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I-T department busts fraudulent tax refund racket by IBM, Infosys, Vodafone employees

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I-T department busts fraudulent tax refund racket

The Income Tax department on Wednesday conducted searches at the premises of an unidentified CA and seized bogus claim documents of his clients.

In a major step against economic frauds, the Income Tax Department on Thursday busted a racket of extracting fraudulent tax refunds of employees of leading companies like IBM, Vodafone and Infosys with alleged collaboration of a chartered accountant (CA) in Bengaluru.

According to the I-T department, its investigation wing, on Wednesday, conducted searches at the premises of an unidentified CA and seized bogus claim documents of his clients along with WhatsApp messages.

In a statement released on Thursday, the central tax monitoring department said that the accused CA was “found to be instrumental in filing false income tax returns and making fraudulent refund claims by citing inflated or false claims of loss from house property”.

Allegedly, till date the CA has filed “nearly 1000 returns with loss from house property, aggregating to loss claim of Rs 18 crore” and the I-T department is closing monitoring the tax refunds of employees of over 50 Bengaluru-based prominent or medium-scale companies.

“It is noted that employees from some of the reputed companies such as IBM, Vodafone, Saplabs, Biocon, Infosys, ICICI Bank, CISCO, Thomson Reuters India Limited among others have also resorted to such fraudulent claim of refunds by filing revised returns of their individual income,” said the department.

Further stating that the officials have questioned many employees suspected to be involved with the racket, a senior official of the tax department said, “This is a case that is building up. Such a large-scale action in cases of employees seeking false refunds has been undertaken by the tax department for the first time.”

Officials also stated that many employees, who were quizzed by the department, claimed to have no “real loss” under the ‘income from house property’ category. Moreover, most employees have shifted the blame to the accused CA, stating that he said “he can get refunds for them by making some claims”.

“They also deposed that, out of the refund received, the auditor (CA) had charged 10% as incidental charges. Some WhatsApp messages with auditor were also shown by them, as supporting evidence,” the department said.

However, the CA claimed that he had filed the bogus claims at the “insistence of his clients”.

“Further enquiries like examination of his (CA’s) other clients and cross examination of them with the CA are being conducted. Necessary action as per law will be taken against the CA as well as the persons who have claimed wrong refunds under the provisions of Income Tax Act,” read a statement from the department.

India News

Rahul Gandhi alleges institutional bias, questions electoral system during Berlin address

Rahul Gandhi alleged that India’s institutions and electoral system have been weaponised to favour the BJP, remarks that sparked a strong political response.

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Rahul-Gandhi

Leader of the Opposition in the Lok Sabha, Rahul Gandhi, has said that India’s institutional framework is facing a serious challenge and has been used to favour the ruling BJP. Speaking during an interaction at the Hertie School in Berlin, Gandhi questioned the functioning of key institutions and the electoral machinery, remarks that triggered a sharp political response from the BJP.

Gandhi said the Congress believes there is a problem with the electoral system and alleged that several institutions have been captured. Referring to investigative agencies, he claimed that bodies such as the CBI and the ED have been used as political tools. According to him, cases filed by these agencies overwhelmingly target those opposing the BJP, while leaders from the ruling party face none.

He also pointed to what he described as a stark financial imbalance between the BJP and the opposition, claiming a funding ratio of 30:1. Gandhi said this disparity reflects how institutions are being used to consolidate political power.

Opposition strategy and INDIA alliance

The Congress leader said merely pointing out problems in elections is not enough and stressed the need for the opposition to build a system of resistance that can effectively counter the ruling party. He added that the challenge now goes beyond electoral contests and is about presenting an alternative vision for the country.

On the INDIA alliance, Gandhi said the unity among opposition parties is rooted in their rejection of the ideological position of the RSS. While acknowledging that tactical contests between alliance partners will continue, he said they remain united when it comes to opposing laws they disagree with and working together in Parliament.

BJP hits back at remarks abroad

Gandhi’s comments delivered overseas drew a strong reaction from the BJP. Party president and Union minister JP Nadda accused him of speaking against India while Parliament is in session and claimed that he was undermining the country’s image at a time when the Prime Minister is receiving global recognition.

BJP spokesperson Shehzad Poonawalla also criticised Gandhi, alleging that he routinely travels abroad to defame India. He accused the Congress leader of making misleading claims about the country’s institutions and economic activity while praising China.

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DU VC Prof Yogesh Singh entrusted with additional charge of AICTE Chairman

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Prof. Yogesh Singh, Vice Chancellor of the University of Delhi, has been entrusted with the additional charge of the post of Chairman, AICTE till the appointment of a Chairman of AICTE or until further orders, whichever is earlier.

It is noteworthy that AICTE Chairman Prof. TG Sitharam was relieved of his duties after his term ended on December 20, 2025. According to a letter issued by the Ministry of Education, Government of India, on Monday, Prof. Yogesh Singh’s appointment is until the appointment of a regular AICTE Chairman or until further orders whichever is earlier.

Prof. Yogesh Singh is a renowned academician with excellent administrative capabilities, who has been the Vice-Chancellor of University of Delhi since October 2021. He has also served as the Chairperson of the National Council for Teacher Education. In August 2023, he was also given the additional charge of Director of the School of Planning and Architecture (SPA).

Prof. Yogesh Singh served as the Vice-Chancellor of Delhi Technological University from 2015 to 2021; Director of Netaji Subhas Institute of Technology, Delhi from 2014 to 2017, and before that, he was the Vice-Chancellor of Maharaja Sayajirao University, Baroda (Gujarat) from 2011 to 2014. He holds a Ph.D. in Computer Engineering from the National Institute of Technology, Kurukshetra. He has a distinguished track record in quality teaching, innovation, and research in the field of software engineering.

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India News

Goa nightclub fire case: Court extends police custody of Luthra brothers by five days

A Goa court has extended the police custody of Saurabh and Gaurav Luthra, owners of the nightclub where a deadly fire killed 25 people, by five more days.

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Luthra brothers

A court in Goa on Monday extended the police custody of Saurabh Luthra and Gaurav Luthra, the owners of the Birch by Romeo Lane nightclub, by five more days in connection with the deadly fire incident that claimed 25 lives on December 6.

The order was passed as investigators sought additional time to question the two accused in the case linked to the blaze at the Anjuna-based nightclub.

Owners were deported after fleeing abroad

According to details placed before the court, the Luthra brothers had left the country following the incident and travelled to Thailand. They were subsequently deported and brought back to India on December 17, after which they were taken into police custody.

Advocate Vishnu Joshi, representing the families of the victims, confirmed that the court granted a five-day extension of police custody for both Saurabh and Gaurav Luthra.

Another co-owner sent to judicial custody

The court also remanded Ajay Gupta, another owner of the nightclub, to judicial custody. Police did not seek an extension of his custody, following which the court passed the order, the victims’ counsel said.

The Anjuna police have registered a case against the Luthra brothers for culpable homicide not amounting to murder along with other relevant offences related to the fire incident.

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