' SYED MANSOOR ALI SHAH, J.---This judgment shall decide this petition, as well as, petitions mentioned in Schedule-A to this judgment as similar questions of law and facts arise in these cases.
2. After arguing the case at some length, the parties have arrived at the following consensus:--
(a) That notices for selection of audit for Tax Year 2011, which have been impugned in the instant petition, as well as, in the petitions mentioned in Schedule-A may be set aside and the process of audit be initiated afresh by the FBR after framing the parameters for selection of audit, keeping in view the following guidelines:
(i) That Federal Board of Revenue in terms of section 214C of the Income Tax Ordinance, 2001, section 72B of the Sales Tax Act, 1990 and section 42B of the Federal Excise Act, 2005, shall frame three separate sets of parameters for selection of cases for audit under the three tax laws;
(ii) That after the selection process has been carried out independently under all the three tax laws, if the Federal Board of Revenue wishes to further narrow down the selection through carrying out risk analysis (as already done in these cases) the same may be done separately under each tax law;
(iii) That a day or so prior to the selection of cases for audit the Federal Board of Revenue shall publicize the parameters settled, in the manner above, for the concerned tax year in the print media, as well as, upload the same on the website of FBR to facilitate the taxpayers;
(iv) That notices (separate notices under different tax laws) issued to the taxpayers selected for audit shall clearly specify the parameters attracted in their cases in order to make the process SR.
NO.WRITE PETITION NO. TITLE OF THE CASE
1. W.P.No.31754 of 2012 Ahsan Iqbal Waris v. Commissioner Inland Revenue and others
2. W.P.No.31830 of 2012 Chenab Rice Mills v. The Federation of Pakistan and others
3. W.P.No.31752 of 2012 Shahzad Hussain v. Commissioner Inland Revenue and others
4. W.P.No.31742 of 2012 Messrs Anmol Engineering Works.
SR.
NO.WRITE PETITION NO. TITLE OF THE CASE v. Commissioner Inland Revenue and others
5. W.P.No.31740 of 2012 Messrs Symans Pharmaceuticals (Pvt.) Ltd. v.
Commissioner Inland Revenue and otherstransparent;
(v) The Federal Board of Revenue will also consider establishing a Grievance/Review Panel to attend to the issues/questions arising out of the audit selection process. This will alleviate the anxiety of the taxpayers and may also avoid further litigation.
3. Additionally, the petitioners vehemently argued that the Federal Board of Revenue has not framed the parameters for selection of audit under the aforesaid laws. The parameters reflected in Letter dated 24-10-2012 issued by the Federal Board of Revenue Taxpayer's Audit Wing has been issued under the signature of M. Majid Qureshi, Chief (Taxpayer's Audit) (who is present in person) but does not have the B approval of the FBR. In response Dr. Tariq Masood, Additional Commissioner, FBR (HQ) Karachi on behalf of respondent FBR referred to Section 8 of the Federal Board of Revenue Act, 2007, as well as, Rule 3 of the Federal Board of Revenue Rules, 2007 ("Rules") to submit that said powers stand delegated to Member (Audit). He, however, admitted that there is no specific notification delegating the powers under the aforementioned audit provisions in favour of the Member (Audit) but justified the same by relying on Rule 3(3) of the Rules to submit that the said powers can be exercised by the Member (Audit) till delegation takes place.
4. I was minded to proceed further to consider the question of delegation of the powers of the Board in terms of section 214C of the Income Tax Ordinance, 2001, section 72B of the Sales Tax Act, 1990 and section 42B of the Federal Excise Act, 2005 along with the wires of Rule 3 in the background of the parent Act i,e,, Federal Board of Revenue Act, 2007 and the legality of Letter dated 24-10-2012 issued by Chief (Taxpayer's Audit). However, at this stage learned counsel for the respondent Federal Board of Revenue, namely Mr. Muhammad Ilyas Khan, Advocate assured the court that as the entire audit process is being initiated afresh, FBR will also reconsider the question of delegation and will proceed in framing the parameters for selection of audit strictly in accordance with law. On this assurance given by the learned counsel for the respondent FBR, the question of delegation does not require further deliberation in this case.
