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Verification MEETING OF AUDIT REPORT 2013-14

IN RESPECT OF RTO MULTAN


HELD ON 02.02.2016 AT LAHORE
Non-levy of minimum tax u/s 113 on the income of certain persons
S.#
DP No.
Name of taxpayer Tax
Amount
Compliance by the department
Year
Involved
1.
4.4.1
Lyla Irshad Flour
2011
2.485
Show cause notice u/s 122(5A)
& General Mills
&
issued for compliance by
14490
2012
10.11.2015.
Multan
02.02.2016
Zone
The tax payer is running only flour
mill.Minimum tax was not
applicable on the tax papyer.
Copy of assessment order made
by the audit officer is enclosed.

2
14495

M/s. Crystal Feed


Industries

2011

9.621

Minimum tax u/s 113 charged


amounting to Rs. 3713823/including surcharge @15% and
initial penalty @ 5%.
Recovery under process.
02.02.2016
CIR(A) annulled the order vide AO
No 566 dated 21.01.2015.

Audit Remarks
29.10.2015

02.02.2016
The RTO
informed that
tax under
normal law has
been imposed
at Rs.
460587/- for
the tax year
2011. Further
reduction in tax
rate @ 80% is
applicable to
flour mills.
RTO is
requested to
pursue the
recovery under
intimation to
the Audit.
Assessment
amended u/s
122 (5A).
Recovery of
Rs. 3713823/is under
process.

02.02.2016
The RTO
informed that
the

DAC Directives
16.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

Commissioner
(A) has annulled
the assessment
order on the
ground that
reduction in tax
is available to
the taxpayer.
Copy of
appellate order
provided to the
audit.
Contention of
the department
may be
accepted.

Irregular reduction and short payment of Income Tax

3
14496/03

Moon Traders
Rice Mills

2011

0.812

While disposing of refund


application for the tax year 2011,
minimum tax was charged @ 1%.
Taxpayer preferred appeal and
Leraned CIT(A) annulled the
assessment with direction to follow
the SRO 657(1)/ 2012 dated:
24.01.2012.
Minimum tax u/s 113 @ 1%
instead of 0.20% as claimed by
the tax payer as per S.R.O
657(1)/2012 dated 24.01.2012
which is covered by clause (13)
part III, of second schedule to the
income tax ord, 2001.

03.12.2015
CIR(A)
annulled the
charging order
passed u/s
170(4) read
with u/s 113
with the
direction that
reduced rate of
section 113 on
rice mills is
applicable for
the tax year
2011 as well
where as in the

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

SRO
57(1)/2012
issued on
24.01.2012,
there is no
indication that
reduced rate
of 113 is
applicable for
tax year 2011
on rice mills.
REFER TO DAC
4

Sunshine Traders

2012

0.800

Show cause notice has been


issued.

Under process

Crystal Feed
Industries

2012

2.764

14496/03

Contested
As reduction in tax liability @
50% of the tax payable on
declared turnover is applicable
in the tax payers case is
covered under clause (14) of
the part III, of the second
schedule of the income tax
ord, 2001 inserted vide S.R.O
57(1)/ 2012 dated 24.01.2012.

29.10.2015
Departmental
contention
verified.

International Food
Industry

2010

1.554

14496/03

Contested. Prior to Finance Act,


2010, only companies were liable
to pay turnover tax u/s 113 of The
Income Tax Ordinance,2001.
Individual and AOP included in this
section by Finance Act, 2010
implementable from 01.07.2010
i.e. Tax Year 2011. Therefore,
individual and AOP were not liable
to pay tax u/s 113 in the Tax Year

29.10.2015
Departmental
contention
verified.

14496/03

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

2011

0.902

-do-

2012

0.900

Case rectified and tax demand of


Rs. 1380123/- charged and after
given the tax credit of electricity
bills u/s 235 amounting to Rs.
473183/- the balance tax payable
Rs. 906940/-.

Amna Food
Industries

2012

0.590

Minimum tax amounting to Rs.


1179791/- charged tax paid Rs.
589896/- balance payable Rs.
589896
02.02.2016
CIR(A) annulled the order vide AO
No 543 dated 11.03.2015

14496/03

8
14496/03

9
14496/03

2009.
Case rectified and tax demand of
Rs. 1381414/- charged and after
given the tax credit of electricity
bills u/s 235 amounting to Rs.
576492/- the balance tax payable
Rs. 804922/-.

-do-

29.10.2015
Case rectified
and demand of
Rs. 804922
created.
Recovery
under process.
29.10.2015
Case rectified
and demand of
Rs. 909640
created.
Recovery
under process.
29.10.2015
Assessment
amended u/s
122 (5A)
amount
recoverable Rs.
589896

02.02.2016
The RTO
informed that
the
Commissioner
(A) has annulled
the assessment
order on the
ground that
reduction in tax
is available to
the taxpayer.
Copy of
appellate order
provided to the
audit.
Contention of
the department

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

10

-do-

2011

0.942

14496/03

11

14162
Special
Zone

M/s. Hi Tech
Edible Oil Sahiwal

12

14167
Multan
Zone

Muhammad
Ramzan M/s.
Rustam Rehman
Floor General
Mills

2012

4.629

Minimum tax amounting to Rs.


