TEP

Tax Evasion Petition (TEP)

[1] Overview [2] Scope of TEP [3] Preparation before filing TEP [4] Filing TEP [5] Miscellaneous

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[1] Overview

1.1    Tax Evasion Petition is a complain letter to Income tax Department (CBDT) with proof to investigate the revenue loss to government ex-checker because of such evasion.

1.2    Necessity of TEP (1.2 to 1.3): In matrimonial disputes/cases, mostly wife always gives the list of ‘stridhan‘ 3-4 times from the actual list of stridhan, huge inflicted amount of dowry in her compliant (u/s IPC 406). TEP is the legal tool that can be used to counter such inflicted claims.

1.3    For this purpose, it should be complained to the Income Tax department to investigate into for verifying that they’ve declared that much income before the government or not. If they have not declared that much income, then recovery of the tax with some penalty shall necessarily be imposed.

1.4    Time to file TEP (Para 1.4 to 1.6): (a) If wife makes false allegation in DV (Domestic Violence case under Presentation of Woman from Domestic Violence Act 2005) affidavit case or in 498A FIR or in maintenance case under section 125 of CrPC that huge amount of money was spend in marriage and stridhan or dowry or exchange of money in the marriage (means fabricated story about expenses) if any.

1.5    (b) If Father- in-Law of husband has disproportionate assets with respect to his income, TEP may come into picture. It is required to show undisclosed income, unaccounted flow of cash, unexplained expenditure etc. to file TEP.

1.6    (c) If the value of the furniture, gold, cash were not proportionate to their income at the time of expenditure, TEP can be filed.

[2] Scope of TEP

2.1    Generally it takes around 1.5 years to 3 years depending upon follow up / RTI of respective claims. It’s a very slow process and hence requires patience and coolness of mind.

2.2    Advantage of filing TEP: The advantage of TEP are –

(a) This will go against the 498A / DV/ 125 CrPC case as it will expose their false allegations.
(b) One can screw down the 498A family royally, with this “Legal Cruelty” tool.
(c) It can be handled without legal aid. No lawyer expenses.
(d) Fire numerous RTIs based on the opponents’ profile to make TEP on the fast track.
(e) It is required to call the Investigation officer with Investigation report using witness summons in CROSS-EXAMINATION stage then all the false story of dowry will be nullified and their case is weak, there will be an upper hand.

2.3       Disadvantages of TEP: Like others, TEP also has some disadvantages which are required to discussed as it will give a good picture to figure out all the process. The dis-advantages are –
(a) It will not work when less amount is claimed as dowry/expences.
(b) Needs to cope up with time delay for RTI replies from govt. departments & information commission response for appeals.
(c) Government machinery may not work with expected efficiency. It requires huge patience and following up of the case.

(d) It is a very indirect method of attacking the opponents.

2.4    TEP investigation report is very important in fighting matrimonial cases as all matrimonial cases from Nagin (wife) side is based on fabricated story and contain inflected expenditure that attracts an action by the Income Tax Department.

2.5    In TEP investigation generally two cases arise – (i) Either the party (Nagin side) denied such expenditure that are reflected in various matrimonial cases filed by them or (ii) they may be penalised for evasion of tax. Hence, in both the cases, Warrior side is going to be benefited.

2.6    Effect to 498A victim family if one is able to successfully filed TEP: Following effects may be experienced:
(a) They need to pay the Tax of undisclosed income
(b) They need to disclose the source of income from unaccounted amount
(c) Plus penalty, which cannot be less than 100% of the evaded amount and not more than 300% of the evaded amount.
(d) Informant may be awarded with 10% prize amount.

[3] Preparation before filing TEP

3.1    Preparation before filing the TEP (Para 3.1 to 3.2): Before filing TEP, it is require to be prepared so that a strong TEP may be filed for cause of action. Hence, preparations regarding filing TEP are discussed in successive Paras hereinafter.

3.2    (a) Obtain the certified copies of the compliant (DV case, 498A case, 125 CrPC case).
(b) Obtain copy of the PAN number against whom TEP to be filed if possible. If PAN is not known or available, the full name, father’s name, address to be incorporated properly to enable Income Tax authorities to find out PAN details at their own.

(c) Prepare a strong and proper application as suggested and drafted at Para – 4.2.

(d) Use the address of Income tax department of the jurisdictional area against whom the
TEP is to be filed. Means to say that jurisdiction area of Nagin, Nagraj, Nagrani, Nagbhai etc.

(e) If PAN number is known then, it need to find out the actual jurisdiction.

