Inflating Contract Figures & Complaining