The Income Tax Department of Jharkhand has widened its probe into the Rs. 2000 crores political funding linked tax evasion case, now targeting several chartered accountants who allegedly facilitated the scheme. Officials have recommended cancellation of their licences to the Institute of Chartered Accountants of India (ICAI).
The investigation found that a Gujarat based political party, Aam Janmat Party, had received crores in donations from over 500 high salaried professionals in Jharkhand and Bihar. The party allegedly kept 5% as commission and returned the remaining amount to donors through hawala channels. This allowed the donors to claim tax exemptions under Section 80GGC without actually contributing to political funds.
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CAs Accused of Facilitating Hawala Transfers
The Income Tax sleuths discovered that several chartered accountants were directly involved in routing the returned funds, in some cases depositing them in their own or relatives accounts. This has raised serious concerns over professional misconduct. The Income Tax Department’s findings have been formally submitted to ICAI, seeking revocation of the licences of the implicated professionals.
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ICAI Action Awaited
ICAI will now conduct hearings, giving the accused CAs an opportunity to present their defence before taking disciplinary action. Legal experts suggest that the case could lead to prosecution under tax evasion and money laundering laws, apart from professional penalties. Officials have said that this action is part of a larger crackdown on misuse of political donation exemptions and illegal hawala networks.
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