5. In view of above arrangements arrived at between the parties, the impugned notices for selection of audit for the Tax Year 2011 are set aside. Respondent FBR will initiate the process of audit afresh in the light of the above guidelines and fully comply with the mandate given under section 214C of the Income Tax Ordinance, 2001, section 72B of the Sales Tax Act, 1990 and, section 42B of the Federal Excise Act, 2005.
6. These writ petitions are, therefore, allowed in the above terms with no order as to cost.
SCHEDULE-A 6 W.P.No.31618 of 2012 Presson Descon International (Pvt.) Ltd. v. The Federation of Pakistan and others
7. W.P.No.31616 of 2012 Flying Paper Industries Ltd. v. The Federation of Pakistan and others
8. W.P.No.31614 of 2012 Flying Cement Company Ltd. v. The Federation of Pakistan and others
9. W.P.No.31612 of 2012 Fazal Cloth Mills Ltd. v. The Federation of Pakistan and others
10. W.P.No.31538 of 2012 Messrs Nestle Pakistan Ltd. v. The Federal Board of Revenue and others
11. W.P.No.31617 of 2012 Flying Board and Paper Products Ltd. v. The Federation of Pakistan and others
12. W.P.No.31619 of 2012 Poly Paper and Board Mills (Pvt.) Ltd. v. The Federation of Pakistan and others
13. W.P.No.31743 of 2012 Messrs Chenab Limited v. The Federation of Pakistan and others
14. W.P. No.31737 of 2012 Messrs Alka (Pvt.) Ltd. v. The Commissioner Inland Revenue and others
15. W.P. No.31537 of 2012 DG Khan Cement Co. Ltd. v. The Federal Board of Revenue and others
16. W.P. No.31613 of 2012 Vega Pharmaceuticals (Pvt.) Ltd.
SR.
NO.WRITE PETITION NO. TITLE OF THE CASE v. The Federation of Pakistan and others
17. W.P. No.31615 of 2012 Zaman Paper and Board Mills (Pvt.) Ltd. v. Federation of Pakistan and others
18. W.P. No.31753 of 2012 Naseer Ahmad Baloch v. Commissioner Inland Revenue and others
19. W.P. No.31757 of 2012 Messrs Haji Sons v. The Federation of Pakistan and others
20. W.P. No.31769 of 2012 Messrs Packages Club v. The Commissioner Inland Revenue and others
21. W.P. No.31848 of 2012 Messrs Koh-i-Noor International v. Federation of Pakistan and others
22. W.P. No.31849 of 2012 Messrs Mughal Electric Engineering Co. v. Federation of Pakistan and others
23. W.P. No.31846 of 2012 Messrs Hale Enterprises v. The Federation of Pakistan and others
24. W.P. No.31857 of 2012 Messrs Bilal Textiles (Pvt.) Ltd. v. The Commissioner Inland Revenue and others
25. W.P. No.31858 of 2012 Family Hospital (Pvt.) Ltd. v. The Commissioner Inland Revenue and others
26. W.P. No.31859 of 2012 Messrs Wire Manufacturing Industry Ltd. v. The Commissioner Inland Revenue and others
27. W.P. No.31860 of 2012 MessrsShaheen Dyeing v. The Commissioner Inland Revenue and others SR.
NO.WRITE PETITION NO. TITLE OF THE CASE
28. W.P. No.31629 of 2012 Messrs Commercial Textile Dyeing and Printing Industries v. The Commissioner Inland Revenue and others
29. W.P. No.31637 of 2012 Messrs Royal Tubes (Pvt.) Ltd. v. Federation of Pakistan and others
30. W.P. No.31611 of 2012 Messrs The Erectors v. Commissioner Inland Revenue and others
31. W.P. No.31571 of 2012 Messrs Vita Pakistan Ltd. v. The Federation of Pakistan and others
32. W.P. No.31303 of 2012 Messrs Maisonette Luxury Apartments v. Federation of Pakistan and others
33. W.P. No.31780 of 2012 Messrs Hoover Pharmaceuticals (Pvt.) Ltd. v. The Commissioner Inland Revenue and others
34. W.P. No.31781 of 2012 Messrs Synarome Manufacturing Co. (Pvt.) Ltd. v. The Commissioner Inland Revenue and others
35. W.P. No.31782 of 2012 Messrs Noorani Industries (Pvt.) Ltd. v. The Commissioner Inland Revenue and others
36. W.P. No.31783 of 2012 Messrs Sheikh Riaz Ahmad Chamara Ferosh v. The Commissioner Inland Revenue and others
37. W.P. No.31784 of 2012 Messrs Nabeela Kamal v. The Commissioner Inland Revenue and others
38. W.P. No.31794 of 2012 Messrs Coca Cola Beverages Pakistan Ltd. v. The Federation of Pakistan and others
39. W.P. No.30913 of 2012 Fine Engineering Works (Pvt.)
SR.
