Tax fraud and PAN misuse are serious offences that can lead to significant legal consequences. Consequently, individuals or entities involved in manipulating their income, assets, or financial reports to evade taxes risk facing audits. Moreover, they may incur hefty fines or even imprisonment. The Permanent Account Number (PAN) serves as a crucial identifier in the Indian taxation system. In addition, misuse of this number, such as using someone else’s PAN or failing to report accurate income, creates discrepancies that authorities monitor closely. Therefore, it’s essential for taxpayers to remain compliant. To this end, they should maintain accurate financial records and report income truthfully to avoid falling into the traps of tax evasion and its repercussions.

Growing incidences of tax fraud and PAN misuse in India. Innocent and gullible people are easy prey in the hands of such fraudulent elements.

🚨Tax Fraud and PAN Misuse: A Victim’s Ordeal of Tax Evasion and PAN Misuse in India 🚨

The proliferation of digital services and identity verification systems, while enabling ease of business, has unfortunately fuelled a parallel rise in sophisticated financial crimes. (Tax Fraud and PAN Misuse)
Instances of tax fraud and the illegal misuse of Permanent Account Numbers (PANs) are growing at an alarming rate.
This is turning innocent citizens into unwitting victims of massive financial conspiracies.

This post explores a specific case currently before the Uttar Pradesh Information Commission (UPIC), which dramatically illustrates the systemic challenges a victim faces. Mahesh Pratap Singh (Yogi M P Singh) finds himself caught between two powerful investigating bodies: the Income Tax Department and the State Police.

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The Confusing Nature of the Crime (Tax Fraud and PAN Misuse)

The crux of this matter, as detailed in the appellant’s submission, is its confusing complexity.

Pole 1: The Massive Tax Fraud ($350 Million) (Tax Fraud and PAN Misuse)

The primary financial crime involves a tax fraud estimated at ₹350 million (approximately $4.2 million USD). This segment of the crime is under investigation by the Intelligence and Criminal Investigation (I&CI) wing of the Income Tax Department (ITD).

• Key Challenge: This scale of fraud typically involves a nexus of shell companies and sophisticated financial manipulation, which Mr Singh now must confront. The case suggests that these perpetrators potentially control the large-scale tax evasion while misusing their identities.

Pole 2: The Identity and PAN Misuse (Tax Fraud and PAN Misuse)

The second, and equally damaging, pole of the crime is the illegal misuse of Mr Singh’s PAN. This identity theft has manifested in two critical ways:

1. Bank Loan Fraud: Fraudulent elements allegedly secured loans from banks using the victim’s PAN details.
2. Corporate Impersonation: Over 200 companies/firms have fraudulently used his PAN to register their businesses. This is evidenced by the attached Tax Information Summary (TIS). These companies have conducted financial transactions, including those related to the ₹350 million tax fraud. This practice appears to be continuing even as the police investigation is underway.

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The Victim’s Plight: Caught in the Crosshairs

The victim’s reality is a Kafkaesque struggle against official bureaucracy and criminal elements. The email highlights his attempts to seek justice through an RTI Second Appeal (File No. S01/A/0061/2024), where he is asking for a progress report from the Public Information Officers of the Superintendent of Police, Cyber Crime, Lucknow, and the Senior Superintendent of Police, Mirzapur. (Tax Fraud and PAN Misuse)

The Summons from the Income Tax Department (ITD) (Tax Fraud and PAN Misuse)

A central piece of evidence is the summons under Section 131(1A) of the Income Tax Act, 1961, issued by the Assistant Director of Income Tax, Investigation (ADIT/DDIT(Inv.)), 5(1), New Delhi, dated April 16, 2025.

• The Irony: The ITD, recognising the fraud through its own intelligence, is pursuing the case. However, the summons addresses the victim, Mahesh Pratap Singh, with a Delhi address (1/1947/2, East Ram Nagar, Shahdara) that he vehemently states does not belong to him. Mr Singh’s actual address is in Mirzapur. The fraudulent entity is operating from Delhi, yet the genuine individual is summoned to explain the accounts.
• The Demand: The notice demands he produce voluminous personal and business records dating from FY 2018-19 to the present, including the following:
  • Detailed notes on his source of income and business activities.
  • Computation of income, balance sheets, and profit & loss accounts.
  • Details of all bank accounts maintained in the name of the firm.
  • Self-certified copies of ledgers for specific companies, namely M/s SV Facility Services Private Limited (PAN-AAQCS8380L) and M/s Mehak Enterprises (PAN: BXJPS3666M), demonstrate their direct involvement in the fraud, as indicated by the TDS statement showing a $92,000 tax deduction by SV Facility Services alone.

