CA AND 404 OTHER PEOPLE BOOKED FOR FRAUDULENT RS 16.64 CORE TAX REFUND SCAM !

CA AND 404 OTHER PEOPLE BOOKED FOR FRAUDULENT RS 16.64 CORE TAX REFUND SCAM !

The Tax Deduction Account Numbers (TANs) and Accounts Office Identification Numbers (AINs) of several government departments were utilised in a scam involving income tax refund claims totaling Rs 16.64 crore. Two different FIRs have been submitted to the Crime Branch in Srinagar against one chartered accountant and 404 other people as a result.

Official sources claim that information regarding Jammu and Kashmir was provided to the Commissioner of Income Tax (TDS) Chandigarh in January of last year after a thorough investigation by the Joint Commissioner of Income Tax's office in Manachira Kozhikode (Kerala) into bogus refund claims made by some dishonest people by manipulating inactive AINs and creating fraudulent TAN.

The main con artist in Jammu and Kashmir was the chartered accountant Imran Dara. He filed bogus payments and TDS on many TANs using three false AINs and one dormant AIN of four government departments. The Income Tax Officer (TDS) Srinagar then undertook a more thorough investigation by taking down many people's statements in accordance with Section 131 of the Income Tax Act, 1961.

Later, he extended credit to 1208 PANs owned by his known people. Out of them, 404 PAN holders submitted income tax returns, got TDS refunds transferred in their accounts, and then withdrew the money.

Imran Dara used 4 AINs and 9 TANs to carry out the scam, according to the inquiry. The AINs came from the Gurez Bandipora, the Principal of the Government Higher Secondary School in Kupwara, the Sub-Divisional Magistrate Office in Dawar, the Executive Engineer in Sumbal, and the Executive Engineer R&B in Right River Circular Road in Srinagar.

The Executive Engineer, R&B Right River Circular Road Division Srinagar, Executive Engineer Division Sumbal, Principal of the Government Girls Higher Secondary School in Kupwara, SDM office in Dewar, SDM office in Gurez, Headmaster of the Government Higher Secondary School in Budgam, Headmaster of the Government High School in Bulginder Bandipora, Headmaster of the Government Secondary School in Kilshay Gurez, and Headmaster of the High School were all given TANs that were used

Investigations revealed that school teachers made up the bulk of TAN holders who, despite having TDS occasionally withheld from their salary, failed to file any TDS returns. DDOs were also ignorant of the fact that phoney returns were being filed in their names utilising their TANs to submit bogus refund claims.

The TDS credit was likened to the TAN of M/s ICDS and Co (Proprietary company) in the phoney Form 24G filed by the Sub-Divisional Magistrate office under AIN-11004471 for the Financial Year 2016–17, and it was finally credited into Imran Amir Dara's PAN, the proprietor of M/s ICDS and Co. This proves that Imran Amir Dara is not only the mastermind of the entire hoax, but also a direct victim of it, according to insiders.

The true rate for Section 194C tax deductions is only 2%, but in fraudulent TDS files, other rates—10% and 20%—have been used for such payments, showing that the con artists TAN holders were fiddling with the rates on the higher side to get the biggest refunds.

"From 2018-19 to 2021-2022, a period of four years, a total of Rs 88 crore was reportedly associated with bogus reimbursements. During the extensive investigation, 1208 PANs were reportedly discovered to be utilised to process phoney refunds. Of the 1208 distinct PANs, only 410 were used to file ITRs, and of those 410 ITRs, 404 instances totaling Rs 16.64 crore obtained refunds for the assessment years 2018–19 and 2020–21.

404 PAN holders and CA Imran Amin Dara are the last beneficiaries, who received the return amount, according to sources.

Mr. Akash Kumar Meena, Income Tax Officer (Technical), Srinagar, has filed the FIRs with the Crime Branch of the Jammu & Kashmir Police at the direction of Principal Commissioner of Income Tax Srinagar M P Singh.

A Special Investigation Team (SIT) has been established by the Special Director General of Police (Crime) to conduct additional research on the matter.

Sources :- https://thekashmirwalla.com/it-dept-files-firs-against-404-employees-ca-in-bogus-refund-cases/

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