All about TEP(Tax Evasion Petition)

Table of ContentsFAQ2DESCRIPTION OF TEP PROCESS:3FORMAT OF TEP COMPLAINT-5FORMAT OF RTI-8FORMAT OF FIRST APPEAL UNDER RTI ACT-9FURTHER GYAAN ON IT SECTIONS11Detail of 269ss & 269 t income tax11When you take a loan12When you repay a loan12The price you pay for a default12Provisions for genuine transactions13Bottom-line13

FAQ

What is TEP?Tax Evasion Petition or TEP is a complaint filed by any citizen against a person(s) who believes that such a person is doing illegal nonpayment or underpayment of income tax.What are the grounds for filling TEP?If you have FIR copy/DV copy/Bills of marriage expenses claimed by opposite party wherein they have mentioned huge amount (Beyond their capacity to spend). Bills of marriage expenses claimed by opposite party if you have any detail wherein they have mentioned larger amount (Beyond their capacity to spend).Better to have more and more information like their bank accounts/properties also.Where should I make a complaint?To The Chief Commissioner of Income Tax of your particular state with a copy to DGIT(Investigations) Income Tax Department. Secondly to Member Investigation, CBDT, Department of Revenue, Ministry of Finance, North Block. New Delhi. Example: - In case probable Tax evader resides in Chandigarh and complainant resides in Delhi. Complaint should be addressed to To the Chief commissioner of Income Tax-Chandigarh. We have seen cases where people file complaint in wrong state. Please be careful while filling. What is term Tax evader?Tax evader is the person who has not submitted required Income tax as per law. What are the documents should I submit along with TEP?In criminal matters TEP should be SUPPORTED WITH certified copies FIR or notices received from CAW and Complaint copy, certified Dowry list/Istridhan claiming larger amount is spent on the marriage by the complainant family, DV Petition copy, details of heavy expenditure claimed. Any other creditable document which disclose huge amount spent or earned by the complainant of the case for example any property transaction in recent past.Is it compulsory to have PAN numbers of probable tax evader?NO, you can file TEP without giving information of PAN number. It is duty of the investigating Agency to find PAN No from the person whose information asked for because the wards in the Income tax deptt are divided alphabetically. But make sure you provide the correct name and the complete address of the Tax evader.Is there any specific format to file TEP?There are many formats available in different helping websites and blogs. You can also modify as per your case. One such format which covers overall claims is part of this vary document.I had filled TEP 2-3 months before but I have not heard anything back from Income Tax department?TEP is a long process and patience is the key. But in any way if your RTI is properly filed You will get reply in 30 days But even then if you have not received any reply you have a right to file new RTI to the First Appellate i.e. Additional Commissioner Of Income Tax of the same city/state What is the process of RTI and what all questions should I ask?Its very important to understand that RTI is a toll which plays important role. RTI should ask only relevant questions. I.e. Detail of the IO assigned and action taken report against TEP. RTI should not have questions about personal information such as income tax return copy of the tax evader/PAN number of the tax evader etc. One such format of RTI is attached herewith.Never ask CPIO to give you the detailed copy of Income Tax Return But you can ask for the Return amount filed .Ask to verify the amount drawn during the year said to be in question. RTI should not have questions about personal information such as amount saved by the tax evader/PAN number of the tax evader etc. One such format of RTI is attached herewith. IMPORTANT STRATEGYAlways avoid taking all information through one RTI rather try to submit multiple RTIs in a period of one month with one or two question each .By this you will be able to harass the Tax evader multiple time and also you will facilitate the Investigating officer to earn extra m**ney from the Tax evader ;-) by which the opposite party comes under physiological pressure. I had filled RTI to get the information against TEP, But PIO has rejected the RTI stating article 8(1)(J) of RTI act 2005?It has been observed that some RTIs are being rejected with wrong reason. Here you should file first appeal as per RTI act 2005.What is the judgment reference Income tax authorities are using to reject information under RTI Act 2005?The Honble 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)Please share the CIC judgment which I should 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.Where can I complaint if Income Tax officer is not taking proper action on TEP? You can complaint to Vigilance department of Income Tax. Refer to below link for more detailhttp://www.incometaxindia.gov.in/vigilance/compl.html How can I show larger public interest in my RTI against TEP?Firstly, Tax Evasion is a crime and the knowledge is needed in public domain. (Itis different than asking IT Returns). Secondly the information is required to prove innocence of few people (More than ONE)DESCRIPTION OF TEP PROCESS:

