Textile Sector 2012-13

DAC MEETING OF APPORTIONMENT OF EXPENSES IN TEXTILE SECTOR
AUDIT REPORT 2012-13 (HEALD ON 21.08.2013 AT LAHORE)

Para 9.1:Short levy of tax due to incorrect apportionment of expenses between normal income and PTR income.

S.No. Audit
Para/A
O No.
Name of taxpayer Amount
involved
Tax
Year
Departmental reply

Audit Remarks
29.07.2013 &
30.07.2013
DAC Directives
21.08.2013
1 9.1/49

Special
Zone
M/s Shah Shamash
Cotton Industries, (Pvt)
Ltd NTN 0133527-8
30.820
2011
Under process.

Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
proceedings report to
audit/FBR BY
15.09.2013.
2 9.1/50

Special
Zone
M/s Al-Hamad
Corporation (Pvt) Ltd
NTN 0101016-6
30326
2011
Under process

Latest Compliance 13.01.2014

Show cause notice u/s 122(5A)/122(9) of the Income
Tax Ordinance, 2001 have been issued vide No.656
dated 22.06.2013. Proceedings will be concluded in
the instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
3 9.1/52
Special
Zone
M/s Fazal Rehman
Fabrics Ltd.
NTN 254644-0
9.344
2011
Under process


Show cause notice u/s 122(5A) of the Income Tax
Ordinance, 2001 have been issued vide No.655 dated
22.06.2013. Proceedings will be concluded in the
instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
4 9.1/53
Special
Zone

M/s Mehmood Textile
Mills Ltd.
NTN 0133340-2
100.633
2011
Under process.

Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
5 9.1/54
Special
Zone
M/s Maqbool Textile
Mills Ltd.
NTN 0711064-2
4.938
2011
Under process


instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
6 9.1/60
Special
Zone
M/s. Abbasi Almadni
Cotton Industries
(3624992-7)
0.249
2011
Under process


Show cause notice issued for compliance dated
30.07.2013.
. DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
7 9.1/61 M/s. Muhammad
Akram & Co.
2543003-3
0.335
2011
Under process


30.07.2013.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
8 9.1/70 M/s. Barat & Brother
Cotton Industries and
oil Mills 1827360-2
0.737
2011
The proceedings under section 122(5A) of the Income
Tax Ordinance, 2001 are under process. Reply of the
taxpayer is awaited.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
9 9.1/71 M/s. Bukhari Industries
1450279-8
1.018
2011
The proceedings under section 122(5A) of the Income
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
10 9.1/112
Special
Zone
M/s. Shujabad
Weaving Mills Ltd
2700524-7
10.368
2011
Under process


instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
11 9.1/115
Special
Zone
M/s Ahmad Fine
Textile Mills Ltd.
NTN 0698059-7
8.332
2011
Under process


instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.

Para 9.2: Excess assessment of loss due to incorrect adjustment of losses & apportionment of expenses between normal income
and PTR income with potential tax effect
12 9.2/58 M/s Fatima Enterprises
NTN 0101073-5

47.793
2011
Under process Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
Para 9.3:Non apportionment of turnover between FTR & PTR resulting short recovery of minimum tax
13 9.3/51
Special
Zone
M/s Colony Mills Ltd,
NTN 2585135-7
1.313
2011
Under process


instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
14 9.3/55
Special
Zone
M/s Reliance
Weaving Mills Ltd.
NTN 0133480-8
42.266
2011
Under process


instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
15 9.3/57
Special
Zone
M/s Ahmad Hassan
Textile Mills Ltd.
Multan NTN
0100978-8
15.090
2011
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
16 9.3/59
Special
Zone
M/s Fatima
Enterprises
NTN 0101073-5
0.099
2011
Under process


instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
17 9.3/62 M/s. Ikhlaq Brothers
Cotton Ginning
Factory & Oil Mills
2144907-4
3.238
2011
The notice u/s 122(5A) has been issued to the
taxpayer as per observation raised by Audit
Authorities for compliance by 02.07.2013 but
remained un attended. The proceedings in this case
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
are under process. 15.09.2013.
18 9.3/65 M/s. Amjad Farooq
Cotton Industries
1615637-4
0.224
2011
Contested
The turnover declared by the taxpayer in return of
income for the tax year under consideration other than
FTR is less than 50M and Section 113(3) (a) provides
exemptions from levy of turnover tax to all such
taxpayers whose declared turnover other than FTR
is less than 50M. The term turnover has been
defined in Section 113(3)(a) of the Income Tax
Ordinance, 2001. Moreover, an agreement was
executed between the PCGA and the department,
which also provides exemption of levy of tax on
supplies of Cotton Seed to the Cotton Ginners if they
have paid tax on cotton lint @ 1%. The CBR (now
FBR) further clarified vide letter c.no.1(4)dt-14/91
dated June, 27, 1994 that no separate addition in
income shall be made on account of sales of cotton
seed and oil cake. The Audit observation of the Audit
Authorities is regarding non-payment of tax on cotton
seeds which in the light of above discussion incorrect.
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
Discussed in detail.
DAC directed the RTO
to initiate the
proceedings as per
content of audit
observation and report
to audit/FBR by
15.09.2013.
19 9.3/66
Sahiwal
Zone
M/s. Awais Cotton
Factory & Oil Mills
25331507
0.429
2011
As per the definition of turnover tax provided in the
section 113 of the Income Tax Ordinance,2001. The
normal turnover remains below the thrash hold
provided for AOPs & IND.

Latest compliance 28.10.2013
Total declared turnover is Rs.620,561,864/- out of
which Rs.570,886,194/- is pertaining to final tax
regime the balance turnover of Rs.49,675,670/-
pertaining to normal turnover. As per the
definition of turnover tax provided in the section
113 of the Income Tax Ordinance,2001. The

to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
20 9.3/67
Sahiwal
Zone
M/s. Awais Cotton
Factory & Oil Mills
Unit-2 2738837-9
0.285
2011

to initiate the
proceedings as per
content of audit

to audit/FBR by
15.09.2013.
21 9.3/68
Sahiwal
Zone
M/s. Baba Farid
Corporation
1744311-3
0.239
2011


to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
22 9.3/69
Multan
Zone
M/s. Bajwa Model
Cotton ginning
Factory & Oil Mills
3151755-2
0.471
2011
Contested The notice u/s 122(5A) has been issued
to the taxpayer. In response to the same the taxpayer
has replied that turnover declared for the tax year
under consideration is inclusive of sales of cotton
seed. If the same is subtracted from total declared
sales the balance amount becomes less than 50M
which is exempt from levy of turnover tax u/s 113
(3)(a) of the Income Tax Ordinance, 2001. Moreover,
an agreement was executed between the PCGA and
the department, which also provides exemption of
levy of tax on supplies of Cotton Seed to the Cotton
Ginners if they have paid tax on cotton lint @ 1%.
The CBR (now FBR) further clarified vide letter
c.no.1(4)dt-14/91 dated June, 27, 1994 that no
separate addition in income shall be made on account
of sales of cotton seed and oil cake. The Audit
observation of the Audit Authorities is regarding non-
payment of tax on cotton seeds which in the light of
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
above discussion incorrect.
Moreover, in response to show cause notice u/s
122(5A) the taxpayer has furnished bifurcation of
sales pertaining to ginning section and oil Mills section
separately in support of his declared results which is
reproduced as under
Ginning Section
1. Sales of cotton lint. Rs.418,693,445/- Tax has been
paid @ 1%
2. Cotton Seeds. Rs. 38,918,836/- (not liable to
turnover tax).
Total Sales. Rs. 457,612,281/-

Oil Mills Section.
1. Cotton Seed Oil. Rs. 11,637,313/-
2. Oil Cake. Rs. 34,069,616/--
Total:- Rs.45,706,929/-
The turnover is less than 50M
23 9.3/72
Sahiwal
Zone
M/s. Chaudhary
Model Cotton
Ginners 2145798-7
0.235
2011


to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
24 9.3/73
Special
Zone
M/s. Elahi Fabrics
1525690-1
0.334 2011
Under process

instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.

25 9.3/74
special
Zone
M/s Ghaffar Cotton
Ginning, Pressing &
oil Mills, multan
0.618 2011 Under process


are under process.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
26 9.3/75
Multan
Zone
M/s. Habib Cotton
Industries & Oil Mills,
MmianCchannu
1.215 2011 The notice u/s 122(5A) has been issued to the
are under process.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
27 9.3/76
Sahiwal
Zone
M/s. Haji Ghafoor&
Co. 1298909-6
0.731
2011
30.07.2013.