1357708/- charged. Tax paid Rs.
416000/- balance payable Rs.
942000/-.
02.02.2016
CIR(A) annulled the order.
02.02.2016
CIR(A) annulled the order vide AO
No 978 dated 17.06.2015.

Show cause notice has been


issued.

Show cause notice has been


issued.

may be
accepted.
29.10.2015
Amended u/s
221 read with
122 (5A).
amount
recoverable
942000.

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

02.02.2016
The RTO
informed that
the
Commissioner
(A) has annulled
the assessment
order on the
ground that
reduction in tax
is available to
the taxpayer.
Copy of
appellate order
provided to the
audit.
Contention of
the department
may be
accepted.
29.10.2015
Compliance of
DAC directives
still awaited
since 2014.
-do-

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by

13

14091
Multan

3.388

Show cause notice has been


issued.
-do-

14

13961/32
Multan

M/s. Fatima
Fertilizer Co. Ltd
1791532-5

2012

233.244

Proceedings are underway.


-do-

15

13801
Sahiwal

Abdul Sattar C/o


A.B.Carriage,
Vehari

2011

4.628

16

-do-

M/s. Ittehad
Traders, Vehari

2011

0.933

Show cause notice u/s 122(5A)


was issued to the taxpayer.
Taxpayer has filed writ petition
No.3137/2012 in Lahore High
Court, Multan Bench, Multan
which has been dismissed.
Fresh hearing notice has been
issued for hearing on
06.11.2015.
Show cause notice u/s 122(5A)
have been issued to the taxpayer.
On receipt of reply of the taxpayer,
further report will be submitted.

Short levy of tax due to non-allocation of proportionate expenses


17
4.4.3
Blouch Cotton
2010
20.624
Show cause notice has been
Ginners
issued.
14417/ 23

Under process.

Under process.

29.10.2015
Compliance
of DAC
directives still
awaited since
2014.

31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

18

-do-

Karmanwalay
Model Industries

2010

2.026

Show cause notice has been


issued.

-do-

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

19

13963/12/43
Special Zone

M/s. Shujabad
Weaving Mills Ltd
2700524-7

2012

1.314

The taxpayer has been


confronted the observation of
audit authorities. Reply is still
awaited.

-do

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

20

13802
Sahiwal

M/s. Anmol
Corporation,
Pakpattan

2009

1.220

29.10.2015
Subjudice
before ATIR

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

21
22
23

-do-do-do-

-do-doM/s. Azam Raza


Corporation,
Pakpattan

2010
2011
2009

0.437
1.040
0.108

Charged Rs. 1219662/- on


27.03.2014. The taxpayer
preferred appeal before
learned CIT (A) who annulled
with direction. The
department filed 2nd appeal
before ATIR.
-do-doCharged Rs. 107828/- on
27.03.2014.
The
taxpayer
preferred
appeal
before
learned CIT (A) who annulled
with direction. Fresh notice
has been issued for hearing
on 05.11.2015.

-do-doThe RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

24

-do-

-do-

2010

0.210

-do-do29.10.2015
Case is under
process for
reassessment
on the
directives of
CIR(A).
-do-

25

-do-

Ch. Nazir Ahmad


& Co. Vehari

2010

0.095

29.10.2015
Subjudice
before ATIR

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and

Charged Rs. 210021/- on


27.03.2014.
The
taxpayer
preferred
appeal
before
learned CIT (A) who annulled
with direction. Fresh notice
has been issued for hearing
on 05.11.2015.
Charged Rs. 94696/- on
27.03.2014.
The
taxpayer
preferred
appeal
before
learned CIT (A) who annulled

-do-

with
direction.
The
department filed 2nd appeal
before ATIR.

report compliance to Audit/FBR by


31.01.2014

Non levy of tax on unexplained income u/s 111


26

4.4.4
14418/ 01,
05,06, 10,
28, Multan
Zone

Muhammad Iqbal
C/O Moon Traders
Rice Mills

2012

20.624

As per return of the taxpayer the


sales declared at Rs. 94655830/which is higher than the amount
of cash withdrawls worked out by
reverse back formula that is
92437333/-. Therefore
proceedings initiated u/s 122
(5A) dropped.
Show cause notice has been
issued.

29.10.2015
Departmental
contention
accepted.

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

Under process

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause

27

-do-

Farhan Arsalan
Karyana Merchant

2012

33.930

28

-do-

Multan Rice Mills

2012

148.670

Show cause notice has been


issued.

