The Central Bureau of Investigation has arrested the Director (Investigation); Addl. Director (Investigation); Assistant Commissioner & Inspector, all of Income Tax Department and the MD of the Lucknow /Delhi-based private company & the Chartered Accountant of Kanpur in a bribery case.

A case was registered by CBI U/s 120-B IPC, 7, 12 13 (2) r/w 13 (i) (d) of PC Act, 1988 against several public servants of Income Tax Department and the MD, the CMD & other functionaries of Lucknow / Delhi-based private Company engaged in the business of real estate & construction, including large scale residential projects in various cities in North India.

It was alleged that the Investigation Wing of income Tax Department at Kanpur conducted survey on the allegation of IT evasion by the said private group of companies. The senior level officials of the private company along with a Chartered Accountant based in Kanpur contacted several officials of IT Department to settle their IT evasion matter by illegal means and allegedly paid huge amount of bribe to the said officials of Income Tax. The IT officials, during the locker operation of the private company, also allowed the MD & his family to illegally take away major portion of huge cash and gold stored in the said locker.

It was also alleged that a large amount of bribe was paid to the officials of Income Tax Department, including the Additional Director (Investigation) and the Director (Investigation) in return for favours shown to the private persons and to settle the IT evasion matter. The Chartered Accountant of Kanpur was working as a middle-man between the IT officials and the officials of the private company.

CBI conducted searches at the house of the Director (Investigation) at Delhi and recovered Rs.30 lakh which was paid as bribe by the MD of the private company to him. Thereafter, searches were conducted at various places in Delhi; Ghaziabad; NOIDA; Lucknow & Kanpur which led to recovery of huge amount of cash, valuables and incriminating documents.

The arrested accused were produced today before the Special Judge, Patiala House Courts, New Delhi and were remanded to seven days CBI custody.

Further investigation is in progress.

CBI Press Release
New Delhi , 04.06.2012

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0 responses to “CBI Arrests 4 Income Tax officers, Company MD & CA in bribery case”

  1. Anonymous says:

    CA course has reached it’s saturation point. And this has happened because of their superiority complex. They have dig the whole for themselves and now they have got into the pit and are unable to come out.
    Even CMA’s and CS professionals are conducting various audits may it be compliance audit, cost audit, vat audit or excise audit. But in the last 50 years I have never heard a CMA or CS to do a fraud. Why only CAs are doing fraud. It’s because they think they are superior to other professionals and have the birth-right to do fraud. Arrogance only leads to downfall.

  2. Mukund says:

    And FYI the syllabus of 3 sister institutes are more and less similar and also the evaluation process is very stringent in CMA and CS Institutes.Many CAs refuses to accept this trusth unless one is having multiple qualification.So the argument of law and accounts background of CA equips them for financial and tax audit is exaggerated.Why there is so much legislative favour towards ICAI which is not allowed to others.Audit and Financial attestation is not any rocket science but compulsorily required in day to day business and an individual with right credential and moderate IQ can carry out the same with equal competency.This is not 1970 when the audit and accounts profession was evolving and there was need for grooming and shaping in protection shield.Today In 2012 this area should be allowed to others through suitable changes and proper checks & balances in legislature.A lot of mediums available now through which a professional updates his knowledge base and keep abreast with the changes.So attending seminars/workshops follows automatically once opportunity is given.A legislative power morphs a zero into hero which is exactly happens with CA profession.Pls introspect.

  3. Mukund says:

    With due respect to your views  Podderji,I never mentioned corrupt to all members of CA fraternity but invariably where ever and whenever there there is some accounting embezzlement and financial scam either in corporate or in capital market the link of CAs are immediately established.As far as capability for Financial audit or tax audit is concerned you will definitely agree that Cost audit is much more complex than any other questioning the capability of CMAs to carry out such audits is highly injustice without giving them a chance to do so.And qualifying CMA exam is not that easy which CA fraternity never accept.Last but not the least the Arrogance of CAs and to that matter a CA student emanates from that exclusivity they enjoy which i have mentioned earlier and nothing else.

  4. CA. Subhash Chandra Podder ,FCA. says:

    Noted the matter mentioned in the subject line, It is true that when the cases are coming to the notice of the authority they will definitely try to take action as per the Laws of the country, including the Institute of Chartered Accountants of India and Income tax department . Bribery cases are amongst the assesses, Income tax officials , including authorized representatives as like of Chartered Accountants, lawyers and others may it be he or she is a CMA, and CS or others .Could you say that if the whole matter is entrusted to those CMA, Or CS , bribery cases will be abolished from the country. No Not at all . definitely chartered Accountants are in better position to prepare the Tax returns as they know the Accounting delicacy of the assesses. does not mean all chartered Accountants are doing the misdeed as said by MR Mukund. Can you say All CMA and CS are most honest as like as MR. Mukund. Not At all.
    during my long carrier as chartered Accountant 1964-65 1969 ( as an Article clerk ) 1970 to till date ( post qualified ) I am in the continuous profession I never offer any bribe for any client. like wise there are many number of Chartered Accountants are doing the profession honestly with integrity and dignity. Where the Tax returns are piled u p ( done by CAS ) are the mater of Income tax Departments. It should not be looked by any professional. Do your duty honestly then suggest to follow you .Chartered Accountants ( ob course if they have good motive ) are the best to prepare tax returns with their accounts and laws back grounds besides there are so many seminar, conferences ,workshops etc. in this regards ( Tax returns , Tax audit, finalization of financial statements etc. )
    CA. subhash Chandra Podder , FCA of 1970

  5. CMA Arif Farooqui says:

    Totally agreed with Mukund. Hope Government will do the needful in DTC.

  6. Mukund says:

    Now ICAI will announce of stern action against its own members and demand more power to be entrusted upon it so as such acts can be prevented.But the real reason repeting of financial crime time and again is not the lack of power but excess statutory and legislative powers in conducting and certifying financial statements given to those members and exclusivity enjoyed by ICAI.Visit to any Income Tax office you will observe piles of tax return files from Audit Firms on the desk of AO.and Why a corner office at Aayakar Bhavan in Mumbai is exclusively and permanently reserved for WIRC,ICAI.India Govt please wake for God sake and dismantle the exclusivity and nexus by allowing other professionals in conducting such statutory audits.Till the time these guys feel the hit from others they will always go astray.The argument only CAs has the appropriate training and back ground for financial audit and tax audit hence the exclusivity will remain a myth till other capable professional like CMA and CS are allowed to do the same.

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