Tax refund scam: IT saves Rs 8 cr

 

Mumbai,

Sun, Feb 21 01:30 PM

The Income Tax department has managed

to prevent at least Rs 8 crore from getting into the hands

of those involved in a tax refund fraud. The department has

identified and frozen some suspect bank accounts from 

which money was likely to be withdrawn. 

 

The scamsters had transferred tax refunds into more

than 20 different bank accounts.

They used 30 to 40 banking channels [transferring money from 

one account to another before withdrawing it] so that they 

could avoid getting caught. However, a month after the fraud 

was noticed and 10 days after the Central Bureau of Investigation

(CBI) registered a first information report (FIR), the culprits are

yet to be caught. Chief Commissioner of Income Tax, 

Mumbai, R. K. Singh confirmed that the department has 

lodged an FIR but refused to comment further. 

The fraud, which took place between December 14 and 20, 

was discovered on January 12.

 

The culprits had processed over 150 returns

and claimed the refund. While many returns were

in the name of poor people, who do not even fall in tax

bracket, some were in the names of persons who do

not exist. The returns were processed using the department's 

electronic clearing system, which could be accessed only

through passwords of assessing officers, one of which the

culprits managed to access. 

Despite identifying a chartered accountant (CA),

a vice-president of a co-operative bank and an advocate

among the accused, the I-T and CBI have been unable to

recover the sum-which amounts to at least Rs 6 crore-that the 

culprits had withdrawn. 

The I-T had also raided the CA,

while the other two were not traceable.

After the incident, the department issued safety guidelines
to its staff. Employees were asked to change their passwords
every week and to deter from sharing them with anybody.