-do-

29

-do-

Amjad Farooq
Flour Mills

2009 to
2012

150.286

Show cause notice has been


issued.

-do-

30

-do-

Saleem Soap
Factory

24.744

Show cause notice has been


issued.

-do-

31

-do-

Qamar Tanning

45.715

Show cause notice has been

-do-

Company

issued.

32

-do-

Amna Food
Industries

2009 to
2012

35.410

02.02.2016
Tax Rs 853240 charged for the
tax year 2009 and show cause
for 2010 to 2012 issued.

33

-do-

Hamza General
Store

2012

0.700

The taxpayer declare foreign


remittance amounting to Rs.
2799767/- as exempt income in
tax year 2012. The taxpayer
revised the income tax return for
the tax year 2012 by declaring
following income
Business income= 344608/AOP share= 15700/Prize and prize bonds=
7068000/-.
The taxpayer already has shown
foreign remittance in the tax year
2011 and inadvertently shown in
tax year 2012.
Show cause notice u/s 122(5A)
have been issued to the
taxpayer on receipt of reply of
the taxpayer. Further report will
be submitted.

34
14164
Sahiwal

35
13962

M/s. Yousaf Oil


Mills (Pvt) Ltd

201
2

41.699

Case has been selected for Audit


U/s 214C by the Board for tax

02.02.2016
An amount of
Rs. 853240/charged for
the tax year
2009.
Recovery
awaited.
Assessment
for the tax
years 2010 to
2012 may be
expedited.
29.10.2015
Departmental
contention
verified &
accepted.

Under
process of

notice has been issued to the


taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the

Special

36

13965/04

37

2012

64.575

Show cause notice has been


issued.

-do-

Zafar and Co.

2011

4.265

Show cause notice u/s 122(5A)


have been issued to the
taxpayer for hearing on
06.11.2015. On receipt of reply
of the taxpayer, further report
will be submitted.
Show cause notice u/s 122(5A)
have been issued to the
taxpayer for hearing on
06.11.2015. On receipt of reply
of the taxpayer, further report
will be submitted.
Show cause notice u/s 122(5A)
have been issued to the
taxpayer for hearing on
06.11.2015. On receipt of reply
of the taxpayer, further report
will be submitted.
Statutory notices have been
issued and reply is awaited.

-do-

38

-do-

M/s. Sitara
Traders
Commission
Agent, Sahiwal

2011

10.956

39

-do-

M/s. New Sitara


Commission Shop,
Grain Market,
Sahiwal

2011

32.764

M/s AGRI
INTERNATIONAL
NTN - 2222859-4

2011

185.945

14089
Multan

Audit.

Various Taxpayers

13800
Sahiwal

40

year 2012. Audit proceedings are


underway.

-do-

-do-

-do-

Short levy of tax due to non taxation of income received under the head income from other Sources
41
4.4.5
M/s. Union cotton 2009
2.640
Contested

taxpayer. The DAC directed the RTO


to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

29.10.2015

The RTO informed

14163/07
Sahiwal

& Pressing
Factory, Sahiwal

42

-do-

-do-

2010

0.065

43

13808
Sahiwal

M/s. Crescent
Syndicate,
Sahiwal

2011

1.000

The taxpayer filed income tax manual


return for the tax year 2009 on
19.10.2009 declaring share from AOP at
Rs. 145285/- and other source exempt
income at Rs. 415000/-. Later on e-filed
the income tax return on 03.06.2010. the
taxpayer declared exempt income at Rs.
1056285/- inadvertently instead of Rs.
415000/-. The taxpayer efiled return has
duly been revised showing correct
exempt income of Rs. 415000/-.
Show cause notice u/s 122(5A) have
been issued to the taxpayer for hearing
on 04.11.2015. on receipt of reply of the
taxpayer. Further report will be
submitted.

Departmental
contention
verified &
accepted.

Under
process
-do-

Show cause notice has been issued.

44

-do-

M/s. Crescent
Carriers, Sahiwal

2011

1.000

Show cause notice has been issued.

-do-

that show cause


notice
has
been
issued
to
the
taxpayer. The DAC
directed the RTO to
complete
the
proceedings
and
report compliance to
Audit/FBR
by
31.01.2014
-do-

The RTO informed


that show cause
notice has been
issued to the
taxpayer. The DAC
directed the RTO to
complete the
proceedings and
report compliance to
Audit/FBR by
31.01.2014
The RTO informed
that show cause
notice has been
issued to the
taxpayer. The DAC
directed the RTO to
complete the
proceedings and
report compliance to
Audit/FBR by
31.01.2014

Short levy of tax due to inadmissible deduction/expenses


45
4.4.7
Kanzo AG
2012
19.011
14415
Multan
Zone

Non-realization of withholding tax u/s 161


46
4.4.9
Saleem Soap
2009 to
14498
Factory
2013
Multan
Zone

Show cause notice has been


issued.