Assessment u/s 122(5A) has been completed on
02.09.2013 creating demand of Rs.819586/-. Copy
of order enclosed.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
28 9.3/77
Sahiwal
Zone
M/s. Hajvery Cotton
Factory & Oil Mills
2490908-4
0.540
2011
30.07.2013.

Assessment u/s 122(5A) has been completed on
02.09.2013 creating demand of Rs.568980/-. Copy
of order enclosed.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
29 9.3/78
Multan
Zone
M/s Hiraj Cotton
Ginning Pressing &
Oil Mills
KABIRWALA.
0.615 2011 Contested
taxpayer. In response the taxpayer has replied that
turnover declared amounting to Rs.138813594/-
pertaining to the NTR for the tax year under
consideration is inclusive of sale of cotton seed
amounting to Rs.59005093/-. On balance amount of
Rs.79808501/- turnover tax under section 113 has
properly been paid @1% by the taxpayer as per
agreement with the PCGA as discussed above. The
Audit observation of the Audit Authorities is regarding
non-payment of tax on cotton seeds which in the light
of above discussion incorrect.
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
Moreover, in response to show cause notice
u/s 122(5A) the taxpayer has furnished bifurcation of
in support of his declared results which is reproduced
as under

1. Sales of cotton lint. Rs. 690,574,906/- Tax has
been paid @ 1%
2. Cotton Seeds. Rs. 32,551,930/- ( not liable
to turnover tax).
3. Oil cake. Rs.46,391,115/-
4. Waste. Rs. 358,054/-
5. Oil dirt. Rs,.507,402/-
6.Coton Seeds. Rs.59,005,093/- (Not liable
to turnover tax )

June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
30 9.3/79
Multan
Zone
M/s Al-Hhussain
Cotton Ginners,
DGK
is less than 50M. The term turnover has been define
in Section 113(3)(a) of the Income Tax Ordinance,
2001. Moreover, an agreement was executed
between the PCGA and the department, which also
provides exemption of levy of tax on supplies of
Cotton Seed to the Cotton Ginners if they have paid
tax on cotton lint @ 1%. The CBR (now FBR) further
clarified vide letter c.no.1(4)dt-14/91 dated June, 27,
1994 that no separate addition in income shall be
made on account of sales of cotton seed and oil cake.
The Audit observation of the Audit Authorities is
regarding non-payment of tax on cotton seeds which
in the light of above discussion incorrect.
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
31 9.3/80
Multan
Zone
M/s HussainIrfan
Cotton Ginners,
D.G.KHAN
0.130 2011

-do-

-do- Discussed in detail.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
32 9.3/81
Multan
Zone
M/s. AttahurRehman
Cotton Industries
0100989-3

30.07.2013.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
33 9.3/82
Multan
Zone
M/s Ittefaq Cotton
Ginners & Oil Mills,
D.G.KHAN
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
34 9.3/83
Sahiwal
Zone
M/s. Ittefaq
Industries Cotton
Ginning Factory
2029783-1
0.049
2011

provided for AOPs & IND
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.

35 9.3/84
Multan
Zone
M/s.
JannatIndustries
KABIRWALA.
0.698 2011 The case pertains to the RTO, Faisalabad.
Request for transfer of audit observation has
already been submitted vide this office letter
No.1685 dated 26.06.2013.
Incorporation
certificate to be
produce to audit.
to provide the
incorporation
certificate to audit by
15.09.2013.
36 9.3/87
Multan
Zone
M/s. Khan Cotton
Iindustries, CHOWK
AZAM/
1.288 2011 The proceedings under section 122(5A) of the Income
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
37 9.3/88
Multan
Zone
Mian Cotton
Industries & Oil Mills
1.82
2011
As per online verification, NTN mentioned in the
audit observation for Mian Cotton Industries is
actually allotted to M/s. JhoolayLaal Cotton
Ginning.
to get the position
verified by audit by
15.09.2013.

