CBI ARRESTS A JOINT COMMISSIONER OF INCOME TAX AND THREE OTHERS INCLUDING A CHARTERED ACCOUNTANT IN A BRIBERY CASE

The Central Bureau of Investigation has arrested a Joint Commissioner of Income Tax & an Income Tax Officer,Range-53, Income Tax Department, Kolkata and a Chartered Accountant & his Assistant in an alleged bribery case.

CBI had registered a case against the Joint Commissioner of Income Tax Deepak J Mehta and ITO P N Srivastava on the complaint of the Owner of a firm engaged in business of fishery based at South 24 Parganas (West Bengal). It was alleged that both the public servants had demanded illegal gratification of Rs.25 lakhs from the Complainant for providing relief to his firm in avoiding penalty and additional tax liability.

CBI laid a trap and caught the Chartered Accountant  Samarendra Nath Ghosh & his Assistant red handed in the office of the Complainant while allegedly accepting an illegal gratification of Rs. Three Lakhs as an installment of the demanded bribe from the Complainant, on behalf of the JCIT and ITO. The JCIT and the ITO were also arrested.

Searches have been conducted in the office & residential premises of the accused persons at Kolkata, Mumbai and Bihar. A cash of Rs.3.5 Lakhs, documents pertaining to three immovable properties and 14 Bank accounts etc have been recovered in the house of the Joint Commissioner of Income Tax at Mumbai. The documents are being scrutinized.

The arrested accused were produced before the Court of Chief Judicial Magistrate, Alipore, Kolkata and were remanded to Judicial custody.

Further investigation is continuing.

Source- CBI Press Release with inputs from PTI
New Delhi, 30.06.2014

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0 responses to “Kolkata CBI arrests CA, JCIT and ITO in 25 Lakh Bribery Case”

  1. s sudarshana says:

    The observation of MVSN Sharma is most appropriate and the judgement/decision of any litigation takes tooo longgg time! Time is money to anybody and the ‘justice delayed is justice denied’. Even after knowing the bribe/demand is not justified at all clent/assessee prefers to pay and close the case more often than not.
    The judicial/quasi-judicial system needs thorough churning and major reforms aimed at dispensing justice/decision in a quick time frame. Professionals need to be professional and sensitive to the need of the litigent and natural justice.

  2. M V S N SHARMA says:

    Corruption is a vicious circle.

    Most of the business organizations prefer to pay bribe to a corrupt officer to close an issue than to fight it out legally, as legal process takes an unduly long time.In addition to the time involved, the legal costs are much more than the bribe that will have to be paid to close an issue. To handle these issues, the consultant fee will be an additional burden and the organization needs to use their employee time to attend these cases.

    Organizations make their own cost-benefit analysis on these lines and more often than not bend towards making an illegal payment than indulge in long drawn legal battle. In order to make up the illegal payment, organization in turn resorts to malpractice in business.

    To root out the malady, the first step should be to make the laws more simple & clear. Legal jargon is sometimes the reason for giving more than one option of interpretation. Language twist results in long drawn legal processes. When the scope of interpretation in different ways is not available, people of the country will not have any other option but to abide by the law. This wont give any chance to the officer dealing with these issues to demand a bribe. When no bribe is required to be paid most of the organizations comply with the laws of the land and wont resort to malpractices.

    M V S N Sharma

  3. CA Deepak Soni says:

    It is mere hard luck of the the I T officers that they have been caught otherwise the corruption is prevailing and that too openly in each and every inch of the Income Tax Dept.The officers must have tortured the poor assessee beyond a limit and would have demanded the money which must have been disproportionately high.They also happened to have fallen in the hands of tough and brave assessee who has shown the courage to get the greedy officers trapped.We wish that he shall not be tortured by the colleagues of the officers because the I T proceedings are perpetual and there is always a strong bonding between the corrupt and unethical officers.The CAs are unfortunately getting now more and more involved in these types of practises instead of sharpening their professional skill because such practises bring quick fortunate without any hard work.Thousands of the CAs are easily available in the market and therefore a skilled CA is not in a position to command the reasonable fees and also the assessee do not want the litigation would wish the matter to be finalised without any hassles even after paying the bribe.

