HC Granted Bail to Applicant in ITC Fraud Case Due to Lack of Evidence of Monetary Benefit

Case Details: Mohd. Rashid Siddiqui v. State of U.P. - [2023] 151 taxmann.com 284 (Allahabad)

Judiciary and Counsel Details

• • Rajeev Singh, J.
  • Vijayendra Prakash Tripathi & Amrendra Nath Tripathi for the Applicant.
  • G.A., Rajesh Kumar & Rohit Kumar Tripathi for the Respondent.

Facts of the Case

In the instant case, the applicant filed bail application and submitted that he had been falsely implicated. It was submitted that a tax professional misused user I.D. and password of applicant and raised fabricated input tax credit.

High Court Held

The Honorable High Court noted that during course of investigation, only Rs.1.12 lakh were found in account of wife of applicant which were credited by the main accused. It was observed that there was no evidence that applicant obtained any monetary benefit from firms as well as in false tax claim except aforesaid transaction.

Further, during course of investigation, the main accused had categorically stated that he was actively associated with CA and had done all alleged mischief related to input tax credit. In such circumstances, the Court held that the applicant was to be released on bail subject to certain conditions.