2 held for income tax refund fraud by Delhi Police's EOW

The Delhi Police's Economic Offences Wing on Sunday said that they have arrested two people involved in income tax refund fraud.

The accused were identified as Nitin Mehta and Nikunj Dudeja.

Police said that an FIR was lodged against them, based on a complaint filed by Income Tax Department official Mohit Garg.

"It was alleged that during scrutiny process, Income Tax Department observed that some refunds had been issued to some fake assessees in suspicious manner and without receipt of any refund application u/s 154 I.T. Act. The refund amount was 3.36 crore disbursed to the 20 assessees for the financial years 2012-13, 2013-14, and 2014-15, respectively.

"Moreover, TDS reflected in their Form 26AS showed that the TDS was deducted by struck off companies whereas their bank accounts did not reflect any payments received for any assignment," an EOW official said.

Police said that as per Delhi Income tax office, none of the assessees were traceable at the address furnished in the PAN cards, which were also found to be obtained on fake documents.

Seeing the gravity of the matter, police lodged an FIR of cheating and forgery and started the investigation.

"The investigation revealed that out of 20 bank accounts of fake assessees, 19 bank accounts were opened on the recommendation of VBMCS Sales Pvt Ltd and the assessees were shown as employees of the company. The accused Nitin Mehta and Nikunj Dudeja were shown as the directors of VBMCS Sales Pvt. Ltd," the official said.

During investigation, the complainant was examined and relevant documents were seized. Relevant bank statements were analysed which revealed that a huge amount was collected in fake accounts and later withdrawn and thus, fraud on public money committed.

"Both the accused were finally arrested. They have been sent to 14 days judicial custody," said the official.(IANS/NJ)