Rs 40 crore I-T refund scam busted in Hyderabad, 8 consultants under scanner
Hyderabad, June 29, 2023
The income tax department has unearthed a Rs 40 crore tax refund scam. Eight tax consultants, many employees of railways and police department and several technology companies in Hyderabad and Vijayawada are now under the scanner of the I-T investigation wing, Hyderabad.
On Wednesday, officials of I-T investigation wing conducted a survey at various locations in Nizampet, LB Nagar and Vanasthalipuram. I-T officials said notices for prosecution will be served on government officials and tech professionals involved. A criminal case will be filed with police station concerned, officials said.
Senior officials said the fraud was only the tip of the iceberg and suspect that the scam could be in larger proportions. The investigation will continue in next few days to identify more number of consultants and employees involved in fraudulent activities, officials said.
Explaining the modus operandi of the alleged scamsters, sources in I-T department said: "The consultants fabricate bogus documents or file returns without proper documentation under sections 80CC and 80DD even though the employees were not eligible. Each consultant had filed approximately 500 to 1,000 such I-T returns."
A senior I-T official said the consultants, either directly or through their agents, approached the employees offering to file their returns for 10% commission on the refund amount. "Some employees were unaware that it was a fraudulent scheme and willingly provided their credentials to receive refunds in their accounts for a commission," he said.
This is not the first instance that such a fraudulent activity has come to light.
In 2017, the I-T department found that 200 software employees had falsely claimed refunds by faking disabilities and chronic illnesses among their family members.
Hyderabad central crime sation conducted an investigation and filed chargesheets against the consultants and employees involved. The charges filed included sections 420 (cheating) and 406 (criminal breach of trust) of IPC against two tax consultants.
[The Times of India]