38 9.3/89
Multan
Zone
M/S Mehar Cotton
Iindustries, KHANEWAL
taxpayer. In response whereto the taxpayer has
replied that turnover declared for the tax year under
consideration is inclusive of sale of cotton seed etc. If
the same is subtracted from total declared sales the
balance amount becomes less than 50M which is
exempt from levy of turnover tax u/s 113 (3)(a) of the
Income Tax Ordinance, 2001. Moreover, an
agreement was executed between the PCGA and the
department, which also provides exemption of levy of
tax on supplies of Cotton Seed to the Cotton Ginners
if they have paid tax on cotton lint @ 1%. The CBR
(now FBR) further clarified vide letter c.no.1(4)dt-
14/91 dated June, 27, 1994 that no separate addition
in income shall be made on account of sales of cotton
seed and oil cake (copy enclosed). The Audit
reproduced as under
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
Ginning Section
1. Sales of cotton lint. Rs. 698,642,971/- Tax has
been paid @ 1%
2. Cotton Seeds. Rs.85,674,821/- ( not
liable to turnover tax.)
3. Waste. Rs. 601,664/-

Oil Mills Section.
1. Cotton Seed Oil. Rs. 25,054,867/-
2. Oil Cake. Rs. 24,718,658/-
3. Oil Dirt. Rs. 153,085/-
Total:- Rs.49,576,563/-
Turnover is less than 50(M)
39 9.3/90
Multan
Zone
AL-Manzoor Cotton
Industries 1725600-3
consideration is inclusive of sale of cotton seed etc. If
the same is subtracted from total declared sales the
seed and oil cake (copy enclosed). The Audit
reproduced as under
Ginning Section
1. Sales of cotton lint. Rs.323,152,217/- Tax has
been paid @ 1%
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
2. Cotton Seeds. Rs.33,867,928/- (not liable to
turnover tax.)
3. Waste. Rs.198,470/-
Total Sales. Rs.357,218,615/-

Oil Mills Section.
1. Cotton Seed Oil. Rs.16,367,347/-
2. Oil Cake. Rs.33,369,750/-
3. Oil Dirt. Rs. 67,371/-
Total:- Rs.49,804,468/-
Turnover is less than 50(M)
40 9.3/91
Multan
Zone
M/S MACCA COTTON
INDUSTRIES,
RAJANPUR
taxpayers whose declared turnover other than FTR is
less than 50M. The term turnover has been define in
Section 113(3)(a) of the Income Tax Ordinance, 2001.
Moreover, an agreement was executed between the
PCGA and the department, which also provides
exemption of levy of tax on supplies of Cotton Seed to
the Cotton Ginners if they have paid tax on cotton lint
@ 1%. The CBR (now FBR) further clarified vide
letter c.no.1(4)dt-14/91 dated June, 27, 1994 that no
of sales of cotton seed and oil cake. The Audit

Moreover, in response to show cause notice
u/s 122(5A) the taxpayer has furnished bifurcation of
reproduced as under
Ginning Section
1. Sales of cotton lint. Rs.323,152,217/- Tax has
been paid @ 1%
2. Cotton Seeds. Rs.33,867,928/- (not liable to
turnover tax).
3. Waste. Rs.198,470/-
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
Total Sales. Rs.357,218,615/-

