CBI files FIR against Tamil Nadu firm for cheating I-T dept of Rs 3.42 crore


New Delhi, May 6  The CBI has filed an FIR against a Tamil Nadu-based TDS e-return intermediate authority for allegedly cheating Income Tax department to the tune of over Rs 3.42 crore by claiming fabricated returns, officials said Thursday.

The central agency has booked 42-year old K Panchatcharam, proprietor of Dhiraviam Tax Services, whose firm is an approved e-return intermediate authority offering services of e-filing TDS returns, Income Tax returns, rectification of TDS statements, PAN registration and GST allotment.  The agency has alleged that Panchatcharam devised a format in Microsoft excel software which requires the details of names of DDO, Code No., PAN and DDOs date of birth.  The data is then converted in the winman software to create a FVU file, which is to be uploaded in TIN-FC (Tax Information Network – Facilitation Centre).  Further, rectification for correction of TDS quarterly statements in Form 24Q and 26Q are also done in the office premises of Dhiraviam Tax Services, it alleged.  The Income Tax department had received two complaints on April 3, 2018 claiming that they did not file any Income Tax returns as their incomes were below threshold required for filing it but have received refund cheques from the department.

During the verification, it surfaced that the company was filing large number of E-TDS correction statements without the knowledge of the Tax Deduction and Collection Account Number (TAN) holders, and fraudulent claims of refunds were made/received.  “For this the Permanent Account Numbers (PANs) of various individuals, who actually do not have business activities or receipts, were utilised without the knowledge of such individuals. On receipt of refunds by the said individuals, they were approached by one Muthuraja, for withdrawing and collecting the refunds which were credited into their respective bank accounts,” the FIR alleged.  The Income Tax department found that the names of the individuals whose names appear in the e-TDS correction statements filed by the above TIN facilitation centre, are not in their list of contractors and agents employed by the departments and establishments.  The verification process showed that  246 individuals have incorrect names with regard to the corresponding PANs in the e-TDS 26Q returns.  CBI Spokesperson RC Joshi said during the financial years 2014-15, 2015-16 and 2017-18, the accused had filed e-TDS correction returns on behalf of various TAN holders without their knowledge, by amending the details of payment of contractors and claimed fraudulent tax refunds in the name of various other individuals and got refund amounting to Rs.3.42 crore (approx) and thereby caused loss to the Income Tax Department. Once the refund in return of TDS was credited in the respective individuals bank account, Panchatcharam directed it to be withdrawn for a commission ranging from Rs 5,000 to Rs 10,000, the FIR alleged.

“The parties under whom TDS claim is being made are involved in the schematic refund fraud without the entire cognisance of the issue,” it alleged. PTI ABS ZMN


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