1. You file TEP2. They do nothing3. You File RTI4. They 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 inforce, if you intentionally omit to so attend and give evidence or to producethe books of accounts and or documents a penalty for a sum which shall not beless 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 youunder section 272A(1)(e) of the Income-tax Act, 1961/37(2) of Wealth Tax act,1957."5. ITO sends Inspector to parties residence for enquiry. He will prepare an enquiry report and hand it over to Income Tax officer (ITO). Most probably, some settlement reached with the inspector, ITO and parties.6. They reject your RTI u/s section 8 and 11.7. You file Appeal u/s 19(1) openly putting allegation that ITO is notinterested in recovering Govt. Money. Also files on complaint to ChiefIncome Tax Officer.8. That makes ITO tense and he again try to share his problem with partiesand again some vague answer comes.9. You must file a complaint to M/o finance with copy to all officers sayingthat Huge Govt money is evaded in tax as ITO is not interesting in making nationgrow etc....... keeping all other in loop.10. Then again file RTI with remaining questions.11. If required ITO can issue summons u/s 131 of the Income Tax Act, 1961 wherein opposite party will be directedto present himself/herself before ITO

This is the only way then ITO may come up with some information. You have to try hard. As the same procedure were adopted by seniors and got quite enough information in parts and now using that to screw opposite party which exposes theremisconduct.FORMAT OF TEP COMPLAINT-

To,Date: XXXXThe Chief Commissioner of Income TaxC.R BuildingI.P Estate. New Delhi -110002

SUBJECT: -Tax Evasion Petitionfor investigation into source of income and tax liabilities of Mr.FIL and Mrs.MIL both R/o. Honorable Sir/Madam,This is a tax evasion complaint against Mr.FIL and Mrs.MIL R/o:.PAN No. of Mr.FIL: XXXXX

PAN No.of Mrs.MIL: XXXXX

I Your Name, S/O XX R/o XXXXwish to bring to your kind notice the following points:I got married toMrs.498a D/oMr.FILR/oonXXXX according to Hindu Rites in presence of caste elders. My wife Mrs.498a has framed a false dowry complaint under section 498a/406/34 of IPC against me and my relatives in PS XXXX New Delhi underFIR no. : (Certified copy attached as Annexure A). It has been claimed by Mrs.498a in her own admission that Mr.FIL & his wife Mrs.MIL has spent over Rs XX Lakhs (XX Lakhs) in her marriage ceremony and other articles/cash in Nov, 2011 (in financial year XXX)Along with her complaint she has also submitted her Istridhan List dated XXXXX (Certified copy attached as Annexure B) stating that along with Istridhan her parents had givenapprox. 23 Tola gold and hefty amounts in cash/gifts to me and my relatives in the ceremonies. She has duly signed the list and submitted it beforeCAW Cell.She has further mentioned in the FIR that Mr.FIL and Mrs.MIL has givenRs XX Lakh (XXXX Lakhs) and XXX Lakh (XXXX Lakh)cash to me in the financial year of 2008-2009 and 2010-2011 respectively.The copy of complaint no.XXXX submitted by 498a on XXXX at CAW Cell (Copy Attached as Annexure C) which was converted into FIR XXXX is also attached.Beyond the same Mr. FIL is the lawful owner of ahouse measuring 100 Sq Yard in New Delhi(XXXXX) and it is common knowledge that he owns 3-4 other houses in the name of his wife Mrs.MIL and few otherBenamiproperties. It has been averred many a times that they also owns 2-3 lockers in various banks, had multiple savings accounts in SBI/ING Vysa and in other banks and has Fixed Deposits worth many lakhs.As per the information, Mr.FIL and Mrs.MIL have some unknown source of income. The example of which is that their daughter(Mrs.498a) has allegedly given items of heavy cost as dowry to me (Copy Attached as Annexure B) in her own admission in writing to CAW Cell,New Delhi in marriage and after the marriage with me.Publicly known only source of income for Mr.FIL is through his employment in the capacity of a Post in XXXX and Mrs.MILs income is NIL. From where they brought such huge sum of money for said dowry and has carried other liabilities of the family besides having properties is a matter of investigation which your esteemed department has the jurisdiction to investigate. Please investigate as to whether Mr.FIL and Mrs.MIL has ever shown such a huge amount as their income and paid taxes on the same (This income include only amount allegedly spent on dowry items/marriage and doesnt contain amount spent on other liabilities of his family and invested/spent on the properties owned by them) and if they had purchased the items of dowry from proper shops/showrooms after paying proper taxes for their purchase.TheHonorable High CourtofDelhiin the Case ofNeera Singh Vs. The State(State Govt. of NCT of Delhi) & Others CRL.M.C.7262/ 2006 23.02.2007) (Copy Attached as Annexure D) has given ruling for such investigations in matters involving huge dowry amounts.Further careful perusal of the FIR & Attached Complaint letter of Smt 498a hints provision of section 68, 69,69A, 69B, 69C & 69D under Income Tax Act of 1961 are applicable on Mr.FIL and Mrs.MIL as far as in my knowledge. However, there may be many other provisions of income tax which is best known to Honorable Income tax authority.