Under
process

7.373

Show cause notice has been


issued.

-do-

47

14502
Multan
Zone

M/s. Sumaid
Ashraf Prop:
Aksa Tex Style
Industries
3428200-9

2010
2011 &
2012

0.796

Show cause notice has been


issued.

-do-

48

-do-

M/S. Solex Agro


Industries (AOP)
2277672-9

2011 &
2012

0.349

Show cause notice has been


issued.

-do-

49

14165/01
Sahiwal

M/s. Rizwan
Cotton Ginners

2009 to
2012

1.300

Show cause notice u/s 122(5A)


have been issued to the
taxpayer for hearing on
04.11.2015. on receipt of reply
of the taxpayer. Further report
will be submitted.

-do-

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

50

14094
Multan

Tuman
Enterprises

2008

0.182

Under process

-do-

51

13967/08/0
8 Special
Zone

M/s. Yousaf Oil


Mills (Pvt) Ltd
3901049

2012

11.988

Case has been selected for


audit by the Board u/s 214C.
Proceedings are under way.

Under
process of
Audit.

52

13959/07
Special
Zone

M/s. Shujaabad
Oil Mills (Pvt) Ltd

2012

2197154
4

Show cause notice has been


issued.

-do-

53

13959/07
Special
Zone

M/s. Rab Nawaz


Industries (Pvt)
Ltd

2012

1407200
0

Show cause notice has been


issued.

-do-

54

13959/07
Special
Zone

M/s.AAA
Doublers (Pvt)
Ltd

2010
2011

740352

Show cause notice has been


issued.

-do-

55

14492/27

Multan Rice
Mills

2011

0.818

Show cause notice has been


issued.

-do-

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

Loss of revenue for non-treating the tax collected or deducted as final tax u/s 169
56
4.4.10
M/s. Qadir Ghee
2012
5.078
Show cause notice has been
14497
Industries
issued.
Special

57

14500
Multan
Zone

Malik Enterprises

2008 to
2013

49.871

Contested
The taxpayer is manufacturer of
plastic products. He imports raw
material for its manufacturing and
tax deducted u/s 148 on import
which was accordingly issued in
the shape of refund. Copy of
orders are enclosed.
02.02.2016
Copies of exemption certificates
issued tot the taxpayer u/s 148
and tax profile to confirm that
taxpayer is a manufacturer are
enclosed as desired by audit
authorities.

-do-

Complete
record
alongwith
sales tax
registration
certificate be
produced.
03.12.2015
Department
has provided
copies of
orders passed
u/s 122(5A) for
the relevant
tax year and
reported that
tax payer is a
manufacturer
of plastic
products and
not a
commercial
importer.
Department
also reported
that
exemption
certificate u/s
148 on
reduced rate
was also

The RTO informed


notice has been
taxpayer. The DAC
to complete the
report compliance
31.01.2014
The RTO informed
notice has been
taxpayer. The DAC
to complete the
report compliance
31.01.2014

that show cause


issued to the
directed the RTO
proceedings and
to Audit/FBR by
that show cause
issued to the
directed the RTO
proceedings and
to Audit/FBR by

issued. Audit
requested
that
department to
provide the
exemption
certicates
issued to the
tax payer u/s
148 and
profile to
confirm that
tax payer is a
manufacturer.
02.02.2016
The requisite
document
regarding
exemption
certificates
and profile to
confirm that
taxpayer is a
manufacturer
provided to
the audit. The
RTO is
requested to
revisit the
case as the
ratio of
electricity is
1.2, 2% cost of
material used
however in
the same line
of production
it is 25 to 30 %
of the raw
material used.

Non-levy of default surcharge u/s 205


58
4.4.11
M/s. Habib
13804
Corporation,
Sahiwal
Chichawatni

59

-do-

M/s. Shahid Amin


Al Kareem cotton
Ginners,
Chichawatni

Incorrect grant of exemptions


60
4.4.13
M/s. Multan
13960/11/13 Educational
Special
Trust 2898158-8
Zone

2011

0.202

Charged and recovery notice u/s 138


has been issued to the taxpayer for
compliance by 04.11.2015.

Under
process

2011

0.113

Charged and recovery notice u/s 138


has been issued to the taxpayer for
compliance by 04.11.2015.

Under
process

2012

3.178

Show cause notice has been issued.

Under
process

61

13960/21
Special
Zone

M/s. Shujabad Oil


(Pvt) Ltd
1269760-0

2011
2012

35.000

Show cause notice has been issued.

Under
process

62

14088
Multan

M/s Madadgar
Welfare Society

2012

1.045

Audit observation is confronted to the


Taxpayer. Reply is still awaited.

