The Special Additional Chief Judicial Magistrate (ACJM) Court for CBI cases in Ahmedabad (Rural) on 29.11.2024 sentenced two individuals named Suresh G. Prajapati, a former Income Tax Practitioner and his wife Mrs. Sobhnaben Suresh Prajapati to three years imprisonment.
The court also imposed a total fine of Rs. 60,000 on the duo for their involvement in a case of obtaining fraudulent Tax Deducted at Source (TDS) refunds using false and forged TDS certificates.
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The case which was investigated by the Central Bureau of Investigation (CBI) dates back to December 31, 2007, when it was revealed that bogus TDS certificates were being used to claim fraudulent income tax refunds from Ward 12(3) of the Income Tax Office, Narayan Chambers, Ahmedabad.
The investigation identified that Suresh G. Prajapati had filed numerous income tax returns on behalf of individual taxpayers attaching counterfeit TDS certificates to claim refunds. These actions resulted in the misappropriation of funds amounting to Rs. 3,61,298.
Following the investigation, the CBI filed chargesheets on December 31, 2008, and January 3, 2011, detailing the fraudulent practices employed by the accused. The prosecution explained that the duo had exploited their positions and the income tax system to arrange the scam.
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After a thorough trial, the court found the accused guilty which led to the sentencing. This verdict shows the judiciary’s commitment to protecting financial fraud and protecting public funds. The CBI has shown its commitment to investigating and prosecuting such cases to prevent misuse of government resources.
In July 2023, the Enforcement Directorate (ED) arrested former Income Tax Inspector Tanaji Mandal Adhikari and two businessmen for orchestrating a Rs. 263 crore TDS refund scam. The accused generated fake TDS refunds during Adhikari’s tenure in Mumbai. Also, In June 2023, the Income Tax Department found a Rs. 40 crore tax refund scam involving eight tax consultants and several employees from various sectors. The consultants filed fraudulent tax returns to claim undue refunds.
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