MINUTES OF DAC MEETING HELD ON 14.01.

2020
AUDIT REPORT 2011-12 IN RESPECT OF REGIONAL TAX OFFICE, MULTAN

S. DP NAME OF THE AMOUN TAX AUIDT REMARKS DAC DIRECTIVES

NO NO./PARA TAXPAYER TIBNVOLVED YEAR DEPARTMNET REPLY
NO./A.O
1 M/s. Al-Hilal 3,145,813 2010 Order u/s 221 of the Income Tax Ord. 29.12.2011 DAC Directive dated 08.03.2016:
5.3.2/ Industries (Pvt) 2001 was finalized vide DCRNo.4/31 Charged Rs.20,549,411/- RTO informed that through an order u/s
13091/03 Ltd 0800582-6 dated 21.10.11 resultantly demand of including demand pointed 122(5A), tax has been charged at
Rs.20549411/- is determined. out by audit. Recovery Rs.50150989/- as against amount
Corporate The taxpayer filed appeal before the awaited. pointed out by audit. DAC directed the
Zone CIR(A), Multan who vide his order dated 06.05.2013 RTO to recover the amount by
04.01.2012. “the order passed u/ 221 is Department to file 2nd 31.03.2016, get the same verified from
hereby cancelled” (copy of order is appeal if applicable
enclosed). Therefore it is requested that audit and report final compliance.
the para may be treated as settled.
otherwise fix 18.04.2018
10.11.2014 responsibility against
concerned officer. RTO has contested. DAC directed the
2nd appeal has not been filed. CIR
ordered to initiate proceedings u/s RTO to get its stance verified from
122(5A). 11.11.2014 audit and report final compliance by
Outcome of order 15.05.2018
Latest Compliance passed u/s 122 (5A) to
Order u/s 122(5A) passed and demand be provided. DAC Directive dated 28.10.2019
of Rs. 50,150,989 has been created. RTO informed that the case is
(Copy enclosed) 23.02.2016 subjudice before ATIR since
22.09.2015. DAC directed the RTO to

1
16.04.2018 To recover theRs.
In the light of CIR(A) order, income of the

Page
50,150,989 and report request for out of turn hearing and
taxpayer is recomputed as under:
compliance. pursue the case for early disposal.
Assessed Income 02.12.2019
369,074,165 subjudice before ATIR since
Less: Addition deleted 22.09.2015
223,962,903
Balance Income
145,111,262
WWF@2%
2,902,225
Balance Taxable Income
142,209,037
Tax@35%
49,773,163

1
 Add WWF
2,902,225
Total Tax
52,675,388
Less: tax paid 83,822,933
Refundable 31,147,545
25.09.2019
Department has filed 2nd appeal before
ATIR vide No.990 dated 22.09.2015/. The
case is subjudice before ATIR * copy
enclosed)
02.12.2019
Case is subjudcie before ATIR since
22.09.2015.Request for early hearing has
been made

Incorrect adjustment/dreduction of profit earned from Ijara Financing under rule 8-A of seventh schedule to the income tax ordinance 2001.
2 M/s. 36,236,137 2010 Contested: 29.12.2011 DAC Directive dated 08.03.2016:
5.3.3/ Bank Al The audit observation was confronted to the Department to revisit the DAC discussed in detail the contention taken by
12977/06 Habib taxpayer who vide A.R.’s letter dated case as the said RTO, however, the same was not accepted on
709857 19.10.2011 submitted its reply contending that amendment is applicable the ground that general provision of the Finance
Corporate Rule 8A(3) has retrospective effect and from tax year 2011. Further, Act, 2010 are to be implemented w.e.f July,
Zone adjustments were to be made in T.Y 2010 said schedule is not 2010 onwards. DAC therefore, directed the RTO
when it was inserted by the Finance Act 2010. applicable upto tax year to immediately invoke statutory proceedings,
There is no loss of revenue; firstly because 2008. Contention not charged the tax, recover the same, get it verified
ijara income for earlier year, though against the acceptable. from audit and furnish final compliance by
law, has already been added vide order under 06.05.2013 15.04.2016.
section 122(1)/177 dated 21.05.2011 and Refer to DAC as 18.04.2018
secondly the treatment suggested by audit adjustment of ijara
authority, though against the provisions of rule financing is applicable RTO has contested. DAC directed the RTO
to get its stance verified from audit and

2
8A of Seventh Schedule read with sections from T.Y 2011 instead of

Page
18(3) and 22(12) of the Ordinance, instead of T.Y 2010. report final compliance by 15.05.2018
increasing will further reduce the income. It is DAC Directive dated 28.10.2019
therefore requested that audit objection based 02.12.2019
on misreading of law may kindly be dropped. The complete assessment RTO has contested. DAC directed the RTO to get it
The contention of the taxpayer company is record for the relevant tax stance verified from audit and report final
supported with the relevant provisions of law. years be provided and compliance by 06.11.2019
Therefore, the para may please be treated as probes the matter DAC Directive dated 28.10.2019
settled. (Copy of reply is enclosed). accordingly. RTO has contested that the Rule referred
10.11.2014 by Audit in the audit observation i.e. Rule
The matter has already been referred to DAC 8A of 7th Schedule to the Income Tax
25.09.2019 Ordinance, 2001 is applicable w.e.f Tax
AS NARRATED ABOVE

2
 24.10.2019 Year 2011. Moreover, the same pertains to
Contested on the basis of Rule-8A of the 7th
allowance of provision for bad debts. DAC
schedule. Audit observation and application
from tax year 2011. directed the RTO to get stance verified
02.12.2019 from audit and report final compliance by
Contested as per stated above,. Furthermore, 06.11.2019.
Rule-8A of the 7th schedule Income tax
Rules,2002 deals with provision for bad debt
whereas audit charged tax on the “Ijra” profit
which is incorrect application of referred rule.
Therefore, it is requested that para may kindly
be treated as settled.

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

3 5.3.4/12978/01 M/s. 20,222,891 201 Compliance 09-09.2013 Department to file 2nd DAC Directive dated 08.03.2016:
Shujabad 0 The matter has been taken up by the appeal if not filed, and DAC observed that after CIR(A) vacated order
Corporate Weaving Commissioner Inland Revenue Zone-II, RTO status of appeal to be u/s 122(5A), no 2nd appeal was filed. DAC
Zone Mills Ltd Multan has passed order u/s 122(5A) vide DCR intimated to audit directed the RTO to provide written
2700524-7 # 1/1 dated 01-03-2012 creating additional comments of the Commissioner who did not
demand of Rs. 18,886,692/-. Later on the 11.11.2014 opt to file 2nd appeal, to audit for verification.
CIR(A) who vide his A.O No. 344, dated 27-04- Department to revisit the Final compliance report in the matter should
2012 has vacated the order u/s 122(5A) being Para on the ground of be submitted by 21.03.2016.
illegal (Copies of orders are enclosed). Second observation as issue 18.04.2018
appeal has not filed with the remarks of the CIR relates to proportionate of
Corporate Zone that the order u/s 122(5A) on expenses & levy of WWF RTO has contested. DAC directed the RTO to
the ground that Rule 231 of I.Tax Rule 2002, get its stance verified from audit and report

3
provides that while preparing expenditure “FOB” 04.04.2018 final compliance by 15.05.2018

Page
value of export sale be adopted of CIF value DAC Directive dated 28.10.2019
Supporting documents
has been adopted in order u/s 122(5A). He may
make the fresh order in the light of CIR Appeals may be provided in RTO has contested. DAC directed the RTO to get it
order, approved as proposed on 14-06-2012. A support of departmental stance verified from audit and report final
letter issued by the IRAO Legal-02, Corporate compliance by 06.11.2019
contention.
Zone, RTO, Multan to DCIR Audit Unit-02,
Corporate Zone, Multan vide No.384 dated 19-
06-2013 for making a fresh order in the light of 30.09.2019
CIR Appeals order which is not made by the Compliance of DAC
Audit. Whereas, WWF Rs.2,126,008/- charged directives dated 08.03.2016
vide DCR # 26/134 dated 06-09-2013 on to provide ground/reason
declared net profit of Rs.106,300,435/- in the for not filing of appeal may
light of judgment of H”ble Sind High court . please be provided.

3
 Copy of order is enclosed.
21-04-2014 : The amount of WWF was stayed
02.12.2019
by the H’ble High Court on 27-11-2013 with the
direction that “Notice for the above date. Till the Grounds of for not filing
next date of hearing impugned recovery notice second appeal has not
shall remained suspended. “ so far been provided to
25.09.2019
audit for verification
Contested.
As per judgment of Honourable through concerned
Supreme Court of Pakistan dated commissioner.
10.11.2016 in Civil Appeal No.1049 to
1055/2011 has dismissed the decision of
Honourable Sindh High Court regarding
charging of WWF.
02.12.2019
Appeal not filed on the ground that
prorate of expenditure was made by
adopting sales CIF Vlaues whereas as
per rules 321 of the Income Tax
rules,2002 prorata of expenditure shall
be made by adopting FOB value of
sales.

