Enter Keyword and Search





Thursday, January 28, 2010

Refund Fraud scamsters Identified in Income Tax department

with 2 comments


Refund Fraud scamsters Identified. Swift action by the Income tax Department to put in place a robust method of issuing refunds


No.402/92/2006-MC (05 of 2010)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated 25th January 2010
DRAFT PRESS RELEASE
On or about 12th January 2010, an officer in the Income Tax department, Mumbai, noticed that refunds had been issued from his jurisdiction without his knowledge or approval of his higher authorities. He immediately brought the matter to the notice of his superior officers.

2. On internal inquiry by the Income Tax department, it was found that User Ids and Passwords of certain officers had been fraudulently used to generate refunds in some cases. Upon detection of the fraud, the following actions were taken by the Income Tax department to contain the damage:-

(i) Stop payment orders were issued. As a result, refund outgo in at least two cases could be prevented. (ii) Investigation and search action was undertaken by the Directorate of Income Tax (Investigation), Mumbai to detect the bank accounts to which the refunds had been credited and the beneficiaries.

(iii) I-T investigators have identified the bank accounts, beneficiaries and some of the scamsters involved.

(iv) Mumbai police and CBI Mumbai have been informed.

3. Further actions being taken to prevent the recurrence of such frauds are as follows:-

a) All high value refunds issued during the current financial year will be cross-verified.

b) The system of handling high value refunds will be replaced with a more robust and foolproof system.





Disclaimer:As and when orders amending the rules are published by the Government, the amendment orders will be published in our blog immediately. Readers are requested to refer to the source link is given at the end of the post. All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. 90paisa accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog. Links to other websites that have been included on this blog are provided for public convenience only. 90paisa is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.