VERIFICATION AS ON 11.08.

2020 OF AUDIT REPORT 2006-07 (DIRECT TAX)

IN RESPECT OF REGIONAL TAX OFFICE MULTAN, HELD AT LAHORE
Short levy of tax due to incorrect computation of tax
S.# Audit Name of the Asstt: Amount Departmental reply Audit Remarks DAC Directives
Para/Unit taxpayer Year as per
audit
1 1.4/425 Multan Cotton 2005 231,025 For the assessment year 2002-03 and T.Y 2003 & 2004 tax rate Subjudice before ITAT To peruse the case
Company. 2006 177,095 were applied at 1.25%. Assessee preferred appeal for these years.
04-02-1197368-4 CIT (A) has directed to apply tax rate of 0.75%. Department has Audit Remarks 17.12.2009
filed 2nd appeal. On receipt of decision for these years further Subjudice before ITAT DAC directed the department to pursue the subjudice
Multan Zone action will be taken accordingly for the Tax Year 2005 &2006. 07.07.2011 to case for early hearing at appropriate forum.
Latest Compliance. 09.07.2011 13.07.2011
This is the case of an AOP derives income from export of cotton Subjudice The DAC directed the RTO To pursue the case at
waste. The taxpayer filed statement u/s 115(4) for the Tax Years appropriate appellate forum.
2005 & 2006. The taxpayer declared tax rate on export @ 0.75% 11.06.2012 TO
instead of 1.25% as per part III of 7th schedule of the Income Tax 13.06.2012 09.07.2012
Ordinance, 2001. The Taxation Officer rectified the case and The DAC has appreciated the efforts of RTO for
charged the short fall of tax andassessee preferred appeal before Subjudice pursuance of the case for earlier hearing and further
CIT (A) who cancelled the assessment vide No.1610, 1611 dated directed to report progress and compliance at the
04.01.2008. 2nd appeal filed by the department on 26.01.2008. 07.07.2012 TO earliest
09.07.2012
Request for early hearing has been made to the Registrar. Subjudice 28.08.2012
06.07.2011 RTO informed that the case is still subjudice before
Reference has been filed by the Department on 14.05.2010 before 08.11.2012 the Honourable High Court
H’ble High Court which is subjudice. Subjudice
22.04.2014 08.11.2012
08.06.2012
Subjudice before The RTO informed that the case is still
Subjudice before High Court
Honorable High subjudice. DAC directed the RTO to pursue the
Legal Advisor has requested the Chief Justice of Lahore High case for early hearing and report compliance
Court
Court Lahore to constitute forthwith a tax and commercial D.B. positively by 15.11.2012
for urgent hearing vide letter dated 06.04.2012
11.08.2020
The RTO informed that the case is still
Legal Advisor has been requested to proceed for early hearing on Subjudice before High
Court. subjudice. DAC directed the RTO to pursue the
out of turn basis vide letter No.37 dated 31.10.2012.
case for early hearing and report compliance
20.11.2012 positively by 15.11.2012.
DAC Directive dated 13.01.15
Legal Advisor has been requested to the Assistant registrar,
The DAC directed the RTO to pursue the case with the
Lahore High Court Multan Bench, Multan to proceed for early
Legal Advisor through Member (Legal), FBR for early
hearing on out of turn basis during the current month vide letter hearing the case.
dated 06.11.2012.

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25.09.2019
On the request of RTO case was fixed by the Court for
hearing on 25.06.2019. But due to “Honorable Justice on
leave” case again re-fixed by office.
06.03.2020
Since the case is subjudice before Lahore High Court,
therefore, the legal advisor has been requested to pursue the
case at the earliest and do the needful for early disposal.
06.07.2020
The case is subjudice before Lahore High Court, since 2010
therefore, the legal advisor has been requested to pursue the
case at the earliest and do the needful for early disposal.
14.07.2020
The case is subjudice before Lahore High Court, since 2010
therefore, the legal advisor has been requested to pursue the
case at the earliest and do the needful for early disposal.
10.08.2020
The case is subjudice before Lahore High Court, since
2010. Letter for early hearing was issued. The legal advisor
was requested for fixation of the case for early hearing in
response thereto the legal advisor stated that due to summer
vacation from 22.06.2020 to 05.09.2020 of the court
application for early hearing cannot be filed.
19.08.2019
RTO informed that the case is subjudice
before LHC since 14.05.2010. DAC
directed the RTO to pursue the case for
early hearing.
DAC Directive dated 07.10.2019
RTO informed that the case is subjudice
before LHC since 14.05.2010. DAC
directed the RTO to pursue the case for
early hearing.
DAC Directive dated 09.03.2020
RTO informed that the case is subjudice
before LHC since 14.05.2010. DAC
directed the RTO to pursue the case for
early hearing.
DAC Directive dated 10.07.2020
RTO informed that the case is subjudice
before LHC since 14.05.2010. DAC
directed the RTO to pursue the case for
early hearing.
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 VERIFICATION AS ON 11.08.2020 OF AUDIT REPORT 2006-07 (DIRECT TAX)
IN RESPECT OF REGIONAL TAX OFFICE MULTAN, HELD AT LAHORE