4 5.3.4/12978/01 M/s. Pak 337,383,000 2010 Case has been referred to Audit for remedial Department to re-visit the DAC directed the RTO revisit the case and

4
Arab action. issue regarding report compliance to audit/FBR by

Page
Corporate Zone Fertilizer 06-05-2013 proportion of expenses as 15.09.2013.
(Pvt) Ltd Asstt; for tax year 2010 has been amended u/s pointed out by audit & 26.11.2014
0786750 122(5A) by the CIR Zone-II, RTO, Multan vide submit reply accordingly. The DAC directed the RTO to get the stance
order dated 15-03-2012. The issue regarding 11.11.2014 verified from Audit by 26.12.2014.
Apportionment of expenses between normal Copy of supporting DAC Directive dated 08.03.2016:
sales and export sales /exempt sales was documents to be provided Case discussed in detail. DAC directed the
confronted to the taxpayer. However after 02.12.2019 Chief Commissioner to furnish a report to
considering the reply of the taxpayer the DAC about cogent reasons on the basis of
Cogent reasons on the
contention of the taxpayer was accepted vide which action u/s 122(5A) was dropped. Final
order dated 15-03-2012. Copy of order is basis of which action compliance report in the matter should be
enclosed. Para may be treated as settled. u/s 122(5A) was submitted by 21.03.2016.
dropped, be provided 18.04.2018
10.11.2014

4
 Same as above to audit for verification RTO has contested. DAC directed the RTO
25.09.2019
through concerned to get its stance verified from audit and
Asstt; for tax year 2010 has been amended u/s
122(5A) by the CIR Zone-II, RTO, Multan vide Zonal Commissioner. report final compliance by 15.05.2018
order dated 15-03-2012. The issue regarding DAC Directive dated 28.10.2019
Apportionment of expenses as per provision of RTO has contested. DAC directed the RTO to get it
section 67of the Income TAX Ordinance,2001 stance verified from audit and report final
between normal sales and export sales /exempt
compliance by 06.11.2019
sales was confronted to the taxpayer. However
after considering the reply of the taxpayer the
contention of the taxpayer was accepted by the
Commissioner and copy of the reply furnished by
the taxpayer as well as order passed by the CIR
U/S 122(5A) vide order dated 15-03-2012. are
enclosed. Para may kindly be treated as settled.

24.10.2019
CIR Corporate zone after confronting the audit
observation and reply furnished by the taxpayer
found satisfactory therefore the audit observation
of the audit authority was wrongly framed.
02.12.2019
AS above

excessive determination of loss due to incorrect apportionment of expenses

5
5 5.3.4/13085/05 M/s. Ahmad 10,480,761 201 Latest compliance 06.05.2013 11.11.2014 04.01.2012

Page
Hassan 0 The RTO seeks time to submit reply,
Corporate Textile Mills The matter has been taken up by the Commissioner Updated status of the DAC directed the RTO to submit
Zone 1000978-8 Inland Revenue Zone-II, RTO Multan has passed reference to High definite progress in the matter by
order u/s 122(5A) vide DCR # 12/02 dated 23-04-202 Court to be intimated 15.03.2012 to Audit / FBR.
creating tax demand of excessive determination of 21.08.2013
refund amounting to Rs.8,289,367/- Copy of order is 30.09.2019 DAC took serious concern for not
enclosed. Department to please comply its previous DAC directives.
12.11.2014 provide the supporting DAC directed RTO to furnish
The above order has been vacated by the ITAT, document as reply/progress to audit/FBR by
Lahore vide Order No. ITA No. 601/LB/2014 dated manufacturing concern. 15,09.2013.
13.10.2014 received to RTO on 25.10.2014. 03.12.2019 26.11.2014
25.09.2019 Subjudice before Get the stance verified from audit.
Since no point of law involved.therefore, reference to

5
 high court was not filed.Para may kindly be treated as Honorable High Court DAC Directive dated 08.03.2016:
settled. RTO informed that case is
24.10.2019 subjudice before the Lahore High
Reference filed to High Court. Copy of the same Court, Lahore. The DAC directed
is provided. the RTO to pursue the case for
02.12.2019
early hearing.
As narrated above
18.04.2018
RTO has contested. DAC directed
the RTO to get its stance verified
from audit and report final
compliance by 15.05.2018
DAC Directive dated 28.10.2019
RTO informed that the case is
subjudice before LHC since 2016.
DAC directed the RTO to pursue
the case for early disposal.

Loss of revenue for non treating the tax collected or deducted as final tax.
6 5.3.17/ M/s. Ahmad 2,161,47 2010 Department to revisit the issue of 04.01.2012
13084/12 Hassan Textile 5 loss carried forward discussed in The RTO seeks time to submit reply,
Mills Ltd Latest Compliance 10-11-2014 : order u/s 122(5A) dated 23.04.12. the DAC directed the RTO to submit
Corporate 0100978-8 Contested Further status of recovery in respect definite progress in the matter by
Zone The taxpayer co. is engage in the of excess refund issued to be 15.03.2012 to Audit / FBR.
manufacturing of gray fabrics and yarn. intimated to audit. 21.08.2013

6
Therefore, the tax deducted u/s 153 is 11.11.2014 DAC directed the RTO revisit the

Page
adjustable tax instead of final tax as Same remarks as above case and report compliance to
pointed out by the audit authority. 30.09.2019 audit/FBR by 15.09.2013.
The Para may kindly be treated settled. 26.11.2014
As per provision of section 153(1)
25.09.2019 The DAC directed the RTO to finalize
CONTESTED (a)/169 the tax deducted or the legal proceedings in the light of
The taxpayer co. is engage in the collected was a final tax. discussion in DAC by 26.12.2014.
manufacturing of gray fabrics and yarn. 02.12.2019 DAC Directive dated 08.03.2016:
Therefore, the tax deducted u/s 153 is The department has contested the The comments offered by RTO are
adjustable tax instead of final tax as observation on the plea that the not clear, hence DAC directed the
pointed out by the audit authority. taxpayer is manufacturing concern and RTO to revisit the case and furnish
The Para may kindly be treated settled. can adjust tax deducted u/s 153. final compliance by 21.03.2016.
02.12.2019 Contention of department may be 18.04.2018

6
 As per profile and return for income tax accepted. RTO has contested. DAC directed
the taxpayer is manufacturing concerned
the RTO to get its stance verified
i.e textile mills .therefore, tax deducted
u/s 153 is adjustable tax instead of final from audit and report final
tax. compliance by 15.05.2018
DAC Directive dated 28.10.2019
RTO has contested. DAC directed the
RTO to get it stance verified from audit
and report final compliance by
06.11.2019

Non levy of penalty for non/late filing of returns u/s 182

7 5.3.20/ Adnan 40,81 201 CONTESTED. Verification pending.
12955/11 Zafar 4 0 The Audit Observations to charge penalty u/s 182 in PTR DAC directed the RTO revisit the
0102747-6 cases are not applicable for tax year 2010, as the explanation Refer to DAC as penalty case and report compliance to
Corporate to section 182(1) at Sr. No.1 is inserted by Finance Act, 2011 is chargeable on tax audit/FBR by 15.09.2013.
Zone applicable to tax year 2012. As per return of total income for payable even return filed 26.11.2014
tax year 2010, tax payable is tax chargeable less tax u/s 115(4) and tax The DAC directed the RTO to get the
paid/deducted. Tax payable in all PTR cases as per return is deducted as PTR. stance verified from Audit by
Nil. Hence minimum penalty of Rs. 5000/- chargeable. 26.12.2014
02.12.2019 DAC Directive dated 08.03.2016:
22.10.2019. Charged and recovered Case discussed in detail. DAC
Charged Rs. 5000/- & recovered vide CPR# IT-20190927- Rs. 5000/- balance not directed the RTO to charge penalty at
1603-1470013.Para may kindly be treated as settled. leviable as the taxpayer maximum as prescribed in the law,
02.12.2019. has paid admitted tax recover the same and report final
Contested as per stated above. liability with return. compliance by 31.03.2016 after
Furthermore, the taxpayer file return u/s 115(4) .As per return verification from Audit.
for the tax year 2010 tax payable is calculated after deducting

7
18.04.2018
tax already paid/deducted. In the instant case tax payable is

Page
nil. Hence there is no question of penalty payable @ one RTO informed that tax demand is
tenth of one % of tax payable for each day of default. It is under recovery. DAC directed the
therefore, requested that para may kindly be treated as RTO to enforce recovery and
settled.
report final compliance by
15.05.2018.
DAC Directive dated 28.10.2019
RTO has contested. DAC directed the
RTO to get it stance verified from audit
and report final compliance by
06.11.2019

7
8 5.3.20/ Darishak 192,97 201 CONTESTED. Verification pending. DAC directed the RTO revisit the
12955/11 cotton 8 0 The Audit Observations to charge penalty u/s 182 in PTR case and report compliance to
Industries cases are not applicable for tax year 2010, as the explanation Refer to DAC as penalty audit/FBR by 15.09.2013.
Multan AOP to section 182(1) at Sr. No.1 is inserted by Finance Act, 2011 is chargeable on tax
Zone 0999668-8 applicable to tax year 2012. As per return of total income for payable even return filed DAC directives 26.11.2014
tax year 2010, tax payable is tax chargeable less tax u/s 115(4) and tax The DAC directed the RTO to get
paid/deducted. Tax payable in all PTR cases as per return is deducted asPTR. the stance verified from Audit by
Nil. Hence minimum penalty of Rs. 5000/- chargeable. 26.12.2014.
25.09.2019 30.09.2019 .
PENALITYRS.5000/- CHARGED AND RCOVERED VIDE Penalty levied Rs. 5000 DAC Directive dated 08.03.2016:
CPR No.IT-2018-0829-0392-1213040 ( COPY ENCLOSED) only DAC compliance Case discussed in detail. DAC
02.12.2019. was not provided as directed the RTO to charge penalty
Contested as per stated above. maximum penalty was at maximum as prescribed in the
Furthermore, the taxpayer file return u/s 115(4) .As per return not charged. law, recover the same and report
for the tax year 2010 tax payable is calculated after deducting final compliance by 31.03.2016
tax already paid/deducted. In the instant case tax payable is after verification from Audit.
02.12.2019
nil. Hence there is no question of penalty payable @ one tenth 18.04.2018
Charged and recovered
of one % of tax payable for each day of default. It is therefore,
Rs. 5000/- balance not RTO informed that tax demand
requested that para may kindly be treated as settled.
leviable as the taxpayer is under recovery. DAC directed
has paid admitted tax
liability with return. the RTO to enforce recovery
and report final compliance by
15.05.2018.
DAC Directive dated
28.10.2019

