MINUTES OF DAC MEETING OF AUDIT REPORT 2007-08

IN RESPECT OF RTO, MULTAN (19-4-2010 AT LAHORE)

Excess Determination Of Refunds
39

4.1/245

Hyundai
Engineering &
Construction
Co.Ltd.

199798

Rs. 81,679,059/-

W.Paper 2007-08 VRI.MEETING 05 TO 10.4.2010 RTO MN

CONTESTD
Observation of the audit authority is
not admitted. Original assessment
for the charge year 1997-98 was
completed u/s 62 of the repealed
ordinance, 1979 on 14-07-1999 by
the
DCIT
Company
Circle
Peshawar creating refund of Rs.
27,199,383/- and refund voucher for
the same amount was issued on
12-11-1999 by the than assessing
officer.
Assessment was contested in
appeal which was set aside and
fresh assessment was finalized u/s
62/132 on 30-06-2001 at net loss of
(469,660,422). This assessment
was again revised u/s 62/135 on
30-06-2004 and income was
assessed at Rs. 168,412,272/therefore income tax was charged
accordingly. However the assessee
again filed appeal before the CIT
(A) Multan who through its
combined appellate order bearing
A.O No. 600 to 603 dated 14-122004 confirmed main additions
whereas certain additions of P&L
account were deleted or set aside.
The taxpayer preferred 2nd appeal
before the learned ITAT, which was
decided vide ITA No. 323/LB/2005
dated
07-01-2008
whereby it has been directed that all
additions / add backs, which
remained the subject matter of
litigation earlier should be deleted.

To provide the
record to audit
and report
compliance by
30-9-2008

Record will be
produced at the
time of
verification.

Under
examination with
Audit

The DAC directed

the audit to verify
the contention of
the department
by 5-5-2010.

Meaning thereby declared version

of the taxpayer stands accepted.
Appeal effect has been given
resulting in loss of Rs. (23,587,158)
has been assessed creating further
refund of Rs. (17,000,938) vide IT30 dated
30-052008.
As regard observation regarding
incorrect issuance of refund for the
assessment year 2000-01 there is
no connection of this refund with the
refund of tax year 1997-98. Both
refunds issued on 12-11-1999 and
21-12-2006 are legally correct and
in accordance with law.
Audit
observation is on the basis of a
presumption which is un-wanted.
Photo stat copy of IT-30 dated 3005-2008 is enclosed. Audit Para
may be settled.

W.Paper 2007-08 VRI.MEETING 05 TO 10.4.2010 RTO MN