SIGN IN SUBSCRIBE

News Update

IndiGo orders 30 Airbus A350s for long haulsFiling of Form 10A & 10AB: CBDT extends due date to June 30RBI to issue fresh guidelines for banks to freeze suspected bank accounts being used for cyber crimesCPGRAMS recognized as best practice in Commonwealth Secretaries of public serviceIsrael-Iran War: A close shave for Global Economy but for how long?KABIL, CSIR ink MoU for Advancing Geophysical InvestigationsI-T - If income from stock-in-trade are held as investments, then provisions of section 14A would apply to such income: ITATTRAI recommends on Infra Sharing, Spectrum Sharing & Spectrum LeasingI-T- Revisionary powers u/s 263 can't be exercised when AO has neither assumed facts incorrectly nor there is incorrect application of law : ITATTechnology Board okays funding of Dhruva Space's Solar Array ProjectI-T- Issue of interest is debatable issue on which two views are possible and AO accepted one of views for which PCIT cannot assume revisional jurisdiction: ITATHealth Secy visits Bilthoven Biologicals, discusses production of Polio VaccineI-T - Estimation of profit element from purchases should be done reasonably if assessee could not conclusively prove that purchases made are from parties as claimed, in absence of confirmations from them: ITATStudy finds Coca-Cola accounts for 11% of branded plastic pollution worldwideI-T- Triplex flats purchased are interconnected and can be considered as 'a residential unit'' as per definition of section 54F of Act : ITATDelhi HC says conspiracy against PM is a crime against StateI-T- AO omitted to probe issue of cash payments made over specified limit; revisionary power u/s 263 is rightly exercised: ITATBrazil makes new rules to streamline consumption taxesI-T-Power of revision unnecessarily exercised where AO had no scope to examine creditworthiness & genuineness of assessee's creditors: ITATBiden signs rules mandating airlines to give automatic refunds for delayed or cancelled flightsI-T-As per settled law, in absence of enabling powers, no disallowance can be made : ITATBYD trying to redefine luxury for new EV variantsGST - On the one hand, the order states registration is liable to be cancelled retrospectively and on the other hand mentions that there are no dues - Order modified: HCSC asks EC to submit more info on reliability of EVMsRight to Sleep - A Legal lullaby
 
ITC fraud - DGGI makes arrests in fake invoice case

By TIOL News Service

 

NEW DELHI, NOV 21, 2020: TWO men were arrested by the Gurugram zonal unit of the Directorate General of GST Intelligence (DGGI)for creating fake invoices and fraudulently claiming input tax credit (ITC) worth Rs. 26.06 crore.

The two men, cousins Mr Naresh Mittal and Mr Chhedi Lal Mittal, were proprietors of two firms in Naya Bazar, Delhi, and were receiving huge amounts by creating fake invoices without goods from several companies and were converting them into cash through angadias (parallel banking system). They then returned the cash to the respective firms after deducting their commission.

An investigation was already undergoing in respect of fake invoices by a firm situated in the Sadar Bazar area of Delhi from 22 suspicious businesses.

The investigating officers had visited the registered addresses of these businesses and found them to not be in existence with the proprietors' information also falsified.Fabricated electricity bills and fake rent agreements were uploaded on the GST portal for obtaining registration. Even bank account details declared in the GST registration were either found non existing or in other persons' names.

The proprietor of the firm in Sadar Bazar was also questioned but failed to submit details about the payments and purchases before the deadline. Further investigations into bank payment details also showed that while in the narration of the transfer entry, vendor firms' names were appearing, but the crediting accounts were in the names of a different person or organisation.

Two such firms werePrag Enterprises and PC Traders run by the Mittal cousins. Mr Chhedi Lal also stated that he has created four fake businesses in the names of other persons and had supplied fake bills without goods in exchange of 4-5% commission. But once he found out about the investigations into Firm X, he closed the old businesses and opened new ones to continue with the fraud.

The four firms have availed a fake credit of Rs. 26.06 crores and have passed on fake credit of Rs. 25 crore.

The cousins were arrested on November 19 and are in judicial custody as further investigations continue.


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST