Tax consultant faces CBI probe for false Rs 3.4 cr refund claim

The CBI is probing a tax consultant in Ramanathapuram who allegedly filed e-returns without knowledge of the customers and claimed Rs 3.42 crore in refunds for three financial years starting 2015-16.

The accused, Panchatcharam, the proprietor of Dhiraviam Tax Services, is an approved income tax e-return intermediary in Ramanathapuram.

The CBI, Madurai cites Panchatcharam and others including unknown private persons and public servants as accused, based on a complaint from IT Department. The FIR alleged that the accused entered into a conspiracy with unknown others with a dishonest intention to cheat the IT Department.

It further alleged that in pursuance of the conspiracy, during 2014-15, 2015-16 and 2017-18 fiscals, the accused filed e-TDS correction returns on behalf of various tax deduction and collection account number (TAN) holders without their knowledge, by amending the details of payment of contractors and claimed fraudulent tax refunds and got refund amounting to Rs 3.42 crore, thereby causing loss to the IT Department, said a CBI release.

On verification of e-TDS return for the above financial years, PANs in the ITD (Income Tax Department) database and their respective returns of income, it was noticed that 246 individuals have incorrect names about the corresponding PANs in the e-TDS return.

Upon verification, it was found that all the individuals, for whom the TDS at the rate of 10 per cent was deducted, were found to be deliberate entries without any actual income received from the deductor.

For this, the PAN of various individuals, who do not have business activities or receipts, were utilised without their knowledge. 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.