The victim must now prove his innocence concerning transactions involved in a ₹350 million scam, all while facing emotional and financial strain.

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The Question of Police Action and Inter-Agency Cooperation

Mr. Singh has an existing FIR No. 291/2023 registered under Section 420 IPC (Cheating) and 66C, 66D IT Act (Identity Theft and Cheating by Personation) at Kotwali Katra, Mirzapur; notably, this registration occurred on November 11, 2023.

The key question raised by the appellant to the Chief Information Commissioner is critical:
Why has the State Police not initiated strong action against the fraudulent elements?
These are the individuals who misused the PAN, parallel to the ITD’s investigation.

Mr Singh argues that the I&CI wing of the ITD uses the latest technology to track financial crimes. The police’s slow pace, in contrast to the ITD’s aggressive pursuit (which now targets the victim), creates a legal limbo.

The fraud clearly identifies its dual beneficiaries: (Tax Fraud and PAN Misuse)

1. The Government: Receives the Tax Deducted at Source (TDS) on the fraudulent transactions (which legitimises the fraud).
2. The Bank Account Holders: These are the real culprits who misused the PAN to open accounts and execute the fraud, essentially syphoning off the principal amount and using the tax payments as a cover.

The victim’s plea before the UP Information Commission is a call for accountability and coordination. He seeks a proper progress report from the police, hoping that the intervention of the highest information authority in the state will force action and provide him relief from the unrelenting notices of the Income Tax Department.

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A Call for Systemic Change

This case serves as a stark reminder of the urgent need for enhanced inter-agency cooperation between the Income Tax Department, the police, and cybercrime units. When a victim must navigate from the state police to the central tax authority to prove he is not a criminal, the system designed to protect citizens fails. The outcome of this hearing on April 30, 2025, before the UPIC, will critically test how India’s investigative and regulatory bodies respond to the growing menace of organised financial identity theft. (Tax Fraud and PAN Misuse)

For your reference, here are the official web links and contact channels for the Income Tax Department of India. These are useful for filing returns, tracking refunds, or lodging formal complaints (Grievances).¹

1. Official Portals (Tax Fraud and PAN Misuse)

• e-Filing Portal: http://www.incometax.gov.in
  • Purpose: Filing Income Tax Returns (ITR), checking refund status, linking Aadhaar-PAN, and responding to notices.²
• Main Departmental Website: http://www.incometaxindia.gov.in
  • Purpose: Accessing tax laws, rules, circulars, and the Taxpayer’s Charter.³
• TDS-CPC Portal (TRACES): TRACES):www.tdscpc.gov.in
  • Purpose: Viewing Form 26AS (Tax Credit Statement), TDS/TCS corrections, and downloading Form 16/16A.⁴

2. Grievance & Complaint Links (Tax Fraud and PAN Misuse)

If you have an issue with a pending refund or an unresponsive officer, use these:

• e-Nivaran (Post-Login): Log in to the e-Filing Portal → Go to the ‘Grievances’ tab → ‘Submit Grievance’.
• CPGRAMS: pgportal.gov.in
  • Purpose: A central government portal where you can lodge complaints against the Income Tax Department if local grievances are not resolved.
• Regional Grievance Contacts: Regional Grievance Redressal Units

3. Official Helpdesk & Support (Tax Fraud and PAN Misuse)

Query Type	Toll-Free / Contact Number	Email Address
General e-Filing & ITR	1800 103 0025 / 1800 419 0025	itrhelpdesk@incometax.gov.in
AIS / TIS / Reporting	1800 103 4215	Via AIS Portal Help Menu
PAN / TAN (NSDL)	020-27218080	tininfo@proteantech.in
TRACES (TDS)	1800 103 0344	contactus@tdscpc.gov.in
Website Technical Issue	—	webmanager@incometax.gov.in

4. Search for Jurisdictional Officer (Tax Fraud and PAN Misuse)

If you need to find the specific Assessing Officer (AO) for your area (like Mirzapur):

• Know Your AO:Link to AO Search
  • You will need to enter your PAN and a mobile number for OTP to see the designation and office address of your jurisdictional officer.

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Would you like me to help you draft a formal grievance letter for the Income Tax portal regarding any pending tax matter?

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