City CA firm under IT scanner in fake deduction racket

Lokmat News Network

Chhatrapati Sambhajinagar

A chartered accountancy firm in Cidco’s Thakarenagar came under the Income Tax Department’s scanner on Monday as part of a massive nationwide crackdown on fake deduction and refund claims. Raids were conducted at over 150 locations across six states, including three key sites in the city.

The early morning action, which began at 5:30 am, targeted the CA's residence, a junior commerce college in CIDCO N-4, and the firm’s office near Harsul T-point. Senior IT officials from Punjab, Mumbai, and Nashik led the operation, which continued till late at night. The firm had earlier been raided in 2015 on similar charges. According to sources, the searches were based on data analytics, artificial intelligence, and field intelligence that uncovered large-scale refund rackets involving bogus claims, fake documents, and middlemen. The coordinated raids also covered parts of Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and Madhya Pradesh, where officials say substantial evidence of tax evasion and loss to the exchequer was found. In an official release, the Income Tax Department warned that those involved in fraudulent refund claims would face criminal prosecution, monetary penalties, and property seizure.