S.# Audit Name of the Asstt: Amount as Departmental reply Audit Remarks DAC Directives
Para/Unit taxpayer Year per audit
2 16/272 Pride Spinning 2003 to 33,489,074 25.09.2019 DAC Directive dated 07.10.2019
Mills Pvt Ltd 2005 Unit is closed Recovery is awaited. DAC observed with concern that despite lapse of
(31-71- considerable time, recovery could not be
09138992) 06.03.2020 affected. DAC therefore, directed the RTO to
Unit-03 Jurisdiction of the case was transferred from RTO enforce recovery and report final compliance by
Faisalabad to RTO Multan. Assessment proceeding has 09.10.2019.
already been completed. Department has filed appeal
before ATIR in case for the tax year 2005 which is still DAC Directive dated 09.03.2020
pending before ATIR since 25.10.2017. RTO informed that the case is subjudice before
ATIR since 25.10.2017. DAC directed the RTO
06.07.2020 to request for out of turn hearing and pursue the
Department has filed appeal before ATIR in case for the case for early disposal.
tax year 2005 which is still pending before ATIR since
25.10.2017. DAC Directive dated 10.07.2020
RTO informed that the case is subjudice before
10.08.2020 ATIR since 25.10.2017. DAC directed the RTO
The case is still subjudice before ATIR since Oct-2017. to request for out of turn hearing and pursue the
Letter for early hearing vide C.No.36 dated 06.07.2020 case for early disposal.
has been issued.

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 VERIFICATION AS ON 11.08.2020 OF AUDIT REPORT 2006-07 (DIRECT TAX)
IN RESPECT OF REGIONAL TAX OFFICE MULTAN, HELD AT LAHORE

S.# Audit Name of the Asstt: Amount Departmental reply Audit Remarks DAC Directives
Para/Unit taxpayer Year as per
audit
3 3.1/138- Bank Al- 2005 224,433 25.09.2019 DAC Directive dated 07.10.2019
K Habib DAC observed with concern that despite lapse of
Relevant assessment/arrear record is not received in this considerable time, recovery could not be
office from RTO, Karachi. affected. DAC therefore, directed the RTO to
enforce recovery and report final compliance by
06.03.2020
09.10.2019.
Audit para was transferred from RTO Karachi without
relevant assessment / arrear record. RTO Karachi has been DAC Directive dated 09.03.2020.
requested to provide relevant assessment record in order
DAC observed with concern that despite
to recover above mentioned amount.
lapse of considerable time, recovery
06.07.2020 could not be affected. DAC therefore,
Contested: directed the RTO to enforce recovery
Originally audit para was dealt by RTO Karachi. No
and report final compliance within30
assessment record was transferred from RTO Karachi.
RTO Karachi has been requested to provide relevant days.
assessment record in order to recover above mentioned DAC Directive dated 10.07.2020
amount.
DAC showed its serious concern on non
However, as per DP M/s Bank Al-Habib had less
compliance of its earlier directives dated
deposited tax u/s 149 as per following detail:-
09.03.2020 and directed the RTO to recover the
Difference /
Tax Deducted Tax Deposited amount and report final compliance within 15
Short Deposited
days.
24,901,943 24,677,510 224,433
Tax deduction u/s 149 deducted during the month was
required to be deposited in the next month. Therefore, the
para may please be settled.
10.08.2020 11.08.2020
Amount as pointed out
Recovered Rs.224,433/- vide CPR No. IT-20200807-
by Audit is recovered
2139-1056085 (copy enclosed). Para may kindly be through cash.
treated as settled.