8
DAC directed the RTO to get it stance

Page
verified from audit and report final
compliance by 06.11.2019

9 5.3.20/ Mushtaq Brothers 212,320 201 CONTESTED. Verification pending. DAC directed the RTO revisit
12955/11 Cotton Industries 0 The Audit Observations to charge penalty u/s 182 in the case and report
TaunsSahrifAOP PTR cases are not applicable for tax year 2010, as the Refer to DAC as compliance to audit/FBR by
Multan 1542916-4 explanation to section 182(1) at Sr. No.1 is inserted by penalty is chargeable 15.09.2013.
Zone Finance Act, 2011 applicable to tax year 2012. As per on tax payable even
return of total income for tax year 2010, tax payable is return filed u/s 115(4) DAC directives 26.11.2014
tax chargeable less tax paid/deducted. Tax payable in and tax deducted The DAC directed the RTO to
all PTR cases as per return is Nil. Hence minimum asPTR. get the stance verified from Audit

8
 penalty of Rs. 5000/- chargeable. by 26.12.2014.
25.09.2019 30.09.2019 DAC Directive dated
PENALITYRS.5000/- CHARGED AND RCOVERED VIDE Penalty levied Rs. 08.03.2016:
CPR No.IT-2018-0816=0326-1139122 ( COPY 5000 only DAC Case discussed in detail. DAC
ENCLOSED). compliance was not directed the RTO to charge
02.12.2019. provided as maximum penalty at maximum as
Contested as per stated above. penalty was not prescribed in the law, recover the
Furthermore, the taxpayer file return u/s 115(4) .As per charged. same and report final compliance
return for the tax year 2010 tax payable is calculated after by 31.03.2016 after verification
02.12.2019
deducting tax already paid/deducted. In the instant case from Audit.
Charged and
tax payable is nil. Hence there is no question of penalty
payable @ one tenth of one % of tax payable for each day
recovered Rs. 5000/- 18.04.2018
balance not leviable. RTO informed that tax
of default. It is therefore, requested that para may kindly
be treated as settled. demand is under recovery.
DAC directed the RTO to
enforce recovery and report
final compliance by
15.05.2018.
DAC Directive dated
28.10.2019
DAC directed the RTO to get it
stance verified from audit and
report final compliance by
06.11.2019

9
10 5.3.20/ Sheikh Industries 502,458 2010 CONTESTED. Verification pending. DAC directed the RTO revisit

Page
12955/11 Cotton Ginning and The Audit Observations to charge penalty u/s 182 in the case and report compliance
pressing Factory & Oil PTR cases are not applicable for tax year 2010, as Refer to DAC as to audit/FBR by 15.09.2013.
Multan Mills AOP3069218-7 the explanation to section 182(1) at Sr. No.1 is penalty is chargeable DAC directives 26.11.2014
Zone inserted by Finance Act, 2011 applicable to tax year on tax payable even The DAC directed the RTO to get
2012. As per return of total income for tax year 2010, return filed u/s 115(4) the stance verified from Audit by
tax payable is tax chargeable less tax and tax deducted 26.12.2014.
paid/deducted. Tax payable in all PTR cases as per asPTR. DAC Directive dated 08.03.2016:
return is Nil. Hence minimum penalty of Rs. 5000/- Case discussed in detail. DAC
chargeable. . 30.09.2019 directed the RTO to charge
25.09.2019 Penalty levied Rs. 5000 penalty at maximum as
Penalty u/s 182 at Rs.5000/- charged and recovered only DAC compliance prescribed in the law, recover the
vide CPR NO.IT-20160421-1839-1171439 ( CPY was not provided as same and report final compliance
ENCLOSED) maximum penalty was by 31.03.2016 after verification

9
 02.12.2019. not charged. from Audit.
Contested as per stated above. 18.04.2018
Furthermore, the taxpayer file return u/s 115(4) .As per 02.12.2019 RTO informed that tax demand
return for the tax year 2010 tax payable is calculated Charged and recovered
after deducting tax already paid/deducted. In the instant is under recovery. DAC
Rs. 5000/- balance not
case tax payable is nil. Hence there is no question of leviable.. directed the RTO to enforce
penalty payable @ one tenth of one % of tax payable for recovery and report final
each day of default. It is therefore, requested that para
may kindly be treated as settled. compliance by 15.05.2018.
DAC Directive dated
28.10.2019
DAC directed the RTO to get it
stance verified from audit and report
final compliance by 06.11.2019

11 5.3.20/ Pakistan 422,62 2010 CONTESTED. Verification pending. DAC directed the RTO revisit the
12955/11 Cotton and 5 The Audit Observations to charge penalty u/s 182 in PTR case and report compliance to
Oil Mills DGK cases are not applicable for tax year 2010, as the Refer to DAC as penalty audit/FBR by 15.09.2013.
Multan 1149058-6 explanation to section 182(1) at Sr. No.1 is inserted by is chargeable on tax DAC directives 26.11.2014
Zone Finance Act, 2011 applicable to tax year 2012. As per payable even return filed The DAC directed the RTO to get the
return of total income for tax year 2010, tax payable is tax u/s 115(4) and tax stance verified from Audit by
chargeable less tax paid/deducted. Tax payable in all PTR deducted as PTR 26.12.2014.
cases as per return is Nil. Hence minimum penalty of Rs. DAC Directive dated 08.03.2016:
5000/- chargeable. 30.09.2019 Case discussed in detail. DAC
25.09.2019 Penalty levied Rs. 5000 directed the RTO to charge penalty at
Penalty u/s 182 at Rs.5000/- charged and recovered only DAC compliance maximum as prescribed in the law,
videCPR NO.IT-2018-0816-0326-1139243 was not provided as recover the same and report final
02.12.2019. maximum penalty was compliance by 31.03.2016 after

10
Contested as per stated above. not charged. verification from Audit.
Furthermore, the taxpayer file return u/s 115(4) .As per 18.04.2018

Page
return for the tax year 2010 tax payable is calculated after
02.12.2019 RTO informed that tax demand is
deducting tax already paid/deducted. In the instant case
Charged and recovered under recovery. DAC directed the
tax payable is nil. Hence there is no question of penalty
Rs. 5000/- balance not
payable @ one tenth of one % of tax payable for each day RTO to enforce recovery and
leviable..
of default. It is therefore, requested that para may kindly be
report final compliance by
treated as settled.
15.05.2018.
DAC Directive dated 28.10.2019
DAC directed the RTO to get it stance
verified from audit and report final
compliance by 06.11.2019

10
12 5.3.20/ Hamza Javed 512,62 201 Verification pending. DAC directed the RTO revisit the
12955/11 Cotton 4 0 CONTESTED. case and report compliance to
Industries The Audit Observations to charge penalty u/s 182 in Refer to DAC as penalty audit/FBR by 15.09.2013.
Multan KotAddu PTR cases are not applicable for tax year 2010, as the is chargeable on tax
Zone 1416041-2 explanation to section 182(1) at Sr. No.1 is inserted by payable even return filed DAC directives 26.11.2014
Finance Act, 2011 applicable to tax year 2012. As per u/s 115(4) and tax The DAC directed the RTO to get
return of total income for tax year 2010, tax payable is deducted as PTR the stance verified from Audit by
tax chargeable less tax paid/deducted. Tax payable in 26.12.2014.
all PTR cases as per return is Nil. Hence minimum 30.09.2019 DAC Directive dated 08.03.2016:
penalty of Rs. 5000/- chargeable. Penalty levied Rs. 5000 Case discussed in detail. DAC
25.09.2019 only DAC compliance directed the RTO to charge penalty
Penalty u/s 182 at Rs.5000/- charged and recovered vide was not provided as at maximum as prescribed in the
CPR NO.IT-2018-0816-0326-1139098 maximum penalty was law, recover the same and report
02.12.2019. not charged. final compliance by 31.03.2016 after
Contested as per stated above. verification from Audit.
Furthermore, the taxpayer file return u/s 115(4) .As per 18.04.2018
02.12.2019
return for the tax year 2010 tax payable is calculated after
Charged and recovered RTO informed that tax demand is
deducting tax already paid/deducted. In the instant case tax
Rs. 5000/- balance not under recovery. DAC directed
payable is nil. Hence there is no question of penalty payable
leviable..
@ one tenth of one % of tax payable for each day of default. the RTO to enforce recovery and
It is therefore, requested that para may kindly be treated as
report final compliance by
settled.
15.05.2018.
DAC Directive dated 28.10.2019
DAC directed the RTO to get it stance
verified from audit and report final
compliance by 06.11.2019