Under
process

DAC directed the


RTO to get the
stance verified from
audit and report
compliance
to
Audit/FBR
by
31.01.2014.
DAC directed the
RTO to get the
stance verified from
audit and report
compliance
to
Audit/FBR
by
31.01.2014.

The RTO informed that


show cause notice has
been issued to the
taxpayer.
The
DAC
directed the RTO
to
complete
the
proceedings and report
compliance to Audit/FBR
by 31.01.2014
The RTO informed that
show cause notice has
been issued to the
taxpayer.
The
DAC
directed the RTO
to
complete
the
proceedings and report
compliance to Audit/FBR
by 31.01.2014
The RTO informed that
show cause notice has

NTN 1744266-4

63

13966/05/2
0 Special
Zone

M/s. Mian
Mukhtar A
Sheikh Trust
3351392-9

64

14092
Multan

M/s Munir
Arshad Memorial
Trust
NTN 1050725

2012

49.917

Short recovery of tax due to incorrect computation of tax


65
4.4.15
M/s Reliance
2007 to 5.635
14491
Commodities (Pvt) 2012
Special
Ltd

Audit observation is confronted to the


Taxpayer. Reply is still awaited.

Under
process

Show cause notice has been issued.

Under
process

Show cause notice has been


issued.

Under
process

been issued to the


taxpayer.
The
DAC
directed the RTO
to
complete
the
proceedings and report
compliance to Audit/FBR
by 31.01.2014
The RTO informed that
show cause notice has
been issued to the
taxpayer.
The
DAC
directed the RTO
to
complete
the
proceedings and report
compliance to Audit/FBR
by 31.01.2014
The RTO informed that
show cause notice has
been issued to the
taxpayer.
The
DAC
directed the RTO
to
complete
the
proceedings and report
compliance to Audit/FBR
by 31.01.2014

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014

Incorrect adjustment of tax on services


66
4.4.18
M/s. Ittefaq
2011
13805
Corporation
Sahiwal
Burewala

67

14096
Multan

M/s Aabpara
(Pvt) Ltd
NTN 3362037-7

2011
2012

0.282

Charged Rs. 266529/- and recovered


through cash payment. Copy of challan
is enclosed.

0.348

Contested
The tax deduction u/s 153 is not a final
tax for corporate cases.

Non-levy of income tax due to lack of vigilance by the department


68
4.4.20
M/s. Union Soap
2010
3.459
14252
factory
Multan
Zone

69

14416
Multan
Zone l

Saleem Soap
Factory

2009 to 2012

8.784

29.10.2015
Recovered Rs.
266529
through cash
payment.
Balance 15471
is not leviale.

DAC directed the


RTO to get the
stance verified from
audit and report
compliance
to
Audit/FBR
by
31.01.2014.
The DAC directed
the RTO to get its
stance verified from
audit by 31.01.2014.

Show cause notice has been issued.

Under
process

Show cause notice has been issued.

Under
process

The RTO informed


that show cause
notice
has
been
issued
to
the
taxpayer. The DAC
directed the RTO to
complete
the
proceedings
and
report compliance to
Audit/FBR
by
31.01.2014
The RTO informed
that show cause
notice
has
been
issued
to
the
taxpayer. The DAC
directed the RTO to
complete
the
proceedings
and
report compliance to
Audit/FBR
by
31.01.2014

Non-recovery of arrear demand


70

4.4.23
13806
Sahiwal

Rs.15.967 (M) has been taken into


minus
account.
Proceedings
for
liquidation/recovery out of arrear of
balance amount are under way.

Unlawful issuance of refund


71
4.5.1
Karmanwalay
14493
CNG
Multan
Zone

2012

0.233

72
14501
Special

73

14168
Sahiwal

M/s. Zafar Iqbal

2010 to
2012

0.103

Show cause notice has been


issued.

Under
process

Show cause notice has been


issued.

Under
process

Refund for the tax years 2008 to


2012 was issued to the taxpayer
vide order dated 18.04.2013
according to the provisions of
Income Tax Ordinance,
2001(copy enclosed). The
taxpayer is a salaried individual
and reinstated on his service by
SNGPL Lahore on 18.03.2010
and paid to him last three years
service benefits as
compensation on reinstatement

Complete
record may be
produced to
proceed
further.
03.12.2015
View point of
the
department is
already accept

DAC directed the


RTO to get the
stance verified from
audit and report
compliance
to
Audit/FBR
by
31.01.2014.

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
DAC directed the RTO to get the
stance verified from Audit and report
compliance
to
Audit/FBR
by
31.01.2014.