The section 68 deals with cash credits proving identity of the creditor, capacity of the creditor, genuineness of the transaction are the important things of this section. Section 69 & 69A, B deals with unexplained investment, unexplained money & investment not fully disclosed in books of accounts.

The Section 69C 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.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 Mr.FIL and Mrs.MIL. In case investigations are instituted through local authorities, it will be able to unearth huge revenue from Mr.FIL and Mrs.MIL. It is therefore requested that necessary investigations may kindly be made against Mr.FIL and Mrs.MIL in the interest of justice and requirement of law. As per Income tax rules, income source of Mr.FIL and Mrs.MIL must be checked and recovery should be made from them against the expenditures they have claimed to made in the marriage of their daughter. Mr.FIL and Mrs.MILs income and source of fund should be verified from financial years XXXX to till date and share the tax return copies with me. The authority is under bounden duty to investigate the said information since it relates and its refusal may prejudice the appellant upon which an FIR has been registered. Since criminal jurisprudence, it is clear that innocent person should not be convicted and a person is presumed innocent unless found guilty/convicted. I request you to kindly take cognizance of my complaint and honor the aforesaid Judgment to verify their expenditure and initiate action against Mr.FIL and Mrs.MIL for tax evasion if any.

There is also an apprehension that Mr.FIL and Mrs.MIL may provide false Information to Tax Authorities. So, I would also like to request that the name of investigating officer be provided to me whowill be looking at this matter, as there is every apprehension that the information provided to me will be misleading due to political pressure and beauraucratic contacts of Mr.FIL and Mrs.MIL.I may be given the due prize money as per income tax guidelines for revealing this to the authorities.Thanking you.Enclosures :-1. FIR:XXXX PS XXXX2. Complaint no.XXXX at CAW Cell, New Delhi3. Istridhan List dated XXXX submitted at CAW Cell, New Delhi.4. Judgement of the Honorable High CourtofDelhiin the case of Neera Singh Vs. The StateYours truly

(XXXX)Copy to:1. DGIT(Investigations)Income Tax Department. Deptt of Revenue. 3rdFloor,A Center. E-2,Jhandewalan Extn.New Delhi- 55.

2. Member Investigation, CBDT, Department of Revenue, Ministry of Finance,North Block. New Delhi

FORMAT OF RTI-

To,Date: CHIEF COMMISSIONER OF INCOME-TAX, DELHI-I ADMINISTRATION DEPUTY COMMISSIONER (HQRS-ADMN)ROOM NO.354, CENTRAL REVENUES BUILDINGI.P. ESTATE, NEW DELHI-110 002

Name of the applicant: S/o Mr.

Residence address:

Detail of payment of filing fees: Initial fee of Rs. 10/- in the way of Postal Order of Rs 10/- bearing serial number XXXX has been enclosed along with the application as prescribed under Right to Information Act /Rules 2005. Undersigned is ready to pay processing fee (if any) required to furnish said information.I am not aware of the payee details. So, kindly fill appropriate details in IPO #XXXX worth Rs 10 /-(Rs Ten only) as it is the duty of PIO to provide reasonable assistance under 5 (3) of the RTI act to applicant.

