The Central Bureau of Investigation (CBI) which is a probing a case against nine persons, including a Deputy Commissioner (IRS)(Income Tax) & two I-T inspectors posed in Mumbai of Income Tax Department, five Chartered Accountants (CAs) and one private person and unknown others on the allegations of attempts by these accused to defy and sabotage the purpose of 'the Faceless Scheme of Assessment' introduced by the Government of India, it has been learnt that a group of CAs had created a network involving links within the I-T department and some middlemen for taking undue benefit by revealing the identity of faceless Assessing Officers (AOs). The probe also revealed that certain CAs operated as Nodal points for particular regions in order to approach assessees.
According to the CBI sources, from analysis of WhatsApp chats found from the personal devices of one of the accused persons D.K. Agrawal from Delhi, it appears that a group of CAs have created a network involving links within the department & some middlemen for taking undue benefit by revealing the identity of faceless AOs. The I-T department had also found two broad modus operandi from analysis of the chats - high refund cases are identified and then the group of CAs facilitated by Agrawal approach assessees with offer for early processing of the same and in pending faceless assessments, issues & proposed additions are shared with CAs to approach assesses. Further, where the assessee side shows interest, AOs are identified for settlement of cases by facilitating contact between assessee and AO, generally through respective nodal CAs.
"Multiple WhatsApp chats have also been found between D.K. Agarwal and Vijayendra R., a 2015 Batch IRS Officer posted in Delhi, wherein information regarding AOs and issues along with quantum in various pending cases in faceless proceedings had been shared by Vijayendra R. This information was then being shared by Agarwal with various CAs to coordinate with interested assesses for favorable settlement with faceless AOs," said a CBI official.
Recently the Government of India has introduced a series of futuristic reforms in Direct Tax administration for the benefit of taxpayers and the economy. 'Faceless Scheme of assessment' is one such reform where there is no human interface between taxpayers and tax officials. The Scheme is accordingly designed so that, the assessee does not come to know who the assessment/appellate officers are. However, to beat this system, a group of CAs in active assistance and criminal conspiracy with some income tax officials were unauthorizedly and clandestinely disclosing the names of Assessing officers/Appellate officers to the assessees and also unauthorizedly using the sensitive income tax data pertaining to pending assessment or appeal cases and high refund cases to approach the concerned assessee or his CA for pecuniary benefits.
