High-handedness and maladministration: president orders action against FBR officials

President Tuesday directed Federal Board of Revenue (FBR) to take strict disciplinary action against the Inland Revenue officials found guilty of highhandeness and maladministration, which resulted in illegal arrest of a person on the basis of FBR's unlawful ex-partie assessment order without proper investigation and procedure.
In this regard, President Secretariat rejected the representation of the FBR against the order of the FTO. President order in the case specifically declared that the FBR has failed to make out a convincing case for intervention with the impugned order against the person (complainant).
The President's order against the FBR clearly reflects that how wrong tax assessments by IR officials could lead the citizens to jail.
According to the President, feeling aggrieved of a provisional assessment order passed under Section 122C of Income Tax Ordinance 2001 for tax years 2009 to 2011 and further arrest in the course of recovery proceedings, complainant approached F.T.O praying for setting aside of the said order and at the same time praying that a direction be issued for supplying certified copies of the said Order and further to issue direction for his release from jail. Agency (Revenue Division) replied that provisional assessment order was passed on June 19, 2012 for the said tax years and demand notice was served upon complainant and upon his failure to pay, the tax proceedings were commenced and he was detained in civil prison. FBR/Agency further intimated F.T.O that complainant had filed W.P No.1660/2013 in the Lahore High Court, Rawalpindi Bench on 11.07.2013 and pursuant to verbal orders passed on 12.07.2013 and further an agreement with maternal uncle of complainant as also his father, the defaulter was released after payment of partial tax demand and undertaking to pay the balance in instalments. FTO conducted hearing and proceeded to discuss the details and merits of the case including question of facts. FTO also observed that complainant was released under directions of the High Court. It was found that arbitrary and unlawful ex-partie assessment order was passed without proper investigation and procedure and illegal arrest was also unjust and oppressive and tantamount to maladministration. Following recommendations were made by FTO that the FBR to direct the Commissioner concerned to review the unlawful order under Section 122A of the Ordinance and issue refund/compensation to the Complainants' uncle recovered forcibly and unlawfully. The FBR will take action under Government Servants (E&D) Rules, 1973 against the OIR, for passing an unlawful and biased assessment order in unprofessional manner and with vindictive attitude in the instant case.
FTO order said that the FBR to initiate action against the officials including the Inspector who were involved in unlawful arrest and detention of the Complainant in jail without ascertaining true facts and without following proper procedure. FTO further directed that the official(s) concerned be made to pay for the sufferings of the Complainant and the expenditure he had to incur in filing suit and writ petition due to their arbitrary and unlawful treatment;
FTO order added that the FBR to ensure detailed investigation regarding the ownership of bank accounts and business activities of Khawaja Amjad Ali through a team comprising an officer of Directorate (I&I) and a competent officer of the FBR for a transparent and impartial outcome and further action as per provisions of law.
President order said that the representation has been filed by FBR questioning jurisdiction of F.T.O. Notably, the Agency had never raised this objection at the trial stage. On merits, it is absolutely silent as to what prevented the Inland Revenue Officer from undertaking an investigation into the financial worth of the complainant and alleged operation of benami accounts by Khawaja Amjad Ali, ex-employer of the complainant, despite their being reasonable prima fade/circumstantial evidence available before undertaking drastic step of the arrest of the complainant. Besides, it does not controvert the FTO's observation with regard to non-observance of procedure laid down in Sections 183-186 of the ITO 2001 for arresting a tax defaulter.
The Agency has, thus, failed to make out a convincing case for intervention with the impugned order, President observed. Accordingly, the President has rejected the FBR's representation with the direction that strict disciplinary action should be taken against the officials found guilty of highhandeness and maladministration. Compliance now to be reported to the FTO's Secretariat within 30 days of the receipt of copy of the order, President order added.