Tax Fraud by Professionals: HC Shields Honest Assessee from Criminal Liability

Kiran Kubendra Kalal Vs Income Tax Department Rep. (Karnataka High Court) Allegation: In AY 2008-09, petitioner’s return showed tax of ₹17,090. However, challan submitted showed only ₹1,090 paid, with an extra digit “7” inserted in the challan to make it appear ₹17,090 was deposited. Complaint: Filed under Sections 276C(2) & 277, IT Act (wilful tax evasion & false verification). Petitioner’s Stand Paid full ₹17,090 to his Chartered Accountant (CA). Fraud was committed by CA & staff (accused nos. 2–4), who deposited only ₹1,090 and altered the challan. S...