The CBI's FIR alleges involvement of Infosys and I-T officials
"The unknown officials of Infosys Technologies who were entrusted with the work of processing the returns and the I-T officials at CPC and were authorised to approve issue of refunds are suspected to have connived with Shastri," said the CBI.
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According to the FIR that was lodged, Nagesh Shastri filed 1,010 revised tax returns using forged documents in the names of 250 taxpayers of various private firms, during three assessment years and claimed refunds of around Rs. 5 crore illegally.
I-T officials said Shastri's modus operandi involved filing returns for salary cases claiming false/inflated loss from house property to claim refunds fraudulently.
Funds acquired fraudulently have been shared among the accused
"Source information revealed that the amount has been later shared among Shastri and unknown officials of the I-T department, Infosys Technologies and others," added the CBI, explaining where the fraudulent funds went.
Infosys was tasked with validating the e-returns in bulk and generate list of cases where refunds have to be approved.
CBI officials found that despite the assessment system having a tagging and pop-up notification system for revised tax returns, due attention was not given.
Additionally, it's suspected that I-T officials were involved since they were the ones with the power to approve refunds.