11Page
13 5.3.20/ Mohib Cotton 1,605,513 201 05.06.2018 Verification pending. DAC directed the RTO revisit the
12955/11 Ginning 0 The Audit Observations to charge penalty u/s 182 in case and report compliance to
Industries, PTR cases are not applicable for tax year 2010, as the Refer to DAC as penalty audit/FBR by 15.09.2013.
Multan 1522691-3 explanation to section 182(1) at Sr. No.1 is inserted by is chargeable on tax
Zone Finance Act, 2011 applicable to tax year 2012. As per payable even return DAC directives 26.11.2014
return of total income for tax year 2010, tax payable is filed u/s 115(4) and tax The DAC directed the RTO to get
tax chargeable less tax paid/deducted. Tax payable in deducted asPTR. the stance verified from Audit by
all PTR cases as per return is Nil. Hence minimum 26.12.2014.
penalty of Rs. 5000/- chargeable. 30.09.2019 DAC Directive dated 08.03.2016:
Penalty levied Rs. 5000 Case discussed in detail. DAC
Amount of penalty Rs. 5000/- recovered vide CPR IT- only DAC compliance directed the RTO to charge penalty
20180425-0326-1230846 dated 25.04.2018. at maximum as prescribed in the

11
 Copy enclosed. was not provided as law, recover the same and report
25.09.2019 maximum penalty was final compliance by 31.03.2016 after
Penalty u/s 182 at Rs.5000/- charged and recovered not charged. verification from Audit.
vide CPR NO.IT-2018-0816-0326-1139098. 18.04.2018
02.12.2019. 02.12.2019 RTO informed that tax demand
Contested as per stated above. Charged and recovered
Furthermore, the taxpayer file return u/s 115(4) .As per is under recovery. DAC directed
Rs. 5000/- balance not
return for the tax year 2010 tax payable is calculated after leviable. the RTO to enforce recovery and
deducting tax already paid/deducted. In the instant case report final compliance by
tax payable is nil. Hence there is no question of penalty
payable @ one tenth of one % of tax payable for each day 15.05.2018.
of default. It is therefore, requested that para may kindly be DAC Directive dated 28.10.2019
treated as settled. DAC directed the RTO to get it stance
verified from audit and report final
compliance by 06.11.2019

14 5.3.20/ Al-Noor Cotton 169,97 2010 CONTESTED. Verification pending. DAC directives 26.11.2014
12955/11 Ginning 0 The Audit Observations to charge penalty u/s 182 in PTR The DAC directed the RTO to get the
Pressing & Oil cases are not applicable for tax year 2010, as the Refer to DAC as penalty stance verified from Audit by
Multan Mills 3126488- explanation to section 182(1) at Sr. No.1 is inserted by is chargeable on tax 26.12.2014.
Zone 3 Finance Act, 2011 applicable to tax year 2012. As per payable even return filed DAC Directive dated 08.03.2016:
return of total income for tax year 2010, tax payable is tax u/s 115(4) and tax Case discussed in detail. DAC
chargeable less tax paid/deducted. Tax payable in all PTR deducted asPTR. directed the RTO to charge penalty at
cases as per return is Nil. Hence minimum penalty of Rs. maximum as prescribed in the law,
5000/- chargeable. 30.09.2019 recover the same and report final
23.09.2019 Penalty levied Rs. 5000 compliance by 31.03.2016 after
Amount of penalty Rs. 5000/- recovered vide CPR IT- only DAC compliance verification from Audit.
20180829-0358-1217519 (Copy enclosed. was not provided as 18.04.2018

12
02.12.2019. maximum penalty was
Contested as per stated above. RTO informed that tax demand is
not charged.
under recovery. DAC directed the

Page
Furthermore, the taxpayer file return u/s 115(4) .As per
return for the tax year 2010 tax payable is calculated after RTO to enforce recovery and
02.12.2019
deducting tax already paid/deducted. In the instant case
Charged and recovered report final compliance by
tax payable is nil. Hence there is no question of penalty
Rs. 5000/- balance not 15.05.2018.
payable @ one tenth of one % of tax payable for each day
leviable..
of default. It is therefore, requested that para may kindly DAC Directive dated 28.10.2019
be treated as settled. DAC directed the RTO to get it stance
verified from audit and report final
compliance by 06.11.2019

12
Irregular issuance of refund without verification of status of the taxpayer.

15 M/s. 4,240,07 201 27.04.2018 02.12.2019

5.4.1/ Kanza 2 0 The taxpayer import pesticides in bulk and after delusion and The reply is not DAC took serious concerned for non
13086/06 AG an processing fill different size of packing and sale in the market. convincing and as per finalization the case. DAC directed the
AOP The business activity of the taxpayer falls within the ambit of contents of the audit RTO to finalize the proceeding and
Multan manufacturer. Therefore, refund has rightly been processed observation. Re-visit the report compliance to audit/FBR by
Zone and issued after proper verification. case 15.09.2013. directives 26.11.2014
30.09.2019 The DAC directed the RTO to finalize
The taxpayer import pesticides in bulk and after delusion and the proceeding and report compliance
processing fill different size of packing and sale in the market. to audit/FBR by 26.12.2014.
The business activity of the taxpayer falls within the ambit of DAC Directive dated 08.03.2016:
manufacturer. Therefore, refund has rightly been processed Case discussed. DAC directed the
and issued after proper verification. RTO to establish their contention in
02.12.2019 view of facts and law, that the taxpayer
As narrated above. has the status of manufacturer. If
required RTO may also seek
clarification from FBR in this respect.
DAC directed the RTO to come up with
final report by 31.03.2016.
18.04.2018
DAC directed the RTO to
reexamine their contention in view
of Audit comments, and re-submit
the case for verification to audit and

13
report final compliance by
15.05.2018.

Page
DAC Directive dated 28.10.2019
RTO has contested. DAC directed the
RTO to get it stance verified from audit
and report final compliance by 06.11.2019

13
Irregular issuance of refund on commercial imports.
16 Corporate M/s. 22,490,7 201 Latest compliance 06.05.2013 Department to revisit DAC directed the RTO revisit the
Zone Roomi 43 0 Contested: the case as taxpayer case and report compliance to
5.4.1/ Industrie Show cause notice was issued vide this office letter No.372 itself has declared audit/FBR by 15.09.2013.
13082/04 s (Pvt) dated 17.10.2011. In response thereto the A.R filed reply on commercial imports in
Ltd 21.10.2011 and stated the company never imported of sales tax returns for DAC directives 26.11.2014
edible oil and packing material and never made any the period July 09 to The DAC directed the RTO to finalize
commercial import . The taxpayer company only imported June.10. the proceeding and report compliance to
canola seed for its own industrial undertaking/manufacturing. audit/FBR by 26.12.2014.
The A.R has provided copies of goods declaration for the
entire imports which clearly indicate that the taxpayer only DAC Directive dated 08.03.2016:
imported canola seed. The order u/s 170(4) of the Income 11.11.2014 Case discussed in detail. DAC directed
Tax Ordinance, 2001 was finalized and tax was charged as the RTO to provide complete set of
under:- Same audit remarks import documents including GDs and bill
Total income as per Income Tax as above of entry and final accounts, for
Return Column No.78 Rs.14,121,108/- establishing their contention. The
Less Worker Welfare Fund 02.12.2019 exercise should be completed by
charged as above. Rs. 303,028/- Complete documentary 31.03.2016.
Balance taxable income evidences in support of 18.04.2018
for the year Rs.13,818,080/- contention be provided
Income Tax @ 35% Rs. 4,836,328/- RTO has contested. DAC directed
to audit for verification.
Minimum tax u/s 113 of the Income Tax Ord.2001 is payable the RTO to get its stance verified
as under:- from audit and report final
Total turnover declared Rs.1,138,026,103/- compliance by 15.05.2018
Tax payable @ .5% Rs.5,690,131/-
Minimum tax u/s 113 is higher than the tax payable as per DAC Directive dated 28.10.2019
first Schedule as above Rs.5,690,131/- RTO has contested. DAC directed the RTO
Add final tax @ 1% on supply of cotton lint Rs. 773,867/- to get it stance verified from audit and
Add Worker Welfare Fund charged as above Rs. 303,028/-

14
report final compliance by 06.11.2019
Total tax payable for the year Rs.6,767,026/-
Less deductions / payments

Page
Tax deducted on imports u/s 148 was claimed
Rs.28,032,570/-
and verified by the DPU, Multan vide No.220/191 dated
27.01.2011 Rs.25,425,231/-
Tax deducted on supply of cotton lint was claimed
Rs.760,522/-
and verified by the DPU, Multan vide No.208/180 Rs.
531,229/-
Tax deducted on cash withdrawal u/s 231A verified
by Banks Rs. 578,968/-
Tax deducted on electricity bills u/s 235

14
 (original bills seen) Rs. 1,400,193/-
Tax deducted on telephone bills u/s 236
(original bills seen) Rs. 2,599/-
Total verified tax deductions/payments Rs.27,938,220/-
Balance refundable amount for the year
Rs.21,171,194/-)
Total tax charged for the year is Rs.6,767,026/- included tax
on PTR and WWF and minimum tax charged @ 0.5%. The
tax charged u/s 113 is higher than the tax payable under
NTR. The tax payable under PTR was allowed u/s 153 for
supply of cotton lint amounting to Rs.760,522/- out of which
was verified by the DPU, RTO, Multan amounting to
Rs.595,651/-, therefore no PTR tax is allowed for issuance of
refund.
In the light of submission the Para may be treated as settled
25.09.2019
The audit observation was confronted to taxpayer vide ACIR,
E&C Unit-01 vide letter No. 372 dated 17.10.2014. The
Taxpayer furnished reply through his AR on 21.10.2011,
wherein he has denied the observation and denied for import
of edible oil and packing material as well as commercial
imports by the Taxpayer. (Copies enclosed). .
02.12.2019
Contested as stated above.
Furthermore, as taxpayer is manufacturer and rightly claimed
the adjustment of tax u/s 148.as directed DAC income tax
return ,copy of audited accounts/ITMS profie and Income tax
return is provided. Para may kindly be treated as settled.

