-Recovery Of Arrears Of Income Tax Rs 501.387 Million

Allah Bakhsh S/O Allah Dittah

Allah Bakhsh S/O Allah Dittah C/O Crystal

Notice u/s 138(1) has been issued by

Wajahat Naeem Poori C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mumtaz Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mudassar Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Asghar Ali C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Wajahat Naeem Poori C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mumtaz Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Asghar Ali C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mudassar Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

M/S Fatima Sugar Mills Ltd Multan

Pending in 1st appeal before the

Wajahat Naeem Poori C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Wajahat Naeem Poori C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Wajahat Naeem Poori C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mumtaz Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mumtaz Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mumtaz Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mudassar Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mudassar Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Mudassar Hussain C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Asghar Ali C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Asghar Ali C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Asghar Ali C/O Pace N Pace Multan

Notice u/s 138(1) has been issued by

Masood Spinning Mills Ltd Meher Manzil O/S

Fazal Rehman Fabric Ltd 1-Km Qadir Pur

Qadir Ghee Inds Pvt Ltd Vehari Road Multan

Against the demand of WWF, the