74

14168
Sahiwal

Saeed ul Hassan

2008 to
2012

0.114

in three installments but the


Deputy Chief Accounts Officer
deducted income tax u/s 149 on
current flat rates during the tax
years 2011 & 2012 instead of the
relevant years rates i.e. 2007 to
2010. The taxpayer revised/
submitted his income tax
returns electronically for the
relevant years alongwith
permission letter issued by the
Commissioner I.R, Sahiwal
Zone, Sahiwal vide No
CIR/SWL/816 dated:
28.02.2013(copy enclosed)
regarding opting tax rates of
corresponding years for which
arrear/salary received u/s 12(7)
of the income tax ordinance
2001.
Refund for the tax years 2008 to
2012 was issued to the taxpayer
vide order dated 18.04.2013
according to the provisions of
Income Tax Ordinance,
2001(copy enclosed). The
taxpayer is a salaried individual
and reinstated on his service by
SNGPL Lahore on 18.03.2010
and paid to him last three years
service benefits as
compensation on reinstatement
in three installments but the
Deputy Chief Accounts Officer
deducted income tax u/s 149 on
current flat rates during the tax
years 2011 & 2012 instead of the
relevant years rates i.e. 2007 to

in the
verification
report dated
28.01.2015.
contention of
the
department
may be
accepted.

03.12.2015
View point of
the
department is
already accept
in the
verification
report dated
28.01.2015.
contention of
the
department
may be
accepted.

DAC directed the RTO to get the


stance verified from Audit and report
compliance
to
Audit/FBR
by
31.01.2014.

2010. The taxpayer revised/


submitted his income tax
returns electronically for the
relevant years alongwith
permission letter issued by the
Commissioner I.R, Sahiwal
Zone, Sahiwal vide No
CIR/SWL/816 dated:
28.02.2013(copy enclosed)
regarding opting tax rates of
corresponding years for which
arrear/salary received u/s 12(7)
of the income tax ordinance
2001.
75

14168
Sahiwal

Jaan Muhammad

2008 to
2012

0.115

Refund for the tax years 2008 to


2012 was issued to the taxpayer
vide order dated 18.04.2013
according to the provisions of
Income Tax Ordinance,
2001(copy enclosed). The
taxpayer is a salaried individual
and reinstated on his service by
SNGPL Lahore on 18.03.2010
and paid to him last three years
service benefits as
compensation on reinstatement
in three installments but the
Deputy Chief Accounts Officer
deducted income tax u/s 149 on
current flat rates during the tax
years 2011 & 2012 instead of the
relevant years rates i.e. 2007 to
2010. The taxpayer revised/
submitted his income tax
returns electronically for the

03.12.2015
View point of
the
department is
already accept
in the
verification
report dated
28.01.2015.
contention of
the
department
may be
accepted.

DAC directed the RTO to get the


stance verified from Audit and report
compliance
to
Audit/FBR
by
31.01.2014.

relevant years alongwith


permission letter issued by the
Commissioner I.R, Sahiwal
Zone, Sahiwal vide No
CIR/SWL/816 dated:
28.02.2013(copy enclosed)
regarding opting tax rates of
corresponding years for which
arrear/salary received u/s 12(7)
of the income tax ordinance
2001.
76

14090
Multan

0.604

Show cause notice has been


issued.

Under
process

77

14166
Special
Zone

Contested. Refund issued


according to provisions of the
Income Tax Ordinance,2001.

Under
process

78

13807
Sahiwal

M/s. Crescent
Carriers, Sahiwal

2010

1.838

Show cause notice has been


issued.

Under
process

79

-do-

M/s. Crescent
Syndicate,
Sahiwal

2010

1.884

Show cause notice has been


issued.

Under
process

80

14562
Multan

Erection
Engineering
(Pvt)Ltd NTN
3245529-1

2011

0.998

The issue raised by the audit


authorities has been confronted to
the taxpayer. Reply is awaited.

Under
process

The RTO informed that show cause


notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
DAC directed the RTO to get the
stance verified from Audit and report
compliance
to
Audit/FBR
by
31.01.2014.
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by
31.01.2014
The RTO informed that show cause
notice has been issued to the
taxpayer. The DAC directed the RTO
to complete the proceedings and
report compliance to Audit/FBR by

81

14494/22

Muhammad Ali
Raza
NTN 3523521

13,450

Show cause notice has been


issued.

Under
process

82

Muhammad Ali
Raza
NTN 3523521

51,565

Show cause notice has been


issued.

Under
process

83

Muhammad Sharif
NTN 1552851

4,861,78
9

Show cause notice has been


issued.

Under
process

Excess determination of refund


84
4.5.2
M/s. Hi Tech
14489
Edible Oil Mills
Multan
2459120-3
Zone

85

-do-

2010

26.499

2012

21.678

Show cause notice has been issued.

