CBI finds Infosys and I-T involvement in tax return fraud
Officials of the CBI's Anti-Corruption Bureau, who have been investigating a 'revised tax return' fraud since late January, have found that I-T officials and Infosys employees connived with the Bengaluru-based chartered accountant Nagesh Shastri, the main accused in the fraud. While Shastri was filing false returns, I-T officials and Infosys (charged with processing the e-returns) reportedly turned a blind eye. Here's more.
The CBI's FIR alleges involvement of Infosys and I-T officials
"The unknown officials of Infosys Technologies who were entrusted with the work of processing the returns and the I-T officials at CPC and were authorised to approve issue of refunds are suspected to have connived with Shastri," said the CBI.
Shastri claimed refunds of over Rs. 5 crore fraudulently
According to the FIR that was lodged, Nagesh Shastri filed 1,010 revised tax returns using forged documents in the names of 250 taxpayers of various private firms, during three assessment years and claimed refunds of around Rs. 5 crore illegally. I-T officials said Shastri's modus operandi involved filing returns for salary cases claiming false/inflated loss from house property to claim refunds fraudulently.
Funds acquired fraudulently have been shared among the accused
"Source information revealed that the amount has been later shared among Shastri and unknown officials of the I-T department, Infosys Technologies and others," added the CBI, explaining where the fraudulent funds went.
Refunds couldn't have been approved with Infosys, I-T officials
Infosys was tasked with validating the e-returns in bulk and generate list of cases where refunds have to be approved. CBI officials found that despite the assessment system having a tagging and pop-up notification system for revised tax returns, due attention was not given. Additionally, it's suspected that I-T officials were involved since they were the ones with the power to approve refunds.