3.3    Documents required to file the TEP: (a) TEP application- Format is available at Para – 4.2.

(b) DV case or CrPC 125 Case Affidavit or FIR copy of 498a or any authentic document as per evidence act where it is admitted that they spend huge money  in marriage / dowry /stridhan etc. Documents as discussed at Para 3.2 above.

3.4    Grounds for filling TEP:  If the relevant documents cited at para 3.2 & 3.3 and also have FIR copy/DV copy/Bills of marriage expenses claimed by opposite party wherein they have mentioned huge amount (beyond their capacity to spend) are available. Bills of marriage expenses claimed by opposite party, any detail wherein they have mentioned larger amount (beyond their capacity to spend). It will be better to have more and more information like their bank accounts statements, properties details etc.

[4] Filing TEP

4.1    TEP is required to be filed before the Income Tax Office of Nagin (Wife and their parent) side jurisdiction –

To

“The Chief Commissioner of Income Tax” of their jurisdiction with a copy to – (a) DGIT(Investigations) Income Tax Department, (b) The Member Investigation, CBDT, Department of Revenue, Ministry of Finance, North Block, New Delhi (c) The Prime Minister Office.

4.2Format of TEP Application: False/Imaginary names are used to draft the perfect application. It does not have correct identification or address and it does not relate to any other persons. If it however relates to any person, it may be a co-incident.

Format/Sample

Date: /03/2019

To

The Chief Commissioner of Income Tax

Office of the Pr.Chief Commissioner of Income-Tax (B&G), Patna

Central Revenue Building, 1st Floor, Birchand Patel Marg,

Patna-800001

Sub: Tax Evasion Petition for investigation into source of  income & tax liabilities against (i) Shri Raghwendra Kumar Singh,  S/o Late XXXXXXXXX Singh, PAN No.: Not known, (ii)  Smt. Savita Devi Singh, W/o Shri Raghwendra Kumar Singh, D/o  Late XXXXXXXX Singh bearing PAN No. xxxPx7692F.

Honourable Sir/Madam,

With due respect, this is a Tax Evasion complaint against following two members with details are :-

(ii)   Smt. Savita Devi Singh, W/o Shri Raghwendra Kumar Singh, D/o Late xxxxxxxxx Singh, PAN No.
xxxPx7692F (Area Code: PTN, AO Type: W, Range Code: 22, AO No. 5, Jurisdiction: ITO Ward 2(4) BIHARSHARIF, Building name: BIHARSHARIF BIHAR is resident Boring Road, behind A.N. College, Police Station: Srikrishnapuri, Distt: Patna – 800001, Mob: xxxxxxxxxx.

Background:

I, Warrior Kumar Singh , S/o Shri Stalward Kumar Singh, Address: _______________, Distt: MUZAFFARPUR (Bihar) – 842001, wish to bring to your kind attention towards following points for your kind perusal please.

2.1    That I married to Sakshi Kumari, D/o Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh resident of Boring Road, Behind A.N. College, Police Station: Srikrishnapuri, Distt: Patna – 800001 on 10/05/2016 at Utsav Palace, Kankarbagh, Patna according to Hindu Rites in presence of caste elders.

2.2    That My wife Smt. Sakshi Kumari framed a false charges and lodged a Maintenance Case No. xxx(M)/18 (Xerox of certified copy is enclosed as ‘A-1’ ) under section 125 of Code of Criminal Procedure (CrPC) before the Principal Judge, Family Court, Patna. It was claimed by Smt. Sakshi Kumari in her own admission that her father Shri Raghwendra Kumar Singh and her family member spend INR 3,000,000 (Thirty Lakhs) in marriage alongwith INR 1,000,000 (Ten Lakhs) as cash, Car, Electric Items viz. TV, Fridge, Washing Machine, 8 Tola Gold which costs appx. INR 3,00,000 (Three Lakhs) and other complete house hold required on 10/05/2016 in Financial Year 2016 – 17 (Assessment Year 2017 – 18). She also filed Domestic Violance Case No. XX/2018 (Xerox of Certified copy is enclosed as ‘A-2’ ) under Section 12 of Preventation of Woman from Domestic Violance Act 2005. Hereinafter, called PWDV Act 2005 u/s sections 5, 12, 18, 19, 20, 22 & 23 & Case GR No. xxxx/18 in the court of S.D.J.M. Patna under section 498(A)/34 and 3/4^th of Dowry Prohibition Act (Xerox of Certified copy enclosed as ‘A-3’).

