Police arrested accused for Income Tax cheating case

Telangana: Hyderabad: June 21 (HS) Hyderabad Police arrested accused Sanatana Ravi along with others cheated the government by creating fabricated CBDT notification for approval U/s 35 I.T. Act and availed tax exemptions up to 175% on donated amount without a valid exemption order.

Police received a complaint from Income Tax (Exemptions) Department, Hyderabad, against the Rural Development Society (Pan No. AAAAR4658N) represented by its president Sanatana. Ravi office at Punjagutta, Hyderabad, (Registered office Nallajerla East Godavari Dist.,)

The Rural development society is claiming to be involved in carrying out the research activities in rural areas particularly in Nalgonda Dist. and obtained Sec. 12(A) I.T Act registration which enable the society to claim under Sec. 80(G) I.T exemptions and also applied for approval U/s 35 of IT Act 1961 to the CBDT in the year 2017-18 and claiming fraudulent exemptions U/s 35 of IT Act, upon which the above FIR was registered and investigated.

During investigation it was found that, the IT Department by a survey found that, there was no laboratory at given premises and did not have any proper equipment to carry out Research & Development. Also, a fabricated CBDT notification for approval U/s 35 I.T. Act for the year 2013 in the email inbox of the S. Ravi was found which facilitates the donors to claim 175% of Tax Exemptions on donated amount. Basing on this fabricated document the assessed society has collected donations amount of Rs 37.13 Cr, Rs 4.7 Cr and 91.38 lakhs for the Financial years 2015-16, 2016-17, and 2017-18 respectively from the donors of approximately 200 members from Mumbai, Gujarat, Kolkata and returned the 95% donated amount to the donors by retaining 5% amount of donations as commission and facilitated Tax evasion, laundering of the funds, and cheated & defrauding the government of India.

The total tax less to the government is found to be around Rs 22.43 Crores by the accused society as well as possible donors by availing Tax exemptions of 175% on donated by using fabricated certificate U/s 35 I.T. Act. further investigation is in process.