In a rare instance, a group of four—led by a chartered accountant (CA)—succeeded in extracting from the income tax (I-T) department fraudulent tax refunds, amounting to over Rs 3 crore, in the names of 30 people.The I-T officials on Tuesday managed to locate one of the four, Nitin Dalvi, and recorded his statement. The other three, CA Dilip Vyas and his accomplices Sandeep Roy and Mohan Gadge, are still at large. The department is in the process of lodging a police complaint against the four and is probing the involvement of I-T officials in the scam.
The four floated five firms mostly in Dahisar, Nallasopara and Virar. They identified over 30 people, all PAN card holders, reportedly running small businesses but with no taxable income. These people mostly resided in chawls and had never filed their tax returns.
The quartet approached these people and offered them commission for extending help in the fraud. “Some of them were aware while we are in the process of ascertaining what made the others to join hands with the four,” an I-T official said. The quartet gave
them Rs 1,000 each for opening bank accounts and collected signed blank cheques from them.
The four filed tax returns of these people using the PAN card details they had furnished and claimed refund of tax deducted at source (TDS). “Refunds were issued though there was no proper verification of TDS certificates. There are instructions that any claim above Rs 25,000 be verified. However, claims of over Rs 1 lakh were cleared without verification, ” an official said.
Returns were filed and processed by the central circle of the I-T department which was assigned the job of assessment of search and seizure cases. After the refunds were issued, the tax files of these 30 people were transferred to their respective assessment units. The tax refunds were credited into the bank accounts of the 30. The four, who already had in their possession signed blank cheques of these 30 people, withdrew the amount, sources said.
A deputy commissioner smelt a rat when huge refunds were granted from his unit though he was into assessment of search and seizure cases. He brought the matter to the notice of his seniors who took it up with E T Luckose, director of income tax (investigation) . “The investigations are on and it is too early to assess the ramifications, ” a senior IT official said.
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