21 Yrs After Major Tax Fraud, Institute Debars Accountant
February, 04th 2016
Back in 1995, a chartered accountant created an elaborate scheme involving fake companies, fake income tax returns and fake certificates. But the refund the Income Tax department gave him was real. In just one year, he managed to get over Rs 20 lakh in refund. But his luck ran out the same year with the IT department calling his bluff. However, it has taken Institute of Chartered Accountants of India (ICAI) 21 years to suspend him for five years, that too only with the help of a High Court order that came a few days ago.
The ICAI, based in New Delhi, approached the Karnataka HC against G Girish, a chartered accountant based in Jayanagar. It was found that Girish had created false Tax Deducted at Source (TDS) certificates using fake credentials of companies and individuals.
When the refund came in the name of the fictitious companies and persons he had created, he managed to get them to his address by bribing the postman. The number of fictitious assessees he created was 96.
Girish did not respond to numerous notices slapped on him by the ICAI; the association then issued a prima facie opinion that the "respondent is guilty of misconduct" and referred the issue to its disciplinary committee. With no response still from Girish, the disciplinary committee decided to proceed against him ex parte.
Finding him guilty, the committee referred the matter to the HC so that his name was removed from ICAI 'Register of Members' for a period of five years.