15
Loss due to non levy of penalty u/s 182( LATE FILING OF RETURNS ) and issued Excessive refund amounting to Rs.0.525

Page
17 5.4.1/ M/s. Wali 22,920 2010 30.09.2019 02.12.2019 DAC directed the RTO revisit the
13054/ Cotton Penalty has been charged. Recovery is awaited. Amount charged case and report compliance to
08 Industries expedite recovery. audit/FBR by 15.09.2013.
Penalty u/s 182 DAC directives 26.11.2014
Multan was not levied The DAC directed the RTO to finalize
Zone as taxpayer fail the proceeding and report compliance
to furnish return to audit/FBR by 26.12.2014
within time and DAC Directive dated 08.03.2016:
department RTO informed that penalty amounting to
also issued Rs.22920/- has been charged. DAC
refund without directed the RTO to recover the

15
 imposition of amount, get the same verified from
late filing of audit and final compliance report in the
penalty u/s 182 matter should be submitted by
which result 21.03.2016.
loss of revenue 18.04.2018
RTO informed that tax demand is
under recovery. DAC directed the
RTO to enforce recovery and report
final compliance by 15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that
despite lapse of considerable
time, recovery could not be
affected. DAC therefore, directed
the CCIR to personally intervene,
enforce recovery and report final
compliance by 06.11.2019.
18 5.4.1/ M/s. Rehmania 59,076 2010 Penalty has been charged.Rs.59,076 Recovery is awaited. 02.12.2019 DAC directed the RTO revisit the
13054/ Cotton ginning 23.09.2019 Amount charged case and report compliance to
08 Pressing & Oil Recovery under process recovery notice u/s 138 has been expedite recovery. audit/FBR by 15.09.2013.
Mills 1557499- issued on 15.08.2018) copy enclosed) DAC directives 26.11.2014
Multan 7 02.12.2019 The DAC directed the RTO to finalize
Zone Penalty u/s 182 Recovery notice u/s 138(2) issued vide No.1155 dated the proceeding and report compliance
was not levied 28.11.2019 to audit/FBR by 26.12.2014
as taxpayer fail DAC Directive dated 08.03.2016:
to furnish return RTO informed that penalty amounting to

16
within time and Rs.59076/- has been charged. DAC
department directed the RTO to recover the

Page
also issued amount, get the same verified from
refund without audit and final compliance report in the
imposition of matter should be submitted by
late filing of 21.03.2016.
penalty u/s 182 18.04.2018
which result
loss of revenue RTO informed that tax demand is
under recovery. DAC directed the
RTO to enforce recovery and report
final compliance by 15.05.2018.
DAC Directive dated 28.10.2019

16
 DAC observed with concern that
despite lapse of considerable
time, recovery could not be
affected. DAC therefore, directed
the CCIR to personally intervene,
enforce recovery and report final
compliance by 06.11.2019.
19 5.4.1/ -do- 443,174 2009 Penalty has been chargedRs.443174/- . Recovery is awaited. 02.12.2019 DAC Directive dated 08.03.2016:
RTO informed that penalty amounting to Rs.443174/- has
13054/ 23.09.2019 Amount charged been charged. DAC directed the RTO to recover the
08 Recovery awaited expedite recovery. amount, get the same verified from audit and final
compliance report in the matter should be submitted by
21.03.2016.
Multan 18.04.2018
Zone RTO informed that tax demand is under
recovery. DAC directed the RTO to enforce
recovery and report final compliance by
15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery
could not be affected. DAC therefore,
directed the CCIR to personally
intervene, enforce recovery and report
final compliance by 06.11.2019.

20 M/s. Fatima 6,315,29 2010 Latest compliance 06.05.2013 02.12.2019 DAC directed the RTO revisit the
5.4.2/ Enterprises 9 A show cause notice for short levy of WWF and excessive case and report compliance to
The reply may be
13052/09 Ld 101073 determination of refund was issued The taxpayer company audit/FBR by 15.09.2013
submitted in the light of

17
declared loss for the tax year 2010 and WWF was charged in
the order u/s 4(4) of WWF Act, 1971 at Rs.3607911/- and the contents of audit
Corporate observation after DAC directives 26.11.2014
same was recovered through excess

Page
Zone allowing appeal effect The DAC directed the RTO to revisit
deductions/payments. The taxpayer company agitated the case in the light of the discussion
against this treatment and filed appeal before the CIR(A) order passed to proceed
further in the matter. in the DAC by 26.12.2014.
who vide his order dated 27.11.2011 deleted the WWF in
DAC Directive dated 08.03.2016:
the light of judgment of honourable High Court under writ
DAC observed that after CIR(A)
petition No.8763/2011 wherein Worker Welfare
deleted the WWF charged by the RTO,
Ordinance, 1971 (WWF Ordinance) through Finance Act
no further appeal was filed on the
2006 & 2008 has been quashed. Since the taxable
understanding that similar matter was
income was not available for the tax year 2010 after
adjustment of brought forward losses. Therefore , the WWF already subjudice before Higher
was not chargeable in this year. Therefore the para may please Courts. However, RTO did not show
be treated as settled. any progress on the issue chargeability

17
 11.11.2014 of minimum tax u/s 113. RTO is
During course of audit verification dated11.11.2014, it directed to furnish written comments
has been demand that the Department to revisit the about the reasons upon which 2nd
case. appeal was not filed, and also apprise
In this regard, it is submitted that the Department is the DAC about minimum tax. Report in
unable to take any action in the light of judgment passed the matter should be submitted by
by the Honourable Lahore High Court in W.P No. 10617 21.03.2016.
dated 0606.2012, wherein the amendments made in 18.04.2018
WWF Ordinance, 1971 in the years 2006 & 2008 have RTO has contested. DAC directed
been declared as unconstitutional.
Similarly, in view of latest judgment pronounced by the the RTO to get its stance verified
Honourable Supreme Court of Pakistan in Civil Appeals from audit and report final
No. 1956 to 1958 of 2006 dated 14.03.2014 wherein it compliance by 15.05.2018
has been held that “ the law which is enunciated by the
High Court under Article 201 becomes binding precedent
DAC Directive dated 28.10.2019
for all forums within the province and the law enunciated RTO has contested. DAC directed the
by this court under Article 189 becomes binding RTO to get it stance verified from audit
precedent for all forum in the country. and report final compliance by 06.11.2019
02.12.2019
As per judgment of Honourable Supreme Court of
Pakistan dated 10.11.2016 in Civil Appeal No.1049
to 1055/2011 has dismissed the decision of
Honourable Sindh High Court regarding charging of
WWF.

21 M/s. Success 4,575,87 2010 Contested. The taxpayer company is an Contention is not acceptable as no 04.01.2012
5.4.2/ Industries 2 industrial undertaking engaged in plant and machinery has been shown The DAC directed to RTO to revisit the
13052/09 (Pvt) Ltd assembling of air conditioners and fulfils vide return of income filed for Tax Year case and get it verified from Audit by

18
3251892-7 the conditions of “manufacture” as laid 2010. 28.02.2012 under intimation to FBR.
Corporate down in section u/s 153(9) of Income 21.08.2013

Page
Zone Tax Ordinance, 2001. DAC directed the RTO to get the
A visit report of the business premises position verified from audit by
being manufacturing of goods was 15.09.2013.
conducted by the ACIRE&C Unit-03, 11.11.2014 26.11.2014
Multan on 01.06.2010 and was duly The DAC directed the RTO to get the
verified by the CIR Zone-II, RTO,Multan Refer to DAC stance verified and report compliance to
which is available on record. audit/FBR by 26.12.2014.
A copy of the sales tax registration 30.09.2019 DAC Directive dated 08.03.2016:
certificate being declared as a Department provided copies/details of Case discussed in detail. DAC directed
“manufacturer” is also available on GDsand Financial statement for T.Y. the RTO to provide complete set of
record. Therefore imports of the taxpayer 2018 in support of manufacturing import documents including GDs and bill
are for self consumption and not for of entry and final accounts, for

18
 commercial sales. activity. However it is required to establishing their contention. The
Therefore, the refund has correctly been provide further credible documentary exercise should be completed by
issued and order u/s 170(4) of the evidence in support of claim of 31.03.2016.
Income Tax Ordinance, 2001 dated manufacturing unit. 18.04.2018
10.06.2011 is self-explanation, hence, no RTO has contested. DAC directed
loss of revenue is involved and the para
may please be treated as settled. 02.12.2019 the RTO to get its stance verified
10.11.2014 As evident from the taxpayer profile from audit and provide proof of
Same as above and allied documents, it is proved that deduction of WHT to audit, and
25.09.2019 the taxpayer company is involved in
Copy of GDs are enclosed as desired.
report final compliance by
manufacturing activity. Therefore,
24.10.2019 departmental contention may be
15.05.2018
Taxpayer is manufacturer and accepted.. DAC Directive dated 28.10.2019
adjusted tax u/s 148 rightly. RTO informed that taxpayer is a
02.12.2019
Furthermore, as taxpayer is manufacturer, and tax deducted u/s
manufacturer and rightly claimed the 148 was adjusted. DAC directed the
adjustment of tax u/s 148.as directed RTO to get its stance verified from
DAC income tax return ,copy of audited audit and report final compliance by
accounts is provided.Para may kindly be
treated as settled. 06.11.2019.