31.01.2014
The RTO informed
notice has been
taxpayer. The DAC
to complete the
report compliance
31.01.2014
The RTO informed
notice has been
taxpayer. The DAC
to complete the
report compliance
31.01.2014
The RTO informed
notice has been
taxpayer. The DAC
to complete the
report compliance
31.01.2014

Under
process

that show cause


issued to the
directed the RTO
proceedings and
to Audit/FBR by
that show cause
issued to the
directed the RTO
proceedings and
to Audit/FBR by
that show cause
issued to the
directed the RTO
proceedings and
to Audit/FBR by

The RTO informed that show


cause notice has been issued
to the taxpayer. The DAC
directed the RTO to complete
the proceedings and report
compliance to Audit/FBR by
31.01.2014

Non realization of WWF


4.6.1
Crystal Feed
86
14499/02
Industry
& 18

2009 to
2011

0.102

As the issue involved in this case has


already been settled by the Honorable
High Court in the case reported as 2011
PTD 2643= 104 TAX 241= 2011 TAX
241 and in a judgment in writ Petition
No. 10617/2013 dated: 06.06.2013
wherein the amendments made in WW
Fund Ordinance, 1971 in the years 2006
& 2008 have been declared as
unconstitutional. Matter may please be
settled.
Show cause notice has been issued.

28.01.2015
Pending till
the decision
of APEX
Court

The RTO informed that show cause


notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014

-do-

The RTO informed that show cause


notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014
The RTO informed that show cause
notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014

87

-do-

Kanzo AG

2008 to
2012

0.422

88

-do-

International Food
Industry

2010
2011
2012

34130
32100
35533

02.02.2016
WWF of Rs 32100 charged and
recovered for tax year 2011.
Show cause notice has been issued for
the tax year 2010 and 2012.

89

-do-

Naeem Corporation
Cotton Pressing
Factory

2009 to
2012

0.892

Show cause notice has been issued.

02.02.2016
The RTO
informed
that WWF of
Rs.32100
for the tax
year 2011
has been
recovered d.
copy of
challan
provided.
Recovery of
balance
amount may
be
expedited.
-do-

90

-do-

Haji Muhammad
Siddique Cotton

2009 to
2012

2.200

Show cause notice has been issued.

-do-

The RTO informed that show cause


notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014
The RTO informed that show cause
notice has been issued to the taxpayer.

Ginners & Oil Mills

91

-do-

Lassani Cotton
Ginners

20112012

1.053

Show cause notice has been issued.

-do-

92

-do-

Balouch Cotton
Ginners

2009 to
2012

1.467

Show cause notice has been issued.

-do-

93

-do-

Farhan Irsalan
Karyana Merchant

2012

0.134

Show cause notice has been issued.

-do-

94

-do-

Karmanwalay
Model Industries

2010 to
2012

2.005

Show cause notice has been issued.

-do-

95

14169
Special

10.876

WWF has been charged & recovered.

96

13964/3&9
Special
Zone

Rana Brothers
Cotton Ginning
Sahiwal
M/S Zakariya
Enterparises (Pvt)
Ltd
NTN -1663202

1.111
3.247
1.291

Notice for non payment of WWF u/s 4(4)


of WWF Act, 1971 have been issued for
tax years 2010, 2011 & 2012 vide letter
Nos.690, 691, & 692 dated 02.12.2013.
In response thereto the taxpayer
requested for adjournment in all the
three years.
26.01.2015
Reply received from the taxpayer dated:
16.12.2013 detail is as under:Tax Year 2010
WWF has already charged vide order
dated 30.04.2011
Rs. 1,111,780
Refund claimed by the taxpayer

2010
2011
2012

28.01.2015
Pending till
the decision
of Apex
Court.

The DAC directed the RTO to complete


the proceedings and report compliance
to Audit/FBR by 31.01.2014
The RTO informed that show cause
notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014
The RTO informed that show cause
notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014
The RTO informed that show cause
notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014
The RTO informed that show cause
notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014
DAC directed the RTO to get the stance
verified
from
Audit
and
report
compliance to Audit/FBR by 31.01.2014.
The RTO informed that show cause
notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014

97

13964/3&9
Special
Zone

M/s. A&Z Oil (Pvt)


Ltd

2010
2011
2012

0.413
1.609
10440

For tax year 2010


Rs. 518,869
Balance WWF paid on
30.03.2011
Rs. 592,911
Total payments
Rs. 1,111,780
(Copy payment is enclosed)
Tax Year 2011
Show cause of WWF issued on
08.02.2012 for amount Rs. 3,247,249.
The taxpayer claimed adjustment of
WWF against refund for tax year 2011
Rs. 36,731,596 and also stated that
WWF is not leviable where tax
deduction at import stage on edible oil is
higher than normal taxation based on
receipt /sale or, *profit* declared for
taxation and also filed judgment of
Peshawar High Court reported as 94 tax
79.
Tax Year 2012
WWF @ 2% on profit Rs. 1291791
Claiming refund against tax deduction
u/s 148,235 & 236 Rs. 314,919/- and
also stated that WWF is not chargeable
in the light of Peshawar High Court
Judgment above.
WWF u/s 4(4) of WWF Act, 1971 have
already been charged as under:2010 Rs.1,248,227/2011 Rs. 1,577,578/2012 Rs. 1,367,933/WWF has already been charged and
adjusted against the refund for all the
three years (copies of challans are
enclosed).

28.01.2015
Pending till
the decision
of Apex
Court.

DAC directed the RTO to get the stance


verified
from
audit
and
report
compliance to Audit/FBR by 31.01.2014.

98

13964/3&9
Special
Zone

M/s Adam Milk


Food (Pvt) Ltd NTN
0786018-8

2012

49.946

WWF is not chargeable in the light of


Peshawar High Court Judgment above.

28.01.2015
Pending till
the decision
of Apex
Court.

The RTO informed that show cause


notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014

99

13964/3&9
Special
Zone

M/s AMI Ginning &


Oil Mills (Pvt) Ltd
NTN 0101000-0

2011
2012

0.734

WWF is not chargeable in the light of


Peshawar High Court Judgment above.

28.01.2015
Pending till
the decision
of Apex
Court.

The RTO informed that show cause


notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014

100

13964/3&9
Special
Zone

M/s Abdullah Textile


Mills (Pvt) Ltd NTN
2322076-7

0.522

2011
2012

28.01.2015
Pending till
the decision
of Apex
Court.

The RTO informed that the amount has


been charged. The DAC directed the
RTO to expedite the recovery and report
compliance by 31.01.2014.

101

13964/3&9
Special
Zone

M/s Tummon
Enterprises (Pvt)
Ltd. NTN 28217012

0.559

2008 to
2012

WWF Rs.522,000/- has been charged


vide order dated 23.09.2013.
As the issue involved in this case has
already been settled by the Honorable
High Court in the case reported as 2011
PTD 2643= 104 TAX 241= 2011 TAX
241 and in a judgment in writ Petition
No. 10617/2013 dated: 06.06.2013
wherein the amendments made in WW
Fund Ordinance, 1971 in the years 2006
& 2008 have been declared as
unconstitutional. Matter may please be
settled.
As the issue involved in this case has
already been settled by the Honorable
High Court in the case reported as 2011
PTD 2643= 104 TAX 241= 2011 TAX
241 and in a judgment in writ Petition
No. 10617/2013 dated: 06.06.2013
wherein the amendments made in WW
Fund Ordinance, 1971 in the years 2006
& 2008 have been declared as
unconstitutional. Matter may please be
settled.

28.01.2015
Pending till
the decision
of Apex
Court.

The RTO informed that show cause


notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014

102

13964/3&9
Special
Zone

M/s Ahmad Hassan


Textile Mills Ltd
NTN 0100978-8

3.352

2012

103

13964/3&9
Special
Zone

M/s Shujabad
Weaving Mills Ltd
NTN 2700524-7

7.646

2010 to
2012

104

13964/3&9
Special
Zone

M/s ABCO
Technical (Pvt) Ltd.
NTN 1560533-7

1.737

2009 to
2012

Charged Rs.3352284/- vide DCR


No.3/131 dated 02.09.2013 (Copy
enclosed). The taxpayer company has
filed writ before the Hble Court Multan
Bench Multan vide WP No.12400/2003.
Demand Stayed.
As the issue involved in this case has
already been settled by the Honorable
High Court in the case reported as 2011
PTD 2643= 104 TAX 241= 2011 TAX
241 and in a judgment in writ Petition
No. 10617/2013 dated: 06.06.2013
wherein the amendments made in WW
Fund Ordinance, 1971 in the years 2006
& 2008 have been declared as
unconstitutional. Matter may please be
settled.
Charged Rs.2126008/-, Rs.2535583/and Rs.3013206/- Total Rs.7674798/-)
vide DCR No.26,27 & 28/131 dated
06.09.2013 (Copies of order enclosed).
As the issue involved in this case has
already been settled by the Honorable
High Court in the case reported as 2011
PTD 2643= 104 TAX 241= 2011 TAX
241 and in a judgment in writ Petition
No. 10617/2013 dated: 06.06.2013
wherein the amendments made in WW
Fund Ordinance, 1971 in the years 2006
& 2008 have been declared as
unconstitutional. Matter may please be
settled.
Total amount has been adjusted against
refund for the tax year 2013.

28.01.2015
Pending till
the decision
of Apex
Court.

The RTO informed that the amount has


been charged. The DAC directed the
RTO to expedite the recovery and report
compliance by 31.01.2014.

28.01.2015
Pending till
the decision
of Apex
Court.

The RTO informed that the amount has


been charged. The DAC directed the
RTO to expedite the recovery and report
compliance by 31.01.2014.

28.01.2015
Pending till
the decision
of Apex
Court.

The RTO informed that show cause


notice has been issued to the taxpayer.
The DAC directed the RTO to complete
the proceedings and report compliance
to Audit/FBR by 31.01.2014