Oil Mills Section.
1. Cotton Seed Oil. Rs.16,367,347/-
2. Oil Cake. Rs.33,369,750/-
3. Oil Dirt. Rs. 67,371/-
Total:- Rs.49,804,468/-
Turn over is less than 50(M)
41 9.3/92
Multan
Zone
Khalil Cotton Industries,
D.G.K
is less than 50M. The term turnover has been
defined in Section 113(3)(a) of the Income Tax
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
42 9.3/93
Multan
Zone
M/s. Mukhtar Cotton
Ginners, Khanewal.
Assessment
proceedings may
be finalized at the
earliest.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
43 9.3/94
Multan
Zone
M/s. MuzamamalLatif
Cotton Industries
2396490-1
0.466
2011
Case pertains to Multan Zone Discussed in detail.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
44 9.3/95
Multan
Zone
M/s. Nasuha Model
Cotton Industries, DGK
Assessment
proceedings may
be finalized at the
earliest.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
45 9.3/96
Sahiwal
Zone
M/s. Pak Millat Cotton
Ginning Factory
2210406-2
2.019
2011
30.07.2013.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
46 9.3/97
Multan
Zone
M/s. Prime Cotton
Industries, Khanewal
Assessment
proceedings may
be finalized at the
earliest.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
47 9.3/98
Sahiwal
Zone
M/s. Quality Cotton
ginners 2475548-6
0.557
2011
310.07.2013.
Assessment
proceedings may
be finalized at the
earliest.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
48 9.3/99
Multan
Zone
M/s. Rehmat Industries,
Khanewal.
consideration is inclusive of sale of cotton seed. If the
same is subtracted from total declared sales the
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
49 9.3/100
Multan
Zone
Nishat Ashraf Cotton
Ginners, Khanewal
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
50 9.3/101
Multan
Zone
M/s. Sattar Cotton
Ginners 3170041-1
0.450
2011
Case pertains to Multan Zone DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
51 9.3/102
Sahiwal
Zone
M/s. Nizami Cotton
Factory & Oil Mills
2632769-4
0.362
2011
provided for AOPs & IND. Latest
compliance 28.10.2013
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
pertaining to normal turnover. As per the definition
of turnover tax provided in the section 113 of the
Income Tax Ordinance,2001. The normal turnover
remains below the thrash hold provided for AOPs
& IND
52 9.3/103
Multan
Zone
M/s. ShurjeelAmjad
Cotton Industries
0.187
2011
Contested The turnover declared by the taxpayer in
return of income for the tax year under consideration
other than FTR is less than 50M and Section 113(3)
(a) provides exemptions from levy of turnover tax to all
such taxpayers whose declared turnover other than
FTR is less than 50M. The term turnover has been
define in Section 113(3)(a) of the Income Tax
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
53 9.3/104
Multan
Zone
M/s. Subhan Allah
Cotton Industries
1885325-3
0.382
2011
Case returned to Audit authorities as the same
does not fall within the jurisdiction of RTO Multan.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
54 9.3/105`
Multan
Zone
M/s. Subhan Cotton
Industries
0.168
2011
Contested
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
which was
applicable to ITO
1979 which has
been repealed.
55 9.3/106
Multan
Zone
M/s. Waseem Cotton
Industries
1686610-0
0.061
2011
Contested The turnover declared by the taxpayer in
return of income for the tax year under consideration
other than FTR is less than 50M and Section 113(3)
(a) provides exemptions from levy of turnover tax to all
such taxpayers whose declared turnover other than
FTR is less than 50M. The term turnover has been
define in Section 113(3)(a) of the Income Tax
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
56 9.3/107
Sahiwal
Zone
M/s. YousafAyub
Corporation 2495892-1
0.405
2011

pertaining to normal turnover. As per the definition
of turnover tax provided in the section 113 of the
Income Tax Ordinance,2001. The normal turnover
remains below the thrash hold provided for AOPs
& IND
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.
57 9.3/108
Special
Zone
M/s. Shaoib Sulman
Textile Mills 2555230-9
3.692
2011
instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
58 9.3/109
Multan
Zone
M/s Ashiq Ali Chudary,
Multan.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
59 9.3/110
Multan
Zone
M/s. Khalid & Co. C/o
Khalid Ali 3211406-7
The contention of
the department is
not acceptable as
turnover from all
sources is greater
than 50 (m). RTO
to reconsider the
case for levy of
minimum tax.
Further department
to see the
applicability of
Circular dated
June,27,1994,
which was
applicable to ITO
1979 which has
been repealed.
to initiate the
proceedings as per
content of audit
to audit/FBR by
15.09.2013.

60 9.3/116
Special
Zone
M/s Arain Mills Ltd.
NTN 0225871-4
6.271
2011
Under process


instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
61 9.3/117
Special
Zone
M/s Arain Textile Mills
Ltd.
NTN 0658181
3.423
2011
Under process


instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
62 9.3/118
Special
Zone
M /s Maqbool Usman
Fibers Ltd,
NTN 2232163
9.509
2011
Under process


instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
63 9.3/119
Special
Zone
M/s Marral Fibers (Pvt)
Ltd.
NTN 22664438-5
0.820
2011
Under process


instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
64 9.3/120
Special
Zone
M/s Raheem Bakhsh
Textile Mills Ltd. NTN
11466215-4
3.516
2011
Under process


instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
65 9.3/121
Special
Zone
M/s Suleman Spinning
Mills Ltd.
NTN 1146615-4
6.507
2011
Under process