Tax Credit For Tax Deducted U/S 148 Was Incorrectly Claimed
22 M/s. Qadir 29,497,407 2010 Contested. 04.01.2012
30.09.2019 The RTO seeks time to submit reply, the
5.4.2/ Agro 1. That the Taxpayer is an industrial Department provided copies/details DAC directed the RTO to submit definite
12951/07 Industries undertaking engaged in running a solvent of GDs and Financial statement for progress in the matter by 15.03.2012 to

19
0823740 extraction plant for which rape seed/canola T.Y. 2018 in support of Audit / FBR.
Corporat 21.08.2013
seed/ sunflower seed is imported as well manufacturing activity. However it DAC took serious concern for not

Page
e tax credit for as locally purchased as be available and is required to provide further comply its previous DAC directives.
tax deducted warranted by the circumstances which is credible documentary evidence in DAC directed RTO to furnish
u/s 148 was used as raw material for the purposes of support of claim of manufacturing reply/progress to audit/FBR by
incorrectly 15,09.2013.
crushing which results into production of unit during tax year 2010. 26.11.2014
claimed oil and meal and that not even a single The DAC directed the RTO to finalize the
piece of seed imported as well as locally 02.12.2019 proceeding and report compliance to
purchased is sold as such. audit/FBR by 26.12.2014.
As evident from the taxpayer profile DAC Directive dated 08.03.2016:
2. As per observation of audit authorities, it is and allied documents it has been Case discussed in detail. DAC directed
submitted that in Note 13 to the accounts, proved that taxpayer company is the RTO to provide complete set of
under sales, words” sale of rape seeds” valued in manufacturing activity. import documents including GDs and bill
was inadvertently recorded instead of “sale Therefore contention of of entry and final accounts, for
of rape seed oil” i.e. there occurred establishing their contention. The

19
 omission of “Oil “inadvertently. department may be accepted. exercise should be completed by
31.03.2016.
3. That the taxpayer did not make any sale of
any seed whatsoever including imported 18.04.2018
rape seed and that entire purchases of RTO has contested. DAC directed
seeds were used for self consumption. the RTO to get its stance verified
from audit and report final
From the foregoing submissions, it stands compliance by 15.05.2018
explained that no tax credit for tax DAC Directive dated
deducted u/s 148 was incorrectly claimed, 28.10.2019
no imported rape seeds were sold in the
same condition. Refund has rightly been RTO informed that taxpayer is
issued. Para may please be settled. a manufacturer, and tax
24.10.2019 deducted u/s 148 was
Taxpayer has claimed adjustment of tax adjusted. DAC directed the
credit u/s 148 rightly..
02.12.2019 RTO to get its stance verified
Furthermore, as taxpayer is manufacturer and from audit and report final
rightly claimed the adjustment of tax u/s 148.as compliance by 06.11.2019.
directed DAC income tax return ,copy of audited
accounts is provided. Para may kindly be treated
as settled.

Non realization of Workers Welfare Fund

Non recovery of WWF amounting to Rs.12,137,671/- in cases deriving income under Presumptive Tax Regime (PTR)

Non charging of WWF on profit declared as per accounts/return

23 5.5.1/ M/s. 683,54 2010 31.03.2018 DAC took serious concern for not comply its

20
02.12.2019
12980 Yousaf Oil 2 Being PTR income WWF is not leviable. Already charged previous DAC directives. DAC directed RTO to
Mills furnish reply/progress to audit/FBR by

Page
24.10.2019 and recovered in
Multan WWF return. Therefore 15,09.2013.
zone
As per judgment of Honourable Supreme
Court of Pakistan dated 10.11.2016 in Civil contention of
department may DAC directives 26.11.2014
Appeal No.1049 to 1055/2011 has The DAC directed the RTO to get the stance verified
be accepted.
dismissed the decision of Honourable and report compliance to audit/FBR by 26.12.2014.
Sindh High Court regarding charging of DAC Directive dated 08.03.2016:
WWF. Amount charged by RTO. DAC directed the RTO to
02.12.2019 enforce recovery and get the same verified from
As per return for tax year 2010 taxpayer has Audit by 21.03.2016 and furnish final compliance.
charged and accountant for WWF amounting to 18.04.2018
Rs.725,511/-.copy of return is enclosed therefore,

20
 para may kindly be treated as settled RTO has contested. DAC directed the RTO to get
its stance verified from audit and report final
compliance by 15.05.2018
DAC Directive dated 28.10.2019
RTO has contested. DAC directed the RTO to get it
stance verified from audit and report final compliance by
06.11.2019

24 5.5.1/12 Sun Crop 551,55 2010 02.12.2019 DAC took serious concern for not comply its
980 Pesticides 9 WWF Rs. 563421 has been paid through return of Recovery previous DAC directives. DAC directed RTO to
WWF total income for Tax Year 2010. awaited. furnish reply/progress to audit/FBR by 15,09.2013
Multan 24.10.2019
zone As per judgment of Honourable Supreme DAC directives 26.11.2014
Court of Pakistan dated 10.11.2016 in Civil The DAC directed the RTO to get the stance verified
Appeal No.1049 to 1055/2011 has dismissed and report compliance to audit/FBR by 26.12.2014.
the decision of Honourable Sindh High DAC Directive dated 08.03.2016:
Court regarding charging of WWF. Amount charged by RTO. DAC directed the RTO to
enforce recovery and get the same verified from
02.12.2019
Audit by 21.03.2016 and furnish final compliance.
Order passed u/s 4)4) passed on 19.09.2019
( copy enclosed) however, recovery awaited .
18.04.2018
RTO informed that tax demand is under
recovery. DAC directed the RTO to enforce
recovery and report final compliance by
15.05.2018.
DAC Directive dated 28.10.2019

21
DAC observed with concern that despite
lapse of considerable time, recovery could

Page
not be affected. DAC therefore, directed the
CCIR to personally intervene, enforce
recovery and report final compliance by
06.11.2019.

25 5.5.1/129 Crystal 24,419 2010 27.04.2018 02.12.2019 DAC took serious concern for not comply its
80 Feed Recovered rs 24,518/- vide CPR# IT-20190925- previous DAC directives. DAC directed RTO to

21
 Industry 1603-1365662. Para may kindly be treated as Charged and furnish reply/progress to audit/FBR by
Multan 1017310- settled. recovered Rs. 15,09.2013.
zone 2 02.12.2019 24,518/- CPR
WWF As directed by the DAC CPR Rs.24,419/- is dated Provided. DAC directives 26.11.2014
25.09.2019 provided .para may kindly be treated as Therefore The DAC directed the RTO to get the stance verified
settled. contention of and report compliance to audit/FBR by 26.12.2014.
department may DAC Directive dated 08.03.2016:
be accepted. Amount charged by RTO. DAC directed the RTO to
enforce recovery and get the same verified from
Audit by 21.03.2016 and furnish final compliance.
18.04.2018
RTO informed that tax demand is under
recovery. DAC directed the RTO to enforce
recovery and report final compliance by
15.05.2018.
DAC Directive dated 28.10.2019
RTO informed that amount has been
recovered. DAC directed the RTO to provide
proof of recovery and report final
compliance by 06.11.2019.

26 5.5.1/12980 Anees 18,490 201 09-9-2013 Department to DAC took serious concern for not comply its
Textile Mills 0 Order u/s 122(1) was passed on 10/32 dated 13- provide previous DAC directives. DAC directed RTO to
1281962-2 08-2012 creating total tax payable Rs.191765/- supporting furnish reply/progress to audit/FBR by 15,09.2013.
Corporate WWF including WWF Rs.8160/-. The balance tax payable documents
Zone Rs.125953/- was recovered after allowing credit of DAC directives 26.11.2014

22
tax deductions claimed as per return Rs.65812/- Supporting The DAC directed the RTO to get the stance verified
vide CPR # IT-20130628-1490-2363139 dated 28- documents are and report compliance to audit/FBR by 26.12.2014.

