DAC MEETING HELD ON 06.10.

2020AT CRTO, LAHORE

AUDIT REPORT 2009-10 IN RESPECT OF RTO MULTAN
LOSS OF REVENUE AMOUNTING TO RS.12354000/- DUE TO NON LEVY OF PENALTY U/S 182 ON WHT AGENTS
S.# Para/DP# Audit T.Y Revenue Departmental Reply Audit Remarks DAC Directives
Observation Involved
1 2.1/07/09 As per MPR 2009-10 12,354,000 WHT agents shown in the MPR during the year 2008-09 include Bank DAC MATTER DAC Directive dated 20.03.2017
Case discussed. DAC
as on 30.06- Branches working in the territorial jurisdiction of RTO Multan. recommended the case for
2009 , 7077 However, these Bank Branches submit WHT statements to their Head Departmental replied that settlement subject to verification
Withholding offices none of which is located in the jurisdiction of RTO Multan. The actual withholding agents by RTO from Audit by
Agents have Head offices file consolidated statements to their respective RTOs (at lying in RTO are 1320 27.03.2017.
not filed Karachi or Lahore). In view of the situation mentioned above, the Bank instead of 7077. DAC Directive dated
statement u/s Branches were deleted from the WHT Agents Monitoring Registers of Department replied that 10.07.2020
165 the concerned units leaving thereby the correct number of WHT Agents allthe bank branch located DAC observed with concern that
comprising ofCoys; AOPs; Departments etc only. in Multan have also been despite lapse a considerable time,
taken up wrongly as required documents could not be
Copies of MPRs for the months of July, August and September are POF withholding agents.
submitted for verification.
for perusal. MPR for July, 2009 shows that totalNo. of WHT agents is DAC therefore, directed the CCIR
to personally intervene and get the
1320. departmental contention verified
11.08.2020 from Audit by 25.07.2020 and
7077 WHA are managers of various bank branches. It is their contention report final compliance.
that the statement u/s 165 are being e-filed by their head offices. Matter pertain to non levy of
penalty for non-filing of DAC Directive dated
Latest Remarks W.H. Statement u/s 165. 06.10.2020.
Penalty amounting to Rs.112,000/- charged in 56 cases. Honable Lahore High Court RTO has contested that
Penalty Amounting to Rs. 1,2242,000/- is not chargeable being 146 has decided that penalty is Honorable Lahore High Court,
WHA are managers of various bank branches. It is their contention that not liaviable because no loss Multan Bench, in its latest
the statement u/s 165 are being e-filed by their head offices. of revenue is involved in tax reference No.04 of
06.07.2020 non-submitting of the
statement. Refers to DAC.
2019 held that if
As per DAC Directive dated 20.03.2017 paramay please be settled.
statement u/s 165 could
10.08.2020
Audit Authorities has already verified that penalty amounting to not be filed within time
Rs.12,242,000/- is not chargeable. For remaining it is submitted that and no loss of revenue
names of the taxpayers were not pointed out against action u/s 182 was is involved therefore,
required. As per MPR for the month of Feb-2010 department had already penalty u/s 182 on late
charged and recovered penalty against the defaulting units wherever filing of statement is not
warranted. Furthermore, Hon’ble Lahore High Court Multan justified. Copy of order
Bench, in its latest tax reference No.04 of 2019 held that has been provided to
statement u/s 165 could not be filed within time and no loss of audit. Position has been
revenue is involved therefore, penalty u/s 182 on late filing of verified. DAC
statement is not justify” It is therefore requested that para may please be recommended the case
settled. for settlement.
28.09.2020
Para already verified and refer to DAC.

1
2
 S.# Para/DP# Audit Observation T.Y Revenue Departmental Reply Audit Remarks DAC Directives
Involved
2 2.3 / 17 M/s. Bilz (Pvt) Ltd 2008 0.467 M 03.03.2017 Reportedly charged and DAC Directive
2172891 The CIR (A) Multan has granted stay for recovery recovered. Payment challans/
of impugned tax demand upto3rdMarch , 2017 or evidence regarding payments DAC Directive dated 20.03.2017
awaited. RTO informed that case is under process
Corporate Zone DP#17 till decision of appeal, whichever is earlier. after CIR(A) has annulled the case through
Para# 2.3 Suppression of 08.07.2013 order dated 17.02.2017. DAC directed the
Sales 14.03.2017 Revisit the case and made RTO to finalize the proceedings under the
The CIR(A) Multan vide order dated 17.02.2017 law at the earliest and report final
proper assessment and credit
compliance by 27.03.2017.
for the tax year 2008 has annulled the impugned verification under report
rectification order with the directions that the onus audit.
lies upon the appellant to produce documentary
20.03.2018
evidence/proof to prove contention taken at 04.09.2015 RTO informed that case is
appellate forum. Recovery awaited. subjudice before ATIR since May, 2017
after the tax demand was deleted by
14.02.2018: CIR(A). DAC directed the RTO to pursue
02.12.2015
Second appeal has been filed on 25.05.2017 before Department has charged the the case for early hearing.
ATIR. Copy of letter is enclosed. suppression of sale of Rs
06.07.2020 1334327 and tax charged at Rs DAC Directive dated 10.07.2020
The case is subjudice before ATIR since May- 2007766. After giving tax RTO informed that the case is
2017. credit of Rs 285602/=. subjudice before ATIR since May,
14.07.2020 Balance tax payable comes to 2017. DAC directed the RTO to
The case is still subjudice before ATIR since May- Rs 1722164/=. Recovery is request for out of turn hearing and
2017. Letter for early hearing has been issued. awaited. pursue the case for early disposal.
08.03.2017
10.08.2020 Recovery awaited.
DAC Directive dated
The case is still subjudice before ATIR since May- 11.08.2020 06.10.2020.
2017. Letter for early hearing vide C.No.36 dated Subjudice before ATIR RTO informed that case is
06.07.2020 has been issued. subjudice before ATIR) since
28.12.2020 May, 2017. DAC directed the
Subjudice before ATIR. Letter for early RTO to pursue the case for early
hearing vide C.No.987 dated 16.09.2020 has hearing and report final
been issued. (copy enclosed) compliance.

(FAHEEMUL HAQ KHAN) (RIZWAN AHMED URFI) ( MUHAMMAD ALI ASIF GILANI)
MEMBER ACCOUNTING CHIEF (ACCOUNTING-DT DIRECTOR GENERAL AUDIT
FBR, ISLAMABAD FBR HEADQUARTER ISLAMABAD INLAND REVENUE & CUSTOMS
LAHORE