  4. s sudarshana says:

    I fully concur with the observation of CA Sandeep Kanoi that handful of disgruntled persons actions should not be construed as the profession itself is bad. There are good, bad and the worst everywhere and in all fields. Apart from sensationalising the misconduct of a few, proper appreciation of those who could stand firm against corrupt practices is also required.

  5. MANDEEP SINGH says:

    To avoid corruption under income tax suits need to brought under judiciary instead of quasi-judicial authorities. If income tax cases are brought under judicial courts then definitely widen genuine tax base.
    Income tax officer’s role should be same as like police in criminal cases.

  6. s sudarshana says:

    Rat race to become rich overnight, integrity at its lowest level, least importance for the truth/fact to prevail in judiciary when compared to ‘proof’, not able to bring the cases to logical conclusion have polluted the system, almost beyond repair.
    If we look back to 60 years (40 years of our experiance and 20 years of what we heard from our elders who are all resting in peace) we can make interesting observation, which is a must for finding solution in the future.
    Stage 1: All were honest with few with criminal minds only resorting to cheating.
    Stage 2: Most were honest with few though good and not criminals, trying to make extra buck by ‘expediting’ the work that they are supposed to do at a ‘price’.
    Stage 3: Many started to make extra buck by fixing the price for ‘doing quick’ and overlooking lacunae in their claims/papers. All along with a respect to those who are honest and perfect. There was a time when even currput ones ‘recognising’ and ‘respecting’ the right doers. This was a time when the un-fair practices were more at the lower levels than at higher levels. This brought in fear for law and the persons with integrity were not only well protected, respected and admired (even by those who are not of highest level of integrity.
    Stage 4: The evolution (devolution to be accurate) continued. Here one has to pay for any exercise of ‘discretionary powers’ to ‘overlook the inadequecies’ ‘circumvent the rules/regulations’ and the ill gotten money was not for one but for many at different levels. The silver lining was the nonest and the wise were protected even by dis-honest and un-wise at different levels.
    Stage 5: The evolution to this level was fast! One has to pay for any work to be done, though different price, depending upon short-comings. Absolute protection to the corrupt from equals, from below and from above. The degradation is such, any honest person will be fixed unless he will give a deaf ear to the happenings around! Anybody trying to be wise to disturb the corrupt will be dealt severely.

    The solution doesnot lie in arresting the culprits, raids, punishing (on paper only) which will end up with appeal to next level/s which has no end. The reverse process should start gradually as the deterioration occured. (summarised above).
    It is not uncommon to see govt spending huge sums to recover paltry sum and end up by loosing the case!
    It is needless to say the priority should shift from ‘defending the client at any cost’ to ‘ensuring the prevalence of truth and bringing person to justice’ not only by the prosecution but by the practiceners of Law and defending the accused. They should concentrate on quantum of punishment than to prove the case is false by hook or crook.
    EASY SAID THAN DONE. BUT ONE SHOULD HAVE HOPE FOR THE BEST AND IN FUTURE.
    Proper diagnosis is ‘half the battle’ they say.

  7. RiddhiSiddhi says:

    CBI ARRESTS A JOINT COMMISSIONER OF INCOME TAX AND THREE OTHERS INCLUDING A CHARTERED ACCOUNTANT IN A BRIBERY CASE:

    Its shame on an Accounting Profession on Accountants Day today..

    • CA Sandeep Kanoi says:

      Why Shame on Accounting profession for individual misconduct of some person? No profession is free from corruption. A profession cannot be held responsible for individual conduct of some of its members.

  8. A. Ranganathan says:

    This and the related posts are just the tip of the iceberg. The new Modi government has a big job on hand to root out corruption. Corruption in one place leads to similar situations in other places in the hierarchy to subvert the legal process.

    Corruption in any form and at any place must cease. This can be achieved
    only by handing out severe punishment to those caught and found guilty.

    A. Ranganathan

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