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

🚨 Unmasking the Double Fraud: 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 fueled a parallel rise in sophisticated financial crimes. Instances of tax fraud and the illegal misuse of Permanent Account Numbers (PAN) are growing at an alarming rate, turning innocent citizens into unwitting victims of massive financial conspiracies.

This post delves into a specific case, currently before the Uttar Pradesh Information Commission (UPIC), that dramatically illustrates the systemic challenges faced by a victim, Mahesh Pratap Singh (Yogi M P Singh), who is caught between two powerful investigating bodies: the Income Tax Department and the State Police.

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The Bipolar Nature of the Crime

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

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

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 the victim, Mr. Singh, is now being forced to contend with. The case suggests that this large-scale tax evasion is potentially controlled by the perpetrators who are misusing his identity.

Pole 2: The Identity 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: Critically, over 200 companies/firms, as evidenced by the attached Tax Information Summary (TIS), have fraudulently used his PAN to register their businesses and conduct 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.

The Summons from the Income Tax Department (ITD)

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, recognizing 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:
  • 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 regarding specific companies, namely M/s SV Facility Services Private Limited (PAN-AAQCS8380L) and M/s Mehak Enterprises (PAN: BXJPS3666M), which are directly involved in the fraud, as shown by the TDS statement ($92,000 in tax deducted by SV Facility Services alone).

The victim is now obligated to prove his innocence regarding transactions that involve a ₹350 million scam, all while grappling with the 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, dated 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 who misused the PAN, parallel to the ITD’s investigation?

Mr. Singh argues that the I&CI wing of the ITD is better equipped with the latest technology to track financial crimes. The police’s apparent slow pace, compared to the aggressive pursuit of the ITD (which is now targeting the victim), creates a legal limbo.

The dual beneficiaries of this fraud are clearly identified:

1. The Government: Receives the Tax Deducted at Source (TDS) on the fraudulent transactions (which legitimizes the fraud).
2. The Bank Account Holders: These are the real culprits who misused the PAN to open accounts and execute the fraud, essentially siphoning 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 is a stark reminder of the urgent need for enhanced inter-agency cooperation between the Income Tax Department, the Police, and Cyber Crime units. When a victim is forced to run from pillar to post, from the state police to the central tax authority, to prove he is not a criminal, the system designed to protect citizens is failing. The outcome of this hearing on April 30, 2025, before the UPIC, will be a critical test of how India’s investigative and regulatory bodies handle the growing menace of organized financial identity theft.

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

• e-Filing Portal:www.incometax.gov.in
  • Purpose: Filing Income Tax Returns (ITR), checking refund status, linking Aadhaar-PAN, and responding to notices.²
• Main Departmental Website:www.incometaxindia.gov.in
  • Purpose: Accessing tax laws, rules, circulars, and the Taxpayer’s Charter.³
• TDS-CPC Portal (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

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

• e-Nivaran (Post-Login): Login 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

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

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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