Page
06-2013 and IT-20130704-0374-2652524 dated 04- now available DAC Directive dated 08.03.2016:
07-2013. Para may please be treated as settled. Amount charged by RTO. DAC directed the RTO to
22.10.2019 enforce recovery and get the same verified from Audit
02.12.2019
The audit authority proposed to charged WWF at by 31.03.2016 and furnish final compliance.
WWF is not
Rs. 18490 on declared income of Rs. 924547/- for 18.04.2018
leviable as the
tax year 2010. However taxpayer did not declare
taxpayer has RTO has contested. DAC directed the RTO to get its
any income rather loss of (Rs. 924547/-). therefore
declared los at stance verified from audit and report final
WWF is not chargeable. Para may be treated as
Rs. 24,547/-.
settled. Supporting documents are enclosed. compliance by 15.05.2018
Contention
02.12.2019 DAC Directive dated 28.10.2019
may be
As per return for tax year 2010, taxpayer declared
accepted. RTO has contested. DAC directed the RTO to get it stance
loss Rs.924,547/- therefore, WWF is not leviable.

22
 Copy of return is enclosed. Para may kindly be verified from audit and report final compliance by 06.11.2019
treated as settled.

27 5.5.1/12980 Ghazala 132,82 2010 Charged and recovered vide CPR# IT- 02.12.2019 DAC took serious concern for not comply its
Sohail 4 2010101305421199490 RS 127218/-. charged and previous DAC directives. DAC directed RTO to
Multan Zone 0105349-3 IT-20191016-1603-1259740 Rs. 5610/-. recovered Rs. furnish reply/progress to audit/FBR by 15,09.2013.
WWF 132,824/- CPR
02.12.2019 provided. DAC directives 26.11.2014
Recovered vide CPR# IT-2010101305421199490 Therefore The DAC directed the RTO to get the stance verified
RS 127218/-.and seprate CPR no. contention of and report compliance to audit/FBR by 26.12.2014.
IT-20191016-1603-1259740 Rs. 5610/-. department may DAC Directive dated 08.03.2016:
Copies enclosed. Para may kindly be treated as be accepted. Amount charged by RTO. DAC directed the RTO to
settled. enforce recovery and get the same verified from Audit
by 31.03.2016 and furnish final compliance.
. 18.04.2018
RTO informed that tax demand is under recovery.
DAC directed the RTO to enforce recovery and
report final compliance by 15.05.2018.
DAC Directive dated 28.10.2019
RTO informed that amount has been
recovered. DAC directed the RTO to provide
proof of recovery and report final compliance
by 06.11.2019.
28 5.5.1/12980 Exin 40,683 2010 WWF charged amounting to Rs. 41,514 by DAC took serious concern for not comply its
Chemicals passing order under section 4(4) of Worker previous DAC directives. DAC directed RTO to

23
Multan zone Corporation Welfare Ord: 1971 dated 05.09.2013. furnish reply/progress to audit/FBR by 15,09.2013
113387-4 24.10.2019 DAC directives 26.11.2014

Page
WWF As per judgment of Honourable Supreme The DAC directed the RTO to get the stance verified
Court of Pakistan dated 10.11.2016 in Civil and report compliance to audit/FBR by 26.12.2014.
Appeal No.1049 to 1055/2011 has DAC Directive dated 08.03.2016:
dismissed the decision of Honourable Amount charged by RTO. DAC directed the RTO to
Sindh High Court regarding charging of enforce recovery and get the same verified from Audit
by 31.03.2016 and furnish final compliance.
WWF.
18.04.2018
RTO informed that tax demand is under recovery.
DAC directed the RTO to enforce recovery and
report final compliance by 15.05.2018.

23
 DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery could not
be affected. DAC therefore, directed the CCIR
to personally intervene, enforce recovery and
report final compliance by 06.11.2019.
29 5.5.1/12980 Adil Flour 20,089 2010 24.10.2019 DAC took serious concern for not comply its
Mills As per judgment of Honourable Supreme previous DAC directives. DAC directed RTO to
2733252-7 Court of Pakistan dated 10.11.2016 in Civil furnish reply/progress to audit/FBR by 15,09.2013.
Multan Zone WWF Appeal No.1049 to 1055/2011 has
DAC directives 26.11.2014
dismissed the decision of Honourable
The DAC directed the RTO to get the stance verified
Sindh High Court regarding charging of and report compliance to audit/FBR by 26.12.2014.
WWF. DAC Directive dated 08.03.2016:
Amount charged by RTO. DAC directed the RTO to
enforce recovery and get the same verified from Audit
by 31.03.2016 and furnish final compliance.
18.04.2018
RTO informed that tax demand is under recovery.
DAC directed the RTO to enforce recovery and
report final compliance by 15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery could not
be affected. DAC therefore, directed the CCIR
to personally intervene, enforce recovery and

24
report final compliance by 06.11.2019.

Page
30 5.5.1/12980 Hameed 10,055 2010 WWF of Rs. 10,055/- has been charged by the DAC took serious concern for not comply its
Flour Mills taxpayer in the return for the tax year 2010. Copy previous DAC directives. DAC directed RTO to
Multan Zone 2140670-7 of return is enclosed. furnish reply/progress to audit/FBR by 15,09.2013
WWF 24.10.2019
As per judgment of Honourable Supreme DAC directives 26.11.2014
Court of Pakistan dated 10.11.2016 in Civil The DAC directed the RTO to get the stance verified
Appeal No.1049 to 1055/2011 has and report compliance to audit/FBR by 26.12.2014.
dismissed the decision of Honourable DAC Directive dated 08.03.2016:
Sindh High Court regarding charging of Amount charged by RTO. DAC directed the RTO to
enforce recovery and get the same verified from Audit
WWF.
by 31.03.2016 and furnish final compliance.

24
 18.04.2018
RTO informed that tax demand is under recovery.
DAC directed the RTO to enforce recovery and
report final compliance by 15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery could not
be affected. DAC therefore, directed the CCIR
to personally intervene, enforce recovery and
report final compliance by 06.11.2019.
31 5.5.1/12980 Muhammad 16,500 2010 WWF Charged Rs. 16500 DAC took serious concern for not comply its
Younas Recovery awaited. previous DAC directives. DAC directed RTO to
Multan Zone 0102956 24.10.2019 furnish reply/progress to audit/FBR by 15,09.2013
WWF -8 As per judgment of Honourable Supreme
Court of Pakistan dated 10.11.2016 in Civil DAC directives 26.11.2014
Appeal No.1049 to 1055/2011 has The DAC directed the RTO to get the stance verified
and report compliance to audit/FBR by 26.12.2014.
dismissed the decision of Honourable
Sindh High Court regarding charging of DAC Directive dated 08.03.2016:
Amount charged by RTO. DAC directed the RTO to
WWF.
enforce recovery and get the same verified from Audit
by 31.03.2016 and furnish final compliance.
18.04.2018
RTO informed that tax demand is under recovery.
DAC directed the RTO to enforce recovery and
report final compliance by 15.05.2018.

25
DAC Directive dated 28.10.2019
DAC observed with concern that despite

Page
lapse of considerable time, recovery could not
be affected. DAC therefore, directed the CCIR
to personally intervene, enforce recovery and
report final compliance by 06.11.2019.
32 Channu 18,029 2010 24.10.2019 DAC took serious concern for not comply its
5.5.1/12980 flour Mills As per judgment of Honourable Supreme previous DAC directives. DAC directed RTO to
AOP Court of Pakistan dated 10.11.2016 in Civil furnish reply/progress to audit/FBR by 15,09.2013
Multan Zone 124340 Appeal No.1049 to 1055/2011 has
WWF DAC directives 26.11.2014
dismissed the decision of Honourable
The DAC directed the RTO to get the stance verified
Sindh High Court regarding charging of and report compliance to audit/FBR by 26.12.2014.

25
 WWF. DAC Directive dated 08.03.2016:
Amount charged by RTO. DAC directed the RTO to
enforce recovery and get the same verified from Audit
by 31.03.2016 and furnish final compliance.
18.04.2018
RTO informed that tax demand is under recovery.
DAC directed the RTO to enforce recovery and
report final compliance by 15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery could not
be affected. DAC therefore, directed the CCIR
to personally intervene, enforce recovery and
report final compliance by 06.11.2019.

33 5.5.1/12980 Mubarak 12,119 2010 24.10.2019 DAC took serious concern for not comply its
Flour Mills As per judgment of Honourable Supreme previous DAC directives. DAC directed RTO to
Multan AOP Court of Pakistan dated 10.11.2016 in Civil furnish reply/progress to audit/FBR by 15,09.2013
Zone 3062483-5 Appeal No.1049 to 1055/2011 has
WWF DAC directives 26.11.2014
dismissed the decision of Honourable
The DAC directed the RTO to get the stance verified
Sindh High Court regarding charging of and report compliance to audit/FBR by 26.12.2014.
WWF. DAC Directive dated 08.03.2016:
Amount charged by RTO. DAC directed the RTO to
enforce recovery and get the same verified from Audit
by 31.03.2016 and furnish final compliance.

26
18.04.2018
RTO informed that tax demand is under

Page
recovery. DAC directed the RTO to enforce
recovery and report final compliance by
15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery could
not be affected. DAC therefore, directed the
CCIR to personally intervene, enforce
recovery and report final compliance by

26
 06.11.2019.

