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Advice needed - forgery

(Querist) 05 October 2011 This query is : Resolved 
I have been depositing Tax through my CA. Recently I got a demand notice from Income tax.

When I checked tax paid details, I noticed that the receipts look fraud. CA has not been depositing the money and just giving a fraud receipt.

What legal option is recommended in this case? Please advise
ajay sethi (Expert) 05 October 2011
issue legal notice and file criminal complaint against CA for cheating under section 420of IPC
Vinay Rana (Querist) 05 October 2011
Thanks Ajay for your reponse.

Please let me know if I can lodge a complaint against 420 of IPC in a police station in my area or does it have to be in a local police station in the residence area of CA.
Shailesh Kr. Shah (Expert) 05 October 2011
Jurisdiction of that police station,Where Payment was made.
ajay sethi (Expert) 05 October 2011
place where decption occurred and inducement made would have jursidction .

Chapter XIII of the Code deals with jurisdiction of the Criminal Courts in inquries and trials. Section 177 incorporates the ordinary/general rule of jurisdiction, as stated above, while the Sections following it, viz., 178 to 182 embody the exceptions. The general principle of law is that all crime is local and the jurisdiction to try a person for an offence depends upon the crime having been committed within the area of such jurisdiction. Section 182 states that any offence which includes cheating may, if the deception is practiced by means of letter of telecommunication messages, be Crl. M.C.No.1782/2009 Page 6 of 12 inquired into or tried by any Court within whose local jurisdiction such letters or messages were sent or were received; and any offence of cheating and dishonestly inducing delivery of property may be inquired into or tried by a Court within whose local jurisdiction the property was delivered by the person deceived or was received by the accused person.

11. In 1982 CLJ 1492 Bhola Nath Arora vs. State the territorial jurisdiction of the Court to try the offence under Section 420 of the IPC had been questioned; the ratio of the said judgment states that the place where deception has been practiced and the inducement made would have the jurisdiction to try the offence.

12. In AIR 1957 SC 857 Mubarak Ali Ahmed vs. The State of Bombay, Hon'ble Supreme Court while dealing with the question of jurisdiction of a criminal Court where the complainant was doing business from Goa and appellant at that time was in Karachi; the transactions between the two parties having been held through telephone, telegram and letters and at no time the appellant having been in Goa during the entire period of commission of the offence and he being only at Karachi, Pakistan; the Hon'ble Apex Court after examining the ingredients of Section 420 of the IPC had held that although the mis-representation and the deception was organized by the appellant while he was in Pakistan yet the consequences of the deception i.e. delivery of the Crl. M.C.No.1782/2009 Page 7 of 12 property had taken place in Bombay and as such the Courts in India would not be precluded from trying the said offence.
Vinay Rana (Querist) 05 October 2011
Payment was through Cheque.
Arun Kumar Bhagat (Expert) 05 October 2011
Proper section will be 409 IPC not 420 IPC apart from 467/468 IPC. Jurisdiction will be where receipts were handed over or payments were made to CA.
Vinay Rana (Querist) 05 October 2011
Thanks all for your replies. Really appreciated.
kuldeep kumar (Expert) 05 October 2011
i agree to experts
Guest (Expert) 05 October 2011
Dear Vinay,

Can you please clarify, in whose name the cheques were issued for payment towards tax?
R.Ramachandran (Expert) 05 October 2011
Exactly. Please clarify as to in whose name you issued the cheque - whether in the name of the Income Tax Department or CA or self cheque or bearer cheque?
Raj Kumar Makkad (Expert) 05 October 2011
The query raised by Dhingra ji and Ramachandran ji is very crucial to provide definite reply to your query. If cheque was issued in the name of CA or it was self then no offence is made out unless you have some other reliable evidence in your possession like receipt/confirmation in writing of that CA having received the mentioned cheques for the purpose of depositing in your IT demands.

You clarify first then seek definite reply.
s.subramanian (Expert) 06 October 2011
I fully agree with the opinion of Mr.Makkad. Unless you have concrete evidence that the payments were made towards income tax you cannot frame the CA for fraud and misappropriation.
prabhakar singh (Expert) 06 October 2011
right!the facts lack here for proper guidance.
dev kapoor (Expert) 06 October 2011
Almost all experts here have given the best advice. to the best of their experience.
What I emphasize is (i) If CA has been made payment for payment of tax,it matters hardly how cheques were made though a little difficulty will be faced;
(ii)The courts at the place whence cheques were issued for payment are equally competent & have jurisdiction in the matter;
(iii) The case is one u/ss.406,409 & 420 IPC.A complaint as well as FIR can be lodged for the same.Or Magistrate can send case for inquiry under section 202 Cr.P.C.
NEVER BOTHER GO AHEAD.You have a good case.Make sure that the amount of cheques issued by you corresponds to the amount due for Tax payment.Rest assured you have a good case !!!!!!
Vinay Rana (Querist) 07 October 2011
Let me thank the experts again for taking time to reply.

I checked the details for all the payments.

Payments were made by Cheques. However, the statement does not indicate the name of the CA.

I remember, he asked me to cross the cheque but asked me not to write name as he was not sure to which account he will deposit.

As asked by Mr. Dev Kapoor, yes amount corresponds to the tax payment due except rounding off.

Thanks
Guest (Expert) 07 October 2011
Dear Shri Rana,

Any action in a hurry can bounce back on you unless you have a solid proof against your CA. You should not assume your CA to be so simpleton if your bank statement does not show his name against the clearance of cheques.

So, I won't recommend you to launch a case without confirming facts with reference to your bank statements and validity of receipts granted by the bank on deposit of tax money. So, please clarify following more points:

1) Whose name is indicated in the bank statements against the cleared cheques?

2) What is the reason behind your presumption of fake/fraud bank receipts for tax deposit?

Certainly, if your cheques were not presented along with challans, some other party's cheques would have been deposited, which might have bounced. So, better contact your bank to investigate the matter first before you decide to file a cheating case.
Vinay Rana (Querist) 09 October 2011
Dear Mr. Dhingra,

Reply to your questions:

1. Bank statement just gives the reference number of Cheque. There is no name.

2. Actually for Assessment year 10-11, he was to deposit around 78000 for my tax but he only deposited 29000. I followed up with him and told him why he has not made full payment. Since the matter pertained to recent transaction so he deposited the remaining amount. Assessment Year 10-11 is fine now.

I received a demand notice for 2008-2009 from IT department in July 2010. I have submitted the receipt which was given by CA. IT department of Noida have not come back to me yet. I am not sure if they have checked the payment details or not.

But my friend who was also getting the tax deposited through the same CA. He also had the demand notice from IT dept Delhi. When he submitted the receipt the IT department Delhi came back saying that they have not received the payment. He contacted SBI South Ex where the tax was deposited then Bank confirmed that they have not received any payment and the receipt is fake.

This CA has been using stamp of SBI South Ex and SBI Darya Ganj. Even signatures of Bank officials on the receipts are tallying.

He has been taking the money from me as cheque and depositing by cash or last transaction was through internet banking.


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