Case Law Details
CBI Vs. Devendra Chaturvedi (Special Court for CBI at Greater Bombay)
In nutshell, it is the allegation against accused that they conspired to cheat the Income Tax Department and in collusion with each other during the relevant period accused No.1 prepared income tax returns with the assistance of accused No.2 in the name of accused No.3, 6 to 8 and one Shri Haresh Dhameja and submitted to the Income Tax office in Ward No.12(5), Income Tax Office, Mumbai. Accused No.4 prepared forged TDS certificate and he is one of the beneficiary of crime proceeds. Further, the basic claim of income tax refunds was based on TDS Certificate alleged to be issued by deductor concerned firms. In the present case, the almost all TDS certificates were alleged to be issued in the name of transport companies. It is alleged that the accused No.3, 5 to 8 shown as a fictitious proprietor of said transport firms in whose favour TDS Certificates were came to be issued. Thus, accused No.3, 5 to 8 claimed Income tax refunds, which were credited in their bank accounts. In furtherance of said conspiracy, the bank account in the name of fictitious person one Shri Haresh Dhameja is opened to credit the income tax refund.+
On perusal of the ingredients of offence punishable under Section 420, the prosecution has proved that the Income Tax Department complainant parted with his property i.e. refund amount acting on a representation, which was false to the knowledge of accused. The accused had dishonest intention from the outset that the refund amount in the hands of Income Tax office must have passed on them. Thus, there is a satisfactory evidence on record to prove that accused No.1 to 4 and 6 to 8 cheated Income Tax Department by dishonestly inducing the said department to deliver the refund orders to the tune of Rs.3,00,000/.
Furthermore, the evidence on record clear cut indicates that the TDS certificates attached to the ITR are forged by the accused with dishonest intention to cheat the Income Tax Department. The evidence further indicates that accused No.1, 2 and 4 did the act of forgery in respect of TDS Certificates as well as Income Statement, Balance Sheet attached to the ITR Forms. The Income Tax Returns were prepared and submitted in the name of accused No.3, 6 to 8 and Haresh Dhameja. The income tax refund amount is credited in the account of accused. TDS Certificates and documents attached to Income Tax Returns are forged one, used for the purpose of cheating and used those documents as a genuine, which they knew that at the time when used by them to be a forged documents. Further forged TDS certificates and balance sheets purported to be a valuable security, so accused committed forgery of valuable security. Thus, ingredients to constitute offence punishable under Section 120B of IPC, 420, 467, 468, 471 r/w 120B of IPC are made out against accused No.1 to 4 and 6 to 8.
Thus, in the light of above discussion the evidence led on behalf of prosecution is consistent and sufficient to prove the ingredients of offence punishable under Section 120B of IPC, 420, 467, 498 and 471 r/w 120B of IPC against accused No.1 to 4 and 6 to 8. So they are liable to be convicted for the said offences. The prosecution failed to prove the guilt of the accused No.9, so he is liable to be acquitted. At this stage, it is required to take pause and proposed to give hearing against accused on the point of sentence.
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Last week, one of the all time biggest refund racketeers of the country, masqerading as an ITP and also a CA, who operates his refund racket for decades, was finally convicted and sentenced to 14 years RI with a hefty fine.