MEERUT– Residents of the Delhi Chungi area were startled early on July 14 when more than a dozen Income Tax officers arrived unannounced at the house of Chartered Accountant Nikhil Gupta. Over the next 30 hours, officials searched the premises, combing through financial documents, digital files, computers, and bank lockers. The operation, which ended around noon on July 15, extended to locations in Meerut and Delhi and included CA Yashika Gupta and CS Priyam Gupta—both related to Nikhil. The Income Tax Department had its eyes on Gupta after a red flag was raised: his firm had filed over 2,000 income tax returns in a single year—an unusually high number—many of which allegedly involved inflated or bogus claims under sections like 80C (tuition fees), 80D (medical insurance), and 80GGC (political donations).
How the Refund Game Was Played
According to sources in the department, the scam operated through manipulation of Form 24, which was used to inflate deductions and claim excessive refunds—sometimes up to 70% of the actual tax amount. Officers suspect that fabricated documents, forged receipts, and shell entities were created to back these claims. Clients may have been lured with promises of large refunds, unknowingly participating in the fraud. The total value of potential fake refunds and misused tax claims is still being calculated, but authorities expect it to run into several crores. A large chunk of data has been seized, including ₹1.5 crore worth of fixed deposits, and will be analyzed in the coming weeks.
Nationwide Pattern: Meerut Part of a Larger Crackdown
Meerut is not alone. This raid is part of a wider operation launched across India. On the same day, over 200 other locations in cities like Noida, Ghaziabad, Varanasi, and Sultanpur were raided. The Income Tax Department believes a widespread racket was in place, where intermediaries and professionals were helping individuals claim refunds based on false deductions. These deceptive claims are not just limited to salaried taxpayers but also involve high-net-worth individuals, small business owners, and even students.
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CAs Fight Back, ICAI Claims Harassment
The Meerut branch of the Institute of Chartered Accountants of India (ICAI) came out strongly in support of Nikhil Gupta. Dozens of CAs protested the raid, saying that it was “an act of harassment” and that tax professionals are being unfairly blamed for their clients’ claims. They argue that it is the responsibility of the Income Tax Department to verify refund eligibility and that professionals are merely facilitators of the process. ICAI officials have asked for a formal inquiry into the conduct of the raiding officers and called for safeguards against such “targeted actions.” Meanwhile, the Income Tax Department maintains it has acted within the law and based on data-led investigation.