34 5.5.1/12980 Rao & Sons 14,020 2010 24.10.2019 DAC took serious concern for not comply its
Lessee As per judgment of Honourable Supreme previous DAC directives. DAC directed RTO to
Multan Beno flour Court of Pakistan dated 10.11.2016 in Civil furnish reply/progress to audit/FBR by 15,09.2013
zone Mills AOP Appeal No.1049 to 1055/2011 has
3041073-8 DAC directives 26.11.2014
dismissed the decision of Honourable
WWF The DAC directed the RTO to get the stance verified
Sindh High Court regarding charging of and report compliance to audit/FBR by 26.12.2014.
WWF. DAC Directive dated 08.03.2016:
Amount charged by RTO. DAC directed the RTO to
enforce recovery and get the same verified from
Audit by 31.03.2016 and furnish final compliance.
18.04.2018
RTO informed that tax demand is under
recovery. DAC directed the RTO to enforce
recovery and report final compliance by
15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery could
not be affected. DAC therefore, directed the
CCIR to personally intervene, enforce
recovery and report final compliance by
06.11.2019.

27
35 5.5.1/12980 Mehran 15,000 2010 WWF Charged Rs. 15000 DAC took serious concern for not comply its

Page
Multan Flour Mills Recovery awaited. previous DAC directives. DAC directed RTO to
Zone AOP 16.04.2018 furnish reply/progress to audit/FBR by
1329053-3 Recovery notice u/s 138(1) issued on 15,09.2013
WWF 02.04.2018 to recover the payment.
24.10.2019 DAC directives 26.11.2014
As per judgment of Honourable Supreme The DAC directed the RTO to get the stance verified
Court of Pakistan dated 10.11.2016 in and report compliance to audit/FBR by 26.12.2014.
Civil Appeal No.1049 to 1055/2011 has DAC Directive dated 08.03.2016:
dismissed the decision of Honourable Amount charged by RTO. DAC directed the RTO to
Sindh High Court regarding charging of enforce recovery and get the same verified from
Audit by 31.03.2016 and furnish final compliance.
WWF.

27
 02.12.2019 18.04.2018
At the time of issuance of income tqx RTO informed that tax demand is under
refuns, WWF Rs.15,000/- has been recovery. DAC directed the RTO to enforce
adjusted.
recovery and report final compliance by
15.05.2018.
DAC Directive dated 28.10.2019
DAC observed with concern that despite
lapse of considerable time, recovery could
not be affected. DAC therefore, directed the
CCIR to personally intervene, enforce
recovery and report final compliance by
06.11.2019.

36 12976 M/S 2010 Rs.96,345/ RTO Multan has been requested vide # 8358 dated Audit Remarks dated DAC Directives dated 26.11.2014
Corporate Zone Nasir - 26.03.2015 for issuance of incorporation certificate. In 08.09.2016 The DAC directed the RTO to obtain the incorporation
Ghee corporate certificate is still awaited from RTO, Multan. certificate from RTO Multan and report compliance to
Mills The RTO Multan has once again been requested vide Incorporation certificate Audit /FBR by 26.12.2014.
(Pvt.) Ltd. NO.925 dated 31.08.2016 for issuance of incorporation awaited.
NTN- certificate. DAC Directive dated 08.03.2016:
2862610- 02.12.2019 RTO is directed to provide incorporation certificate by
9 DAC is requested to order for incorporation of the case WWF not chargeable 21.03.2016.
WWF on in the working paper of RTO Multan. due to loss. Contention 18.04.2018
declared 02.12.2019 of the department RTO informed that legal proceedings in this case
Income WWF is leviable on Taxable Income rather isaccepatable. have been initiated. DAC directed the RTO to

28
at then accounting Profit Taxpayer company finalize the proceedings and report final
Rs.4,817, has declared loss at Rs.9,232,385/-for tax compliance by 15.05.2018.

Page
268/- @ year 2010 hence DAC Directive dated 28.10.2019
2% which As per judgment of Honourable Supreme DAC observed with concern that despite lapse of
comes to Court of Pakistan dated 10.11.2016 in Civil
Rs.96,34
considerable time, recovery could not be
Appeal No.1049 to 1055/2011 has affected. DAC therefore, directed the CCIR to
5/- not dismissed the decision of Honourable Sindh
charged personally intervene, enforce recovery and report
High Court regarding charging of WWF. final compliance by 06.11.2019.

28
 37 12831 Loss of 2010 Rs.5.479 CONTESTED. Case wise report is as DAC Directive dated 28.10.2019
Corp. zone Revenue (m) The Audit Observations to charge penalty u/s 182 under: DAC observed with concern that despite
due to in PTR cases are not applicable for tax year
2010, as the explanation to section 182(1) at Sr. lapse of considerable time, recovery
Non levy
of No.1 is inserted by Finance Act, 2011 applicable could not be affected. DAC therefore,
penalty to tax year 2012. As per return of total income for directed the CCIR to personally
u/s 182 tax year 2010, tax payable is tax chargeable less intervene, enforce recovery and report
tax paid/deducted. Tax payable in all PTR cases
for late final compliance by 06.11.2019.
as per return is Nil. Hence minimum penalty of
filing of
Rs. 5000/- chargeable. Furthermore, the S,no.1A
return. &1AA was inserted by Finance,
Act,2013,therefore, re-tranapective effect is not
applicable. Hence observations is wrong and
contested.
Loss of Revenue due to Non levy of penalty u/s 182 for late filing of return. Rs.259,308/-
38 DP No. Nasir Ghee 2010 Rs.259,30 RTO Multan has been requested vide # 8358 dated Audit Remarks dated ssThe DAC directed the RTO to provide incorporation certificate
by 15.09.2013.
12831 Mills (Pvt.) 8/- 26.03.2015 for issuance of incorporation certificate. In 08.09.2016
DAC Directives dated 26.11.2014
Ltd. corporate certificate is still awaited from RTO Multan. The DAC directed the RTO to obtain incorporation certificate from
Corporate Zone Rs.259,308 Incorporation certificate RTO Multan and report compliance to Audit/FBR by 26.12.2014.
Loss of Revenue /-NTN- The RTO Multan has once again been requested vide awaited. DAC Directive dated 08.03.2016:
due to Non levy 2862610-9 NO.925 dated 31.08.2016 for issuance of incorporation RTO is directed to provide incorporation certificate by 21.03.2016.
of penalty u/s certificate. 18.04.2018
182 for late RTO informed that legal proceedings in this case
filing of return. DAC is requested to order for incorporation of the have been initiated. DAC directed the RTO to
finalize the proceedings and report final
case in the working paper of RTO Multan.
compliance by 15.05.2018.
02.12.2019
AS per return of income tax year 2010, the DAC Directive dated 28.10.2019
taxpayer company has declared loss of DAC observed with concern that

29
Rs.9,32385/- .therefore, officer has charged despite lapse of considerable time,
minimum penalty of Rs.5000/- copy of order is recovery could not be affected. DAC

Page
enclosed.
therefore, directed the CCIR to
personally intervene, enforce recovery
and report final compliance by
06.11.2019.

39 5.5.1/12981 Bismillah 2010 384,426 24.10.2019

29
 Cotton As per judgment of Honourable
WWF Ginners Supreme Court of Pakistan dated
AOP 10.11.2016 in Civil Appeal No.1049 to
0684191 1055/2011 has dismissed the decision of
Honourable Sindh High Court regarding
charging of WWF.

40 Multan Zone A. Norrie 2010 46,258 CONTESTED.

Penalty u/s 182 Traders The Audit Observations to charge penalty u/s Refer to DAC as penalty is chargeable on tax
5.3.20/12955/1 NTN- 182 in PTR cases are not applicable for tax year payable even return filed u/s 115(4) and tax
1 1507000 2010, as the explanation to section 182(1) at Sr. deducted as PTR.
No.1 is inserted by Finance Act, 2011 applicable
under section to tax year 2012. As per return of total income
182(1) a for tax year 2010, tax payable is tax chargeable
person who less tax paid/deducted. Tax payable in all PTR
without cases as per return is Nil. Hence minimum
reasonable penalty of Rs. 5000/- chargeable. Furthermore,
excuse fail to the S,no.1A &1AA was inserted by Finance,
furnish Act,2013,therefore, re-trospective effect is not
return/statemen applicable. Hence observations is wrong and
t as required contested.
under sub
section (4) of
section 115
shall be liable
for a penalty
equal to one

30
tenth of the one
percent of tax

Page
payable for
each day of
default.

41 5.3.3/12953/02 2010 107.620 Case has been referred to Audit for remedial 02.12.2019 as return for tax years 2010 and 2011 along-
M/s. Pak action. with cash flow statement is required.
Cogent reasons on
Corp.Zone Arab 06-05-2013 11.11.2014
Fertilizer Asstt; for tax year 2010 has been amended u/s the basis of which Copy of returns and cash flow to be provided

30
(Pvt) Ltd 122(5A) by the CIR Zone-II, RTO, Multan vide action u/s 122(5A)
0786750 order dated 15-03-2012. The issue regarding 30.09.2019
was dropped, be
recovery of mark up from sister concern was Verification report not received.
confronted to the tax payer. As per reply the provided to audit for
interest income was received from sister verification through
concern therefore, reply of the taxpayer was concerned Zonal
accepted and no adverse inference has been
drawn. Copy of order is enclosed. Para may be Commissioner.
treated as settled.

25.09.2019
Required documents provided.
02.12.2019
Asstt; for tax year 2010 has been amended u/s
122(5A) by the CIR Zone-II, RTO, Multan vide
order dated 15-03-2012. The issue regarding
recovery of mark up from sister concern was
confronted to the tax payer. As per reply the
interest income was received from sister
concern therefore, reply of the taxpayer was
accepted and no adverse inference has been
drawn. Copy of order is enclosed. Para may be
treated as settled.

31Page

31