2.3    That it needs to be verified how come Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh amassed such an astonishing wealth for that marriage.

2.4    That it becomes my duty as a patriot and citizen of India to ask the authorities to verify the source of Income and Tax returns filed by her parents Shri Raghwendra Kumar Singh & Smt. Savita Devi Sigh.

2.5    That it is submitted that Shri Raghwendra Kumar Singh is said to be an Teacher and her wife Smt. Savita Devi singh is a house wife.

2.6    That Sakshi Kumari is the eldest amongst all wards of Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh. Sakshi Kumari a student of Bachelor of Dental Surgery (BDS) in Buddha Dental College, Patna under Magadh University, Bodh Gaya. Copy of ID card/Examination admit card is enclosed in support. Here, it is pertinent to note that Buddha Dental College, Patna is a private Dental college which charges huge amount of money for donation at the time of admission, admission and annual fee for the said course. Rs. 4,00,000 (Four Lakhs) is charged as annual fee. Details of fee charged by the college is enclosed (Downloaded from official web page of the said Dental College). The estimated amount of expenditure incurred on her BDS course may be extracted out to as minimum as Rs. 5,00,000 (Five Lakhs) per annum on a rough calculation.

2.7    That Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh have 03 (Three) more daughters and 01 (One) son namely Miss Sanju Kumari Singh aged approx. 25 years, Miss Shweta Singh, aged approx. 20 years, Miss Rashmi, aged approx. 16 years & Rahul the son aged approx. 16 years respectively. Miss Sanju Kumari Singh aged 25 years is known to be a student of MBA in a renowned college of Patna and it’s MBA fee structure is almost 100,000 (One Lakh) means Rs. 50,000 (Fifty Thousand) per annum. Fee structure of that college is enclosed as ‘C-1′ downloaded from official web site of the college. Miss Shweta Singh is a student of Bachelor of Engineering at Laxmi Narayan College of Technology, Bhopal which is a private college/institution (Copy of her college ID is enclosed as D-1) and residing at Bhopal in Pvt. Girls’ hostel as known from sources information. An expected minimum amount of expenditure on Miss Shweta may be extracted out Rs. 1,75,000 per annum (Copy of communication through email with college authority is enclosed as D-2). Miss Rashmi Kumari and only son Master Rahul Kumar study in expensive private school in Patna whose expenditure may be extractracted as Rs. 150000 (One Lakh Fifty Thousand) including school fee, School Bus service charge etc. They reside in Patna in one of most expensive area of the city and it’s expenditure can be calculated.

2.8    That on calculation, the amount of money expended by Shri Raghwendra Kumar Singh & his wife Smt. Savita Devi Singh are even beyond Rs. 3,000,000 (Thirty Lakhs) specially in that particular year.

2.9    That, it becomes my duty as a patriot citizen of India to ask the authorities to verify the source of income and tax returns filed by her father Shri Raghwendra Kumar Singh & her mother Smt. Savita Devi Singh. It is submitted that Shri Raghwendra Kumar Singh is said to be a Teacher by profession and his wife Smt. Savita Devi Singh is a house wife. It’s a matter of great concern that from where Shri Raghwendra Kumar Singh & her wife Smt. Savita Devi Singh bought such huge sum of money for the said expenditure and carry other liabilities of family besides having other liabilities is a matter of investigation which your esteemed department has the jurisdiction to investigate.

2.10    That, Please investigate as to whether Shri Raghwendra Kumar Singh & his wife Smt. Savita Devi Singh ever shown such a huge amount as his/her/their income and paid taxes on the same (This income does not include only amount allegedly spend on marriage items but also amount spend on other liabilities of his family and invested/spend on the properties owned by them) and if they purchased the items of marriage from shops/showrooms after paying proper taxes for their purchase.

Ground for complaint

3.1     That Shri Raghwendra Kumar Singh & her wife Smt. Savita Devi Singh spent Rs. 3,000,000 (Thirty Lakhs only) as admitted by Sakshi Kumari in Financial Year 2016 – 17 (Assessment Year 2017 – 18). Hence, their Income Tax (IT) Return and source of fund of Rs. 3,000,000 (Thirty Lakhs) may be verified and Tax should be collected as per provision of Income Tax.

3.2    That on careful perusal of the Maintenance Case No. xxx/18 date xx/xx/2018 (Copy enclosed as A-1), PWDVA Case No. xx/2018 (Copy enclosed as A-2) petition & Attached Complaint letter of Mrs. Sakshi Kmari hints provision of Section 68, 69, 69(A), 69 (B), 69 (C) & 69 (D) under Income Tax Act 1961 are applicable on Shri Raghwendra Kumar Singh & his wife Smt. Savita Devi Singh.

3.3    That there may be other provisions of Income Tax which is best known to Honourable Income Tax authority.

3.4    That Section 68 IT Act 1961 details with cash credits proving identity of the creditor, capacity of the creditor, genuineness of the transaction are the important things this section. Sections 69, 69(A) & 69 (B) deals with unexplained investment, unexplained money & investment not fully disclosed in books of account. Section 69(C) deals with the unexplained expenditure, the important requirement of this section is that an expenditure has been found to have been incurred by an assesse in any financial year and the assess fails to indicate satisfactory source of such expenditure.

Prayers:

4.1    That It becomes my duty as a patriot citizen of India to ask the authorities to verify the source of income and tax returns filed by her parents Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh. In case, investigations are instituted through local authorities, it will be able to unearth huge revenue from Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh. A huge amount of tax (Public money) is supposed to be evaded and there might be a hub of black money lying with Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh, hence a large public interest is vested in it. Knowledge of such income is needed in public domain. It is therefore requested that necessary investigations may kindly be carried out against Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh in the interest of justice and requirement of law.

4.2     As per Income Tax Act, income source of Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh must be checked and recovery should be made from them against the expenditures they have claimed to made in the marriage of their daughter. The source of income of Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh should be verified from financial years 2012 – 2013 to till date and requested to share the Income Tax Return (ITR) filed by them to the applicant. The authority is under bounden duty to investigate the said information since it relates and its refusal may prejudice the applicant upon which a Maintenance Case & PWDV complaint are already been registered.

4.3     That in criminal jurisprudence, it is clear that innocent person should not be convicted and a person is presumed innocent unless found guilty/convicted.

Honorable justice S. N. Dhingra has also given a voice to my feelings in his judgement to Neera Singh Vs. The State (State Govt. of NCT of Delhi) and others — CRL M. C 7262/2006- 23.02.2007 as: “Now-a-days, exorbitant claims are made about the amount spent on marriage and other ceremonies and on dowry and gifts. In some cases claim is made of spending crores of rupees on dowry without disclosing the source of income and how funds flowed. I consider time has come that courts should insist upon disclosing sources of such funds and verification of income from tax returns.”

It is, therefore, requested that necessary Investigations may kindly be made against Shri. Raghwendra Kumar Singh & Smt. Savita Devi Singh in the interest of justice and requirements of law.

Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh may provide the details of money being spent as gifts received from the relatives, friends etc.

The flow of money should also be verified as there is every apprehension that they may provide false Information and cheat the Tax Authorities. As per Income Tax rules, the source of income of Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh must be checked and recovery should be made from them against the expenditures they made in the marriage of his daughter.

I would also like to request that the name of investigation officer be provided to me who will be looking at this matter, as there is every apprehension that the information provided to me will be misleading due to political pressure and bureaucratic contacts of Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh.

I request you to kindly take cognizance of my complaint and honour the aforesaid judgement to verify their expenditure and initiate action against Shri Raghwendra Kumar Singh & Smt. Savita Devi Singh as for tax evasion if any.

Encls: As per INDEX (Annexed)

                                       Your’s faithfully

                                                                                                          Warrior Kumar Singh

Copy to:

1. The Director General of Income Tax (Investigations)
   Income Tax Department, Deptt of Revenue.
   3rd Floor, A Center. E-2, Jhandewalan Extn.New Delhi- 110055 : for information and abrogation of this please.
   
2. The Member Investigation, CBDT, Department of Revenue,
   Ministry of Finance,North Block. New Delhi: 110001: for information and abrogation of this please.
3. The Director General of Income Tax (Inv.), 3rd Floor, C R Building, B C Patel Marg, Patna: 800001: for information and necessary action please.
   
4. Prime Minister Office (PMO), 152, South Block Raisina hill, New Delhi, Pin-110011 : for information and necessary action please.
   

INDEX

(Warrior Kumar Singh)

4.3    The sample format discussed in Para 4.2 is just a sample. It is advised to portray one’s own draft application on that basis as circumstances and differ from person to person.

[5] Follow up of TEP Application

5.1    After filing TEP, it is required to follow up the process of investigation as there are a chance of malpractice due to corruption. Hence, follow up process may be initiated by using RTI frequently with the Income Tax department to demand for certified copies of action taken etc.

5.2    Precaution to be taken care of before filing the RTI on TEP: Following should be considered while filing RTI on TEP –
(a) RTI application should be proper and short. Please visit RTI subject for details.

