Bogus refund claims.

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....oup of companies/concerns. It was also seen that some concerns failed to deposit the TDS within the statutory period. A study of the case by the Inspection Division has revealed the following:- It is possible to claim refund on the basis of bogus certificates because there is no proper check as to whether any assessee responsible for paying interest has actually deducted the tax at source u/s.1....

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.... been deducted and specifying the amount so deducted and the rate at which tax has been deducted, and such other particulars as prescribed under Rule 37. A person making deduction of tax in accordance with sec.194A from income by way of interest is also required under rule 37(2A) to send to the I.T.O. having jurisdiction to assess him a statement in Form No.26A quarterly(on July 15, October 15, Ja....

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....e not checked at all. Registers are not generally maintained for such return and even if maintained the entries are not at all made therein. In some circles, one common register is maintained for all the wards. As such the assessing ITOs do not even care to see the register. It was also seen that details of creditors, to whom interest is either paid/payable are not obtained and their accounts are ....