Audit Report 2013-14 02.02.2016

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

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

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

31.01.2014
31.01.2014

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
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

31.01.2014
31.01.2014
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
No 978 dated 17.06.2015.

issued.

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

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-

31.01.2014
13
14091
Multan
3.388

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

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.
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
Ginners
issued.
14417/ 23
Under process.
Under process.
29.10.2015
Compliance
of DAC
directives still
awaited since
2014.
31.01.2014
31.01.2014
31.01.2014
31.01.2014

31.01.2014

31.01.2014
18
-do-
Karmanwalay
Model Industries
2010
2.026

issued.
-do-

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

31.01.2014
20
13802
Sahiwal
M/s. Anmol
Corporation,
Pakpattan
2009
1.220
29.10.2015
Subjudice
before ATIR

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
with direction. Fresh notice
has been issued for hearing
on 05.11.2015.
-do-doThe RTO informed that show cause

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


27.03.2014.
The
taxpayer
preferred
appeal
before
with direction. Fresh notice
has been issued for hearing
on 05.11.2015.
27.03.2014.
The
taxpayer
preferred
appeal
before
-do-
with
direction.
The
department filed 2nd appeal
before ATIR.

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.
issued.
29.10.2015
Departmental
contention
accepted.

31.01.2014
Under process

31.01.2014
31.01.2014
31.01.2014
31.01.2014
27
-do-
Farhan Arsalan
Karyana Merchant
2012
33.930
28
-do-
Multan Rice Mills
2012
148.670

issued.
-do-
29
-do-
Amjad Farooq
Flour Mills
2009 to
2012
150.286

issued.
-do-
30
-do-
Saleem Soap
Factory
24.744

issued.
-do-
31
-do-
Qamar Tanning
45.715
-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.
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

31.01.2014
31.01.2014

31.01.2014

31.01.2014
Special
36
13965/04
37
2012
64.575

issued.
-do-
Zafar and Co.
2011
4.265

taxpayer for hearing on
06.11.2015. On receipt of reply
of the taxpayer, further report
will be submitted.
will be submitted.
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

31.01.2014
31.01.2014
31.01.2014
31.01.2014
31.01.2014
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
-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
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
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

issued.
Under
process
7.373

issued.
-do-
47
14502
Multan
Zone
M/s. Sumaid
Ashraf Prop:
Aksa Tex Style
Industries
3428200-9
2010
2011 &
2012
0.796

issued.
-do-
48
-do-
M/S. Solex Agro

Industries (AOP)
2277672-9
2011 &
2012
0.349

issued.
-do-
49
14165/01
Sahiwal
M/s. Rizwan
Cotton Ginners
2009 to
2012
1.300

04.11.2015. on receipt of reply
of the taxpayer. Further report
will be submitted.
-do-

31.01.2014

31.01.2014
31.01.2014
31.01.2014
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

issued.
-do-
53
13959/07
Special
Zone
M/s. Rab Nawaz

Industries (Pvt)
Ltd
2012
1407200
0

issued.
-do-
54
13959/07
Special
Zone
M/s.AAA
Doublers (Pvt)
Ltd
2010
2011
740352

issued.
-do-
55
14492/27
Multan Rice
Mills
2011
0.818

issued.
-do-

31.01.2014
31.01.2014
31.01.2014
31.01.2014
31.01.2014
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
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
Under
process
2012
3.178
Under
process
61
13960/21
Special
Zone
M/s. Shujabad Oil

(Pvt) Ltd
1269760-0
2011
2012
35.000
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
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
been issued to the
taxpayer.
The
DAC
directed the RTO
to
complete
the
by 31.01.2014
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
Under
process

issued.
Under
process
been issued to the

taxpayer.
The
DAC
directed the RTO
to
complete
the
by 31.01.2014
been issued to the
taxpayer.
The
DAC
directed the RTO
to
complete
the
by 31.01.2014
been issued to the
taxpayer.
The
DAC
directed the RTO
to
complete
the
by 31.01.2014

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
audit and report
compliance
to
Audit/FBR
by
31.01.2014.
The DAC directed
the RTO to get its
audit by 31.01.2014.
Under
process
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
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
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

issued.
Under
process

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
audit and report
compliance
to
Audit/FBR
by
31.01.2014.