(b) Applicant should have provided grounds for disclosure of the said information by stating that the Truth and Justice are the superior most “Public Interest” subjects and the denial of information can hamper your liberty and Constitutional right under article 21 regarding Right to Live with Dignity.

(c) RTI application should be filed with multiple RTI with short demands of information.
(d) While asking information under RTI Act care should be taken as there is no need to ask income tax return. Instead ask for whether the income shown is below or above the one claimed in your FIR or CAW Cell complaint. Then it will be easier for them to reply as here you are not asking return, neither you are asking amount.

(e) Also do ask for how many times notices were sent, if one of the notice is not complied then it attracts penalties and so on.

5.3    How to get the output of TEP: Outcome of the TEP has to be disclosed as per the following decisions of the CIC:

http://www.rti.india.gov.in/cic_deci…17_M_54145.pdf

http://rti.india.gov.in/cic_decision…4032009-01.pdf

5.4    Step and Process of TEP –

(a) File TEP in Income Tax department
(b) Send RTI to find get status of TEP
(c) If any negative response of the RTI “The CPIO denied the information requested, citing Section 8(1)(j) and 8(1)(h) of the RTI Act, 2005 ” is made, prefer for First appeal.
(d) Prefer First Appeal to concern office.
(e) Ask the detail report in relevant case using CrPC 91 or witness summons
(g) Get the final report from the authority.

5.5    Problem with TEP:- (a) One major hurdle is the statutory limitation of TEP of 6 years.
(b) More than 6 years old, the department are allowed to not investigate apparently they carry the records only 6 years back – Hence filing TEP as soon as possible is best thing to do.
(c) IT Returns can be opened for 4 years, if the amount realizable is less than 1 Lakh
(d) IT Returns (an be opened for 6 years, if the amount realizable is more than 1 Lakh.

5.6    Different categories of TEP INVESTIGATION: The different categories of TEP Investigations are discussed below:
(a) Z/C- Categories – All the personal complaint are considered like TEP against 498A Family, this is slow and low priority (Amount from Rs. 1,000,000 – 5,000,000)
(b) Y/B- Categories – All the business men with huge turn over, this is medium priority (Amount above Rs. 5,000,000 and below Rs. 10,000,000).
(c) X/A- Categories – All major frauds, this has the highest priority (Amount beyond Rs. 10,000,000).

5.7    The judgments refer by Income tax authorities to reject information under RTI Act 2005: The Hon’ble Supreme Court in the case Girish Ramchandra Deshpande Vs. CIC dated October 3,2012 has held that the details disclosed by a person in his Income Tax Returns are “personal information” which stand exempted from disclosure u/s 8(1)(j) of the RTI Act unless a larger public interest is involved. In the instant case, the appellant has not been able to establish that the information sought for is for larger public interest. In fact, the appellant has sought this information on the ground that it was on the basis of his complaint that the IT authorities had ordered reassessment. In the light of the Supreme Court decision, the Commission concurs with the decision of the CPIO and Appellate Authority (Ref. (Civil) No. 27734 of 2012 (@ CC 14781/2012)

5.8    CIC judgment which should be attach with First Appeal: File No.CIC/DS/A/2011/003792/RM
“As the appellant has provided information relating to tax evasion, the CPIO is directed to inform the appellant as to whether the information provided by him was true or false and to disclose the broad outcome of the reassessment, without divulging specific details, once the process is completed.”

5.9    Where to complaint if Income Tax officer is not taking proper action on TEP: Anyone can can complaint to Vigilance department of Income Tax. Refer to below link for more detail http://www.incometaxindia.gov.in/vigilance/compl.html

5.10    Process followed after filing of TEP: Income tax department issue notice u/s 142(1) of income tax Act. The parties need to respond within one month otherwise there is a penalty of upto 10 000/- for disobeying notice. But no one cares as income tax officer never implement. The copy of the summon has a clause which reads as follows
“Without prejudice to the provisions of any other law for the time being in force, if you intentionally omit to so attend and give evidence or to produce the books of accounts and or documents a penalty for a sum which shall not be less than Rs.1000/- (Rupees one thousand) but which may extend to Rs. 10,000/- (Rupees ten thousand) for each default or failure shall be imposed upon you under section 272A(1)(e) of the Income-tax Act, 1961/37(2) of Wealth Tax act, 1957.”

If required ITO can issue summons u/s 131 of the Income Tax Act, 1961 wherein opposite party will be directed to present himself/herself before ITO

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