Undersigned has submitted a complaint/tax evasion petition on dated: XXXX in the office of CIT (Commissioner of Income Tax) Income Tax Department, New Delhi (Attached as Annexure-A). Tracking detail of Speed Post is also attached as Annexure-B

Particulars of information required under RTI Act 2005 are as follows:1. Please provide Investigation officers name, Designation, employee ID and contact number against above tax evasion petition.2. Please provide action taken report on above tax evasion petitionIn case the information is held by or related to another public authority, the application or such part of it as may be appropriate may be transferred to that other public authority under intimation to the undersigned as per Section 6(3) of RTI Act.If you cannot give the whole information demanded by me, please give a part of the information which canbe given according to section10 the RTI Act 2005. Section 10 of the Act allows those part(s) of the record which are not exempt from disclosure andwhich canreasonably be severed from parts containing exempt information to be provided.Further it is requested that the applicant (a citizen of India) would like to receive the above said information by post on the address mentioned below, within 30days (thirty days). As prescribed under the Right of Information rule /Act. Kindly arrange to provide above information by speed/registered post at below mentioned address.Thanking you,Yours truly

Name:Address:

FORMAT OF FIRST APPEAL UNDER RTI ACT-

The Right to Information Act, 2005First Appeal for State Government PIODate: To, The First Appellate Authority under RTI Act Addl. Commissioner of Income Tax

Sir/Madam, As I am aggrieved by decision of Public Information Officer, I hereby file this appeal for your kind decision. 1. Details of appellant 1.1 Full Name: S/o 1.2. Full Address: 1.3 Phone/Cell No.: 2. Details of Central/State Public Information Officer (CPIO/SPIO): 2.1 Designation: Income Tax Officer/CPIO2.2 Full Address: 2.3 Name of Public Authority: 3. Details of RTI application to CPIO/SPIO: Date of Application: Mailed on: by Speed post No. Date of receipt by CPIO/SPIO: 4. Particulars of payment of filing fee: Paid Rs.10/- by IPO No.XXXX 5. Details of information sought: Applicant has filled a TEP and in RTI he has asked for the below points-1. Please provide Investigation officers name, Designation, employee ID and contact number against above tax evasion petition.2. Please provide action taken report on concerned tax evasion petition.6. Particulars of Decision of CPIO/SPIO: Letter reference No: Date of CPIO/SPIOs Decision: Date of receipt of decision by the appellant: 7. Brief facts of the case: Applicant has requested information about Investigation officer to whom TEP is assigned and action taken report. Applicant has not asked for any third party or personal information. Appeal is for complete application8. Reasons/grounds for this appeal: PIO has rejected information stating u/s 8(1)(j) of RTI Act,2005.However applicant has not asked for any personal or third party information. As per income tax guidelines applicant is entitled for prize money also for revealing this information to the authorities. Hence he is very concerned for the progress made in this regard. Also action is required in the interest of justice. Ref. File No.CIC/DS/A/2011/003792/RM9. Prayer/relief sought for: Applicant request first appellate authority to provide information ASAP.11. Grounds for prayer/relief sought for: PIO has rejected information wrongly.10. Personal Presence at hearing: YES / NO: YES11. Enclosures: Photocopies of original RTI application and speed post 12. Declaration: I hereby state that the information and particulars given above are true to the best of my knowledge and belief. Place: New DelhiDate:

Name:Address:FURTHER GYAAN ON IT SECTIONS

Detail of 269ss & 269 t income taxGround of Complaint Cheques and Balances Payments of Rs 20,000 or more must be by cheque; pay in cash and you could be in big trouble.THE INCOME TAX ACT is not just an instrument with provisions for the levy and collection of tax. There are penalties involved, like in the case of loans and deposits above a certain amount that are taken or repaid in cash. This was because the taxman found that during raids, assessees often explained away unaccounted-for income as loans taken or deposits made with various people. Some tax defaulters have been known to introduce unaccounted-for income in their books of account using benami names for loans and deposits. To counter this, the taxman introduced Section 269SS through Finance Act 1984.

When you take a loanEffective 30 June 1984, Section 269SS debars taxpayers from taking or accepting loans or deposits from any person otherwise than by way of an account payee cheque or account payee bank draft if the amount of either the loan or the deposit or the aggregate amount of the loan and deposit is Rs 20,000 or more. The exception: where the giver and the taker earn income only from agricultural activities and neither has any income chargeable to tax.Its important here to understand the subtle distinction between a deposit and a loan. Its true that in both cases, a debtor-creditor relationship exists between the person giving the money and the one receiving it. In the case of a deposit, however, a person deposits money for his own benefit, and earns interest from the party accepting the deposit. In the case of a loan, however, it is the borrower who needs the money, and so the lender may stand to gain in terms of interest on the loan that has been advanced.

