2015 PLP 2401 (PTD)

14. The Dept'l suggestion that Dept'l monitoring of tax withholding data transmitted periodically by withholding agents could have led to compulsory registration of persons earning taxable income in some cases and resultant issuance of NTN to them is of course correct. However, when this happens the person who has been so registered becomes aware that he has been compulsorily registered as he invariably receives a copy of the NTN certificate by post from PRAL. In the case of the complainant he never received any such intimation from PRAL directly and there is no credible evidence with PRAL that he did. That is why he started making enquiries about issuance of NTN on his own when he took up employment with S.A.R.C.O. (Pvt.) Ltd. on 11th February, 2014 after leaving J.S. Bank on 30-1-2009. It is to be noted that the complainant did not receive any NTN from FBR/PRAL when he was employed in J.S. Bank at Lahore.

15. The so called NTN application that the Deptt. says the complainant filed on Rs.20 stamp paper does not inspire any confidence at all. The most glaring defect in this "application" is the fact that the stamp paper bears no particulars of the stamp vendor without which the stamp paper is just a sheet of colored paper and has no value as a legal document. Furthermore, the "application" bears no Diary number. Additionally, the signatures affixed on the "application" have been rejected by the handwriting expert as having any similarity to the complainant's authorized signature and the Deptt. has not countered that firm finding with any credible rebuttal except to state that this was forgery issue.

16. So far as complainant's nexus with the so called Messrs Al-Khawan Enterprises, Faisalabad is concerned the complainant has categorically denied any connection whatsoever and has filed an affidavit to support the denial. On the other hand the Deptt. has not filed a shred of evidence of show that the complainant had any interaction at all with Messrs Al-Khawan Enterprises, Faisalabad. Mere assertion by the Deptt., unsupported by any corroborating evidence whatsoever, inspires no confidence in the Dept'l stance.

17. When the complainant made informal inquiry from the Deptt. about obtaining an NTN, he was told that NTN had already been assigned to him. The Deptt. states that the NTN was issued in consequence to application filed by complainant "on Rs.20 stamp paper attested by Oath Commissioner." However, this so called "explanation" is not plausible as discussed supra. This is for the obvious reason that when the complainant came to know that he already had an NTN in his name although he had never applied for one, it would be absurd for him to "apply" for another NTN on the ground that "he had not received the NTN that he had applied for earlier."

18. Letter dated 27-1-2015 by Mr. Hassan Subhani, Incharge NTN Cell, Lahore to The Senior Manager Operation/Chief Manager Operation (PRAL), IR Operation, Islamabad with copy endorsed to TC-I, FBR consequent to notice dated 20-1-2015, issued to PRAL by the regional office of the FTO, Lahore, is very revealing and extract there-from is reproduced below:-- "Subject: COMPLAINT AGAINST ISSUANCE OF ILLEGAL NTN ON FAKE DOCUMENTS-MISUSE OF CNIC OF INNOCENT CITIZENS OF PAKISTAN Refer to subject cited above; We have received FTO Order C.No.66/LHR/2015 dated 20-1-2015 by FTO advisor and letter C.No.4(66)/To-I/2015 dated 23-1-2015 by the Second Secretary (TO-I) FBR Islamabad. In this regard, applicant (Ali Mansoor Khan) has filed first complaint on dated 24-3-2014 and second complaint filed on 26-5-2014 to PRAL head office through incharge NTN cell Lahore. But no such action taken against these complaints, now once again he submitted complaint on dated 14-11-2014 to PRAL head office through Incharge NTN Lahore. Keeping in view the attached complaint, matter was discussed in detail with CMO-PRAL then as per ordered by CMO-PRAL initial inquiry conduct against fake documents. After detail scrutiny from system it was found that NTN-3518722-7 having CNIC-3520288870001 of Messrs Al-Khawan Enterprises processed and delivered from RTO Faisalabad. For fact collection direction was issued to Sr. DBA Faisalabad by MO PRAL (IR-Central) for early submission of relevant documents to him. In the above said inquiry from e-mails and Telephonic conversation, it was found that this NTN application received. and processed from Faisalabad NTN cell by PRAL DEO Zahid Sarfaraz and Imran Hussain. It is also inquired about current status of DEO, it was found that both persons terminated from services on issuance of such matters. Where NTN of Messrs Al-Khawan Enterprises was processed and Approved by NTN cell Head Office Islamabad. (E-Registration process applied history attached for information). The documents were forwarded along with applicant complaint to CMO PRAL (as per telephonic ordered) for further decision and security, FTO complaint is also forwarded for decision and reply."