NO.WRITE PETITION NO. TITLE OF THE CASE Ltd. v. The Federal Board of Revenue and others
40. W.P. No.31732 of 2012 Messrs Benz Industries Ltd. v. The Commissioner Inland Revenue and others
41. W.P. No.31733 of 2012 Messrs Al-Abid Brothers Rice Mills v. The Commissioner Inland Revenue and others
42. W.P. No.31734 of 2012 Riaz Sizing Industries v. Commissioner Inland Revenue and others
43. W.P. No.31738 of 2012 Messrs Al-Quresh Pet Bottles (Pvt.) Ltd. v. The Federation of Pakistan and others
44. W.P. No.31739 of 2012 Messrs Al-Quresh Board Mills v. The Federation of Pakistan and others
45. W.P. No.31747 of 2012 A.G. Publications (Pvt.) Ltd. v. The Federation of Pakistan and others
46. W.P. No.31748 of 2012 Jamshoro Joint Venture Ltd. v. The Federation of Pakistan and others
47. W.P. No.31749 of 2012 Phoenix Aviation (Pvt.) Ltd. v. The Federation of Pakistan and others
48. W.P. No.31750 of 2012 Pioneer Gas (Pvt.) Ltd. v. The Federation of Pakistan and others
49. W.P. No.31224 of 2012 Messrs Rehmat Nazir Rayon (Pvt.) Ltd. v. Commissioner Inland Revenue and others
50. W.P. No.31218 of 2012 Mian Muhammad Javaid v. Commissioner Inland Revenue and others SR.
NO.WRITE PETITION NO. TITLE OF THE CASE
51. W.P. No.31154 of 2012 Messrs Micronizer (Pvt.) Ltd. v. Federation of Pakistan and others
52. W.P. No.31170 of 2012 Messrs Ferozesons Trust v. Federation of Pakistan and others
53. W.P. No.31156 of 2012 Messrs New Malik Traders v. Federation of Pakistan and others
54. W.P. No.31636 of 2012 MessrsPoplon and Co. (Pvt.) Ltd. v. Federation of Pakistan and others
55. W.P. No.31628 of 2012 MessrsPrime Dyeing Industries v. The Commissioner Inland Revenue and others
56. W.P. No.31630 of 2012 Messrs Qadbross Engineering (Pvt.) Ltd. v. The Commissioner Inland Revenue and others
57. W.P. No.31610 of 2012 Messrs. Watt N Volt v. Commissioner Inland Revenue and others
58. W.P. No.31115 of 2012 Messrs Ibrahim Fibres Ltd. v. The Federation of Pakistan and others
59. W.P. No.31690 of 2012 Messrs Ikram Sheesha Elmonium Markaz v.
Commissioner Inland Revenue and others
60. W.P. No.31155 of 2012 Messrs Pak China Manufacturing (Pvt.) Ltd. v.
Federation of Pakistan and others
61. W.P. No.31756 of 2012 Messrs Infotech (Pvt.) Ltd. v. The Federation of Pakistan and others
62. W.P. No.31879 of 2012 Messrs Kohinoor Sugar Mills Ltd. v. The Federation of Pakistan and others
63. W.P. No.31880 of 2012 Talib Hussain v. The Federation of Pakistan and others SR.
NO.WRITE PETITION NO. TITLE OF THE CASE
64. W.P. No.31881 of 2012 Messrs Gujranwala Electric Power Co. Ltd. V. The Federal Board of Revenue and others
65. W.P. No.31882 of 2012 Messrs Islam Soap Industries (Pvt.) Ltd. V. The Federation of Pakistan and others
66. W.P. No.31895 of 2012 Messrs ICL International (Pvt.) Ltd. V. Federation of Pakistan and others
67. W.P. No.31896 of 2012 Syed Ali Husnain Hamdani v. Federation of Pakistan and others revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.