When you repay a loanThis brings us to Section 269T that has been in effect since 11 July 1981. No banking company, co-operative bank, co-operative society, firm, person or any other company can repay a loan or deposit otherwise than by way of an account payee cheque or account payee bank draft drawn in favour of the person who has made the loan or deposit if the amount of the loan or deposit, along with the interest payable, is Rs 20,000 or more. This provision also applies where the aggregate amount of the loan or deposit, along with the interest payable, held by a person individually or jointly on the date of the repayment is together Rs 20,000 or more.The exception: Section 269T provisions are not violated where a banking company or a co-operative bank credits the amount of the loan or deposit to the savings or current bank account of the person to whom the loan or deposit is to be repaid.

Exceptions to the rule The provisions do not apply in the case of loans/deposits taken or accepted by, or in the case of repayment of loans or deposits otherwise than by way of an account payee cheque or account payee bank draft to: The government; Any banking company, post office saving bank or co-operative bank; Any corporation established by a Central, State or Provincial Act; Any government company as defined under Section 617 of the Companies Act, 1956; Any institution, association or body notified by the central government in the Official Gazette.

The price you pay for a defaultUnder section 271D and 271E, the Joint Commissioner of Income Tax can impose a penalty equal to the amount of the loan or deposit taken or accepted in contravention of the provisions of Section 269SS, or the amount of loan or deposit repaid in contravention of the provisions of Section 269T. For example, if a person takes a loan of Rs 40,000 in cash from his brother, he will be liable for a penalty of an equivalent amount. Similarly, an additional penalty of Rs 40,000 will be levied if the loan is also repaid in cash. The penalty for repayment in cash is independent of whether the loan was taken in cash.

Provisions for genuine transactionsThe Income Tax Act makes exceptions where a person takes or repays a loan or deposit in cash for a reasonable cause. And so, the income tax authorities do not impose a penalty if it is proved to their satisfaction that a person had a genuine reason for not abiding by the requirements of the law and borrowing or repaying a loan in cash, instead of transacting through the cheques. For example, lets say a family member suddenly falls ill and has to be rushed to hospital in the middle of the night. There, the hospital authorities refuse to admit the patient without an upfront payment of Rs 40,000. For lack of sufficient options, it may then be necessary to borrow an amount in excess of Rs 20,000 in cash to make the payment. This can be said to be a genuine case where a person is prevented by a reasonable cause to accept a loan by cheque.

The Hyderabad Tribunal too has ruled that Section 269SS has been introduced to curb the practice of explaining away unaccounted-for money; the provisions are not applicable to transactions that are conducted in an open and genuine manner and where no unaccounted-for money is involved. If a transaction is genuine, then a mere technical breach of the provisions should not attract a penalty. The provisions, the Tribunal held, have been introduced to deal with cases involving evasion of tax. The legislative intent of curbing tax evasion does not mean that all loans or deposits are hit, but only those that are used by tax defaulters to cover up unexplained cash or unaccounted-for deposits. The Sections, according to the Tribunal, are definitely not intended to penalize genuine transactions, where no tax evasion is involved.

In another case, a building contractor was liable to be penalized for accepting and repaying loans/deposits from two lenders in cash. The genuineness of the transactions, however, was never in doubt, since the loans were accepted and repaid in cash due to discounting of the cheques, as also dishonoring of the cheques issued by the builder. The builder, as well as the lenders (from whom the cheques were discounted by the builder and to whom the payments were made in cash due to the fact that the builders repayment cheques were dishonored), were also regular income tax assesses. Therefore, the transactions were deemed bona fide and genuine and no penalties were levied under Sections 271D and 271E for contravention of Sections 269SS and 269T.

Bottom-lineThe income tax department doesnt hesitate to levy a penalty for any violation of the provisions of the Income Tax Act. As a taxpayer, you are, therefore, advised to accept loans of Rs 20,000 or more only by cheques and repay them too only by cheques. Unless, of course, you have no choice but to opt for cash transactions. If that happens, make sure you have enough reasonable cause to do so, and the transaction is duly accounted for;

YOU HAVE THE ABILITY TO TURN THE TABLE UPSIDE DOWN, JUST MAKE A WISH AND WORKHARD REAL HARD. HE LISTENS ....HE GIVES JUSTICE.....BUT YOU HAVE TO ACT..

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