19. The above letter throws much light on the inner working of PRAL but unfortunately when approached by this office for a response in the matter, PRAL unjustifiably, summarily brushed it aside. It is not understandable why the Deptt. has acted in this manner when Mr. Hassan Subhani was very much in the PRAL loop in RTO Lahore that had territorial jurisdiction over the complainant as he was based in that city. His indication that two PRAL employees, Messrs Zahid Sarfraz and Imran Hussain, dismissed for their involvement in corrupt practices, were also involved in submitting a fraudulent application for a change in complainant's NTN particulars cannot be brushed aside lightly. His letter to higher authorities in PRAL is self explanatory and clearly shows that he knows what he is talking about. Submission of a subsequent clarificatory statement by PRAL denying involvement of Mr. Zahid Sarfaraz and Imran Hussain in complainant's NTN issue does not 'clarify' anything especially when a demand for their appearance before the FTO to personally 'clarify' various matters raised in the complaint has been abruptly turned down by PRAL with the terse remark that following their dismissal FBR/PRAL had no further contact with them. It is noteworthy that as per activity report submitted by FBR/PRAL, one of these two individuals, Mr. Zahid Sarfaraz, was closely involved in the processing and issuance of NTN to the complainant. In fact, Mr. Zahid Sarfaraz is clearly involved in every step leading to issuance of complainant's unsolicited NTN and he himself "received" the NTN certificate when the same was finally "issued." It is equally noteworthy that perusal of documents annexed with FBR's letter C. No. 4(66)/ TP-I/2015 dated 30-1-2015 reveals that when the fake application for a change in complainant's NTN particulars was approved on 25-8-2011, an Electricity bill for the month of October 2010 was attached with the bogus application as required supporting documentation. Notwithstanding an objection raised by an FBR functionary that the electricity bill was outdated, changes in the NTN certificate were still approved by the concerned PRAL officials in the absence of a valid electricity bill and PRAL has no plausible explanation for this lapse.

20. PRAL has suffered adverse comment from the FTO earlier as well. The fact remains that despite huge investment in PRAL infrastructure, it remains highly deficient in implementing protocols ostensibly set up to efficiently process and dispose of taxpayers queries relating to various issues and problems that they routinely face in their dealings with the Deptt. The present complainant too has obviously suffered at PRAL's hands but the organization obstaintely refuses to acknowledge any shortcoming or wrongdoing on its part. As a result, it refuses to take corrective action.

21. Again, the alleged submissions of a seriously flawed sales tax STRN application by complainant at Lahore after allegedly filing a flawed NTN application at Faisalabad, is not credible to say the least. From the ambient circumstances in this case, it appears that the real objective of some elements in PRAL was to obtain an STRN in complainant's name. Had it actually materialized, the STRN would have been misused to the detriment of the complainant. FINDINGS.

22. The circumstances and highly suspect sequence of events discussed supra raise many questions and strongly suggest foul play by PRAL functionaries. There is need that the Deptt. accepts these happenings and takes concrete steps to ensure that others are spared such harassment and the fraud that is being perpetrated in the Deptt. due to documents contrived fraudulently comes to an end. Recommendations:--

23. FBR to

(i) conduct enquiry to determine how, and by whom the defective NTN certificate was issued in complainant's name; (ii) devise a fool proof SOP with the consultation of National Response Centre for Cyber Crimes (NR3C) wing of FIA to stop the use of fraudulently prepared documents in PRAL; (iii) devise a policy to validate all NTNs on the PRAL data base through a system of biomatric verification; and (iv) report compliance within 60 days.

24. A copy of the above Findings/Recommendations, along with copy of complaint and all documents presented/obtained during investigation be forwarded to ',IV for initiating criminal investigation into the forgery of complainant's 5ignatures on the so called stamp paper application for NTN and the change in NTN particulars application. KMZ/87/FTO Order accordingly.