Income Tax return fraud: Raids conducted at multiple locations across Kashmir [details]

Over 28,000 government employees serving in different departments in the Union Territory of Jammu and Kashmir were identified for committing fraud in filing Income Tax Returns.

After identifying thousands of government employees who have adopted fraudulent means in the filing of Income Tax Return (ITR), the teams of the Economic Offences Wing, Srinagar on Monday carried out searches at various residences and offices in a case related to this case.

The Income Tax Department has singled out over 28,000 government servants for claiming bogus refunds worth crores of rupees.

Reports said that the raids were carried out, in the presence of Executive Duty Magistrates, at numerous residences and office premises of accused/ suspect individuals allegedly involved in Case FIR Numbers 27/2023 and 28/2023 of P/S EOW, Srinagar (CB-Kashmir).

The cases pertain to the criminal manipulation/ tampering of electronic and other data, which enabled the perpetrators of the crime to fraudulently claim a refund of Income Tax shown to have been earlier deducted at source etc.

The criminal acts have resulted in wrongful pecuniary gain running into crores of rupees to the accused individuals while causing a corresponding financial loss to the Income Tax Department, Government of India.

These cases had been registered on 25-05-2023 upon receipt of a complaint from the Office of the Principal Commissioner of Income Tax, Srinagar.

The searches were carried out as part of the ongoing investigation of the cases. Due diligence and all procedures mandated by law were followed in conducting the searches.

Although no arrests were made during the search operation, some incriminating documents, desktop and laptop computers, etc. have been recovered and seized. These have been taken on record for examination and further analysis as probable evidence in the cases.

Over 28,000 employees file IT returns on fake documents

The Income Tax Department in Kashmir Valley has identified over 28,000 government servants for claiming bogus refunds worth crores of rupees. These employees have reportedly attached fake documents while filing their income tax returns to claim refunds.

Those under the scanner of the Income Tax Department included police and paramilitary force personnel deployed in different parts of Jammu and Kashmir.

These frauds were detected while analyzing Income Tax Returns (ITRs) filing seasons in 2020-21 and 2021-22.

The alleged irregularities came to light sometime back after the Tax Deducted at Source (TDS) wing of the department located in Srinagar found that a number of people who are assessed in the Union Territory of J-K had claimed excessive and ineligible deductions.

The Income Tax (IT) Department, Srinagar, has already filed FIRs against a Chartered Accountant and 404 other persons in Jammu and Kashmir in bogus refund cases.