Rs 12.6 lakh salary, Rs 9.2 crore transactions: Telecom company employee lands on Income Tax radar over businesses he claims he never owned

A salaried employee earning Rs 12.6 lakh a year has found himself under the scanner of the Income Tax Department after business transactions worth crores of rupees were allegedly carried out using his PAN and identity documents. The alleged fraud has left him facing questions over undisclosed income of Rs 9.2 crore, despite his claim that he had no connection with the businesses or transactions.

The Economic Offences Wing (EOW) of Delhi Police registered an FIR on November 3 after the telecom company employee approached the police, alleging that unknown persons had stolen his identity and used his documents to set up fictitious businesses.

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How fraudsters allegedly used his PAN to create fake businesses

According to the complaint, the accused allegedly used the man's PAN and KYC documents to secure two GST registrations in Delhi. They then created fictitious business entities, opened bank accounts in his name and reportedly used them to conduct transactions.

GST returns allegedly filed by these entities reflected a turnover of Rs 6.5 crore in just two months: April and May 2019.

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The complainant told investigators that he had never applied for GST registration or opened a business bank account. He also denied appointing any chartered accountant or tax practitioner, issuing or receiving tax invoices, or earning any commission or financial benefit from the transactions.

Income Tax notice brings alleged identity theft to light

The man reportedly learnt about the alleged misuse of his identity on September 9, when he received a notice from the Income Tax Department under Section 133(6) of the Income-tax Act.

The notice, dated August 20, was sent to an address in Ghaziabad where he had lived before vacating the property in 2013.

It was through the notice that he became aware of business transactions allegedly linked to his PAN and the tax department's questions about the income associated with them.

Rs 9.2 crore transactions attributed to PAN, employee claims

The alleged fraud came into sharper focus when the department attributed transactions worth Rs 9.2 crore to the man's PAN and sought an explanation regarding undisclosed income.

The employee maintained that his actual income for the financial year 2019-20 was Rs 12.6 lakh. He also told investigators that tax deducted at source (TDS) of Rs 1.4 lakh had been deposited against his earnings.

In his complaint, he expressed concern that his PAN and identity documents might have been misused for other financial activities as well. He feared that the alleged fraud could expose him to tax demands, penalties and even prosecution for transactions he claimed he had never carried out.

Delhi Police to examine role of others in alleged fraud

The EOW is investigating how the GST registrations were obtained and how bank accounts were opened using the complainant's documents.

Police will also examine whether any bank officials or individuals involved in processing the registrations played a role in facilitating the alleged fraud.

Further investigation is under way.