instant month.
Assessment
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
66 9.3/122
Special
Zone
M/s Nippon Carliner (Pvt)
Ltd.
NTN 1146615-4
8.633
2011
proceedings may
be finalized at the
earliest.
DAC directed to RTO
to complete the
audit/FBR BY
15.09.2013.
Para 9.4: Non declaration of proceeds from cotton seed resulting short levy of tax
67 9.4/111
Multan
Zone
Abdullah Cotton Ginners,
Multan
380866 2011 CONTESTED
An agreement was executed between the PCGA and
the department (copy enclosed), which provides
RTO to revisit the
case with respect
to applicability of
DAC directed to RTO to
complete the
of sales of cotton seed and oil cake (copy enclosed).
Circular dated
27,June 1994. The
said circular was
applicable for
Income Tax
Ordinance, 1979.
audit/FBR BY
15.09.2013.
68 9.4
Multan
Zone
Allah Tawakal Cotton
Ginners, Multan
301569 2011 CONTESTED
An agreement was executed between the PCGA and
the department (copy enclosed), which provides
of sales of cotton seed and oil cake (copy enclosed).
RTO to revisit the
case with respect
to applicability of
Circular dated
27,June 1994. The
said circular was
applicable for
Income Tax
Ordinance, 1979.
complete the
audit/FBR BY
15.09.2013.
69 9.4
Multan
Zone
Data Cotton Ginners,
Multan.
124192 2011 --do-- -do- DAC directed to RTO to
complete the
audit/FBR BY
15.09.2013.
70 9.4
Multan
Zone
Darishak Cotton
Industries, Rajanpur.
complete the
audit/FBR BY
15.09.2013.
71 9.4
Multan
Zone
Global Cotton Industries,
Rajanpur.
complete the
audit/FBR BY
15.09.2013.
72 9.4
Multan
Zone
Hassan Cotton Factory
complete the
audit/FBR BY
15.09.2013.
73 9.4 Abdullah Maaz Cotton 987391 2011 --do-- -do- DAC directed to RTO to
Multan
Zone
Ind., D.G.K complete the
audit/FBR BY
15.09.2013.
74 9.4
Multan
Zone
Mastooi Cotton Factory,
D.G.K
complete the
audit/FBR BY
15.09.2013.
75 9.4
Multan
Zone
Mohib Cotton Industry,
Rajanpur
complete the
audit/FBR BY
15.09.2013.
76 9.4
Multan
Zone
Al-nasar Cotton Industry
complete the
audit/FBR BY
15.09.2013.
77 9.4
Multan
Zone
Ahmed Saad Cotton
Industries
complete the
audit/FBR BY
15.09.2013.
78 9.4
Multan
Zone
Al-talib Cotton Industries
complete the
audit/FBR BY
15.09.2013.
79 9.4
Multan
Zone
ZahidSadiq Cotton Ind.
complete the
audit/FBR BY
15.09.2013.
80 9.4
Sahiwal
Zone
Ajmeer Cotton Ginners
3157556-7
303272 2011 The sale of cotton seed is covered under the tax paid
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.
81 9.4
Sahiwal
Zone
Akram& Co. Cotton
Ginners 2120116
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.

82 9.4
Sahiwal
Zone
Ali Sammad Trader,
Cotton Ginners & Pressing
Factory.
2492546-2
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.
83 9.4
Multan
Zone
Anmol Cotton Ginners 225086 2011 The sale of cotton seed is covered under the tax paid
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.
84 9.4
Sahiwal
Zone
Five Star Cotton Ginners
2151100-4
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.
85 9.4
Sahiwal
Zone
Hafiz Cotton Ginners
1270338-9
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.
86 9.4
Sahiwal
Zone
Kashmir Cotton Factory 390439 2011 The sale of cotton seed is covered under the tax paid
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.
87 9.4
Multan
Zone
Zafar Brothers Cotton
Ginning & Pressing
Factory
531259 The sale of cotton seed is covered under the tax paid
@1% on cotton lint.
complete the
audit/FBR BY
15.09.2013.

Para 9.6:Incorrect adjustment of carried forward losses resulting non/short levy of tax
88 9.6/56
Special
Zone
M/s. Roomi Cotton
Ginning Industries (Pvt)
Ltd
2.015
2011
proceedings may be
finalized at the
earliest.
DAC directed to
RTO to complete
the proceedings
report to audit/FBR
BY 15.09.2013.
Para 9.7:Acceptance of invalid returns of taxpayer against the provisions of the Income Tax Ordinance, 2001
89 9.7/113
Special
Zone
M/s Al-Hilal Industries
(Pvt) Ltd, NTN 0800582-6

2011
Contested
Since taxpayer filed audited accounts.
Audited Accounts
duly certified by the
Charted Accountant
not furnished by the
taxpayer. RTO to
enforce the filing of
audited accounts by
the taxpayer.
DAC directed the
RTO to provide the
requisite
documents and get
the position verified
to audit by
15.09.2013.
90 Special
Zone
M/s FazalRehman Fabrics
Ltd.
NTN 2546440-0

2011
Contested
-do- DAC directed the
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.
91 Special
Zone
M/s Maqbool Textile Mills
Ltd.
NTN 0711064-2

2011
Contested
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.

92 Special
Zone
M/s Masood Fabrics Ltd.
NTN 1417347-6

2011
Contested
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.
93 Special
Zone
M/s Mehmood Textile
Mills Ltd.

2011
Contested
Audited Accounts
duly certified by the
DAC directed the
RTO to provide the
NTN 0133340-2 Charted Accountant
not furnished by the
taxpayer. RTO to
enforce the filing of
audited accounts by
the taxpayer.
requisite
documents and get
to audit by
15.09.2013.
94 Special
Zone
M/s RCA (Pvt) Ltd.
NTN 0133459-0

2011
Contested
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.
95 Special
Zone
M/s Roomi Industries
NTN 2963239-7

2011
Contested
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.
96 Special
Zone
M/s Shah Shamash
Cotton Industries (Pvt) Ltd.
NTN 0133527-8

2011
Contested
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.
97 Special
Zone
M/s Shujabad Weaving
Mills Ltd.
NTN 2700524-7

2011
Contested
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.
98 Special
Zone
M/s Allah Wasaya
Spinning Mills Ltd. NTN
2195628-6

2011
Contested
RTO to provide the
requisite
documents and get
to audit by
15.09.2013.
99 Special M/s Zainab Textile Mills 2011 Contested -do- DAC directed the
Zone (Pvt) Ltd.
NTN 2497365-3
Since taxpayer filed audited accounts. RTO to provide the
requisite
documents and get
to audit by
15.09.2013.

Para 9.8: Excess adjustment of brought forward depreciation and business losses against declared income
100 9.8/114
Special
Zone
M/s Acro Spinning &
Weaving Mills Ltd. NTN
0709640-2

2011
proceedings may be
finalized at the
earliest.
DAC directed to
RTO to complete
the proceedings
report to audit/FBR
BY 15.09.2013.
101 Special
Zone
M/s Ahmad Hassan
Textile Mills Ltd. NTN
0100978-8

2011
Under process


instant month.
Assessment
proceedings may be
finalized at the
earliest.
DAC directed to
RTO to complete
the proceedings
report to audit/FBR
BY 15.09.2013.
102 Special
Zone
M/s Al-Hamad
Corporation (Pvt) Ltd.
NTN 0101016-6

2011
proceedings may be
finalized at the
earliest.
DAC directed to
RTO to complete
the proceedings
report to audit/FBR
BY 15.09.2013.
103 Special
Zone
M/s Ghafoor Cotton Mills
(Pvt) Ltd.
NTN 0133398-4

2011
proceedings may be
finalized at the
earliest.
DAC directed to
RTO to complete
the proceedings
report to audit/FBR
BY 15.09.2013.
104 Special
Zone
M/s Kh.Bashir Ahmad &
Co. (Pvt) Ltd. NTN
3179847-7

2011
proceedings may be
finalized at the
earliest.
DAC directed to
RTO to complete
the proceedings
report to audit/FBR
BY 15.09.2013.
105 Special
Zone
M/s Reliance Weaving
Mills Ltd.
NTN 0133480-8

2011
Under process


Assessment
proceedings may be
finalized at the
earliest.
DAC directed to
RTO to complete
the proceedings
report to audit/FBR
instant month.
BY 15.09.2013.

Textile Sector 2012-13

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Textile Sector 2012-13

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DAC MEETING OF APPORTIONMENT OF EXPENSES IN TEXTILE SECTOR

AUDIT REPORT 2012-13 (HEALD ON 21.08.2013 AT LAHORE)

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