31.01.2014
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.
service benefits as
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.

compliance
to
Audit/FBR
by
31.01.2014.

CIR/SWL/816 dated:
2001.
75
14168
Sahiwal
Jaan Muhammad
2008 to
2012
0.115

service benefits as
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.

compliance
to
Audit/FBR
by
31.01.2014.

CIR/SWL/816 dated:
2001.
76
14090
Multan
0.604

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

issued.
Under
process
79
-do-
M/s. Crescent
Syndicate,
Sahiwal
2010
1.884

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

31.01.2014
compliance
to
Audit/FBR
by
31.01.2014.
31.01.2014
31.01.2014
81
14494/22
Muhammad Ali
Raza
NTN 3523521
13,450

issued.
Under
process
82
Muhammad Ali
Raza
NTN 3523521
51,565

issued.
Under
process
83
Muhammad Sharif
NTN 1552851
4,861,78
9

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
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.
28.01.2015
Pending till
the decision
of APEX
Court

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-

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
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
-do-

Ginners & Oil Mills
91
-do-
Lassani Cotton
Ginners
20112012
1.053
-do-
92
-do-
Balouch Cotton
Ginners
2009 to
2012
1.467
-do-
93
-do-
Farhan Irsalan
Karyana Merchant
2012
0.134
-do-
94
-do-
Karmanwalay
Model Industries
2010 to
2012
2.005
-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.

DAC directed the RTO to get the stance
verified
from
Audit
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.

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.

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
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.
PTD 2643= 104 TAX 241= 2011 TAX
No. 10617/2013 dated: 06.06.2013
settled.
PTD 2643= 104 TAX 241= 2011 TAX
No. 10617/2013 dated: 06.06.2013
settled.
28.01.2015
Pending till
the decision
of Apex
Court.

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.
PTD 2643= 104 TAX 241= 2011 TAX
No. 10617/2013 dated: 06.06.2013
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).
PTD 2643= 104 TAX 241= 2011 TAX
No. 10617/2013 dated: 06.06.2013
settled.
Total amount has been adjusted against
refund for the tax year 2013.
28.01.2015
Pending till
the decision
of Apex
Court.

28.01.2015
Pending till
the decision
of Apex
Court.

28.01.2015
Pending till
the decision
of Apex
Court.


Audit Report 2013-14 02.02.2016

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Audit Report 2013-14 02.02.2016

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Verification MEETING OF AUDIT REPORT 2013-14

IN RESPECT OF RTO MULTAN

M/s. Crystal Feed

Minimum tax u/s 113 charged

The RTO informed that show cause

Irregular reduction and short payment of Income Tax

While disposing of refund

The RTO informed that show cause

Show cause notice has been

Contested. Prior to Finance Act,

The RTO informed that show cause

The RTO informed that show cause

Case rectified and tax demand of

Minimum tax amounting to Rs.

The RTO informed that show cause

Minimum tax amounting to Rs.

Show cause notice has been

Show cause notice has been

The RTO informed that show cause

The RTO informed that show cause

Show cause notice has been

Proceedings are underway.

Abdul Sattar C/o

Show cause notice u/s 122(5A)

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

The RTO informed that show cause

The RTO informed that show cause

Show cause notice has been

The RTO informed that show cause

The taxpayer has been

The RTO informed that show cause

The RTO informed that show cause

-do-doM/s. Azam Raza

Charged Rs. 1219662/- on

-do-doThe RTO informed that show cause

Ch. Nazir Ahmad

The RTO informed that show cause

Charged Rs. 210021/- on

report compliance to Audit/FBR by

Non levy of tax on unexplained income u/s 111

As per return of the taxpayer the

The RTO informed that show cause

The RTO informed that show cause

Multan Rice Mills

Show cause notice has been

Show cause notice has been

Show cause notice has been

Show cause notice has been

The taxpayer declare foreign

M/s. Yousaf Oil

Case has been selected for Audit

notice has been issued to the

The RTO informed that show cause

The RTO informed that show cause

Show cause notice has been

Zafar and Co.

Show cause notice u/s 122(5A)

M/s. New Sitara

year 2012. Audit proceedings are

taxpayer. The DAC directed the RTO

The RTO informed

The taxpayer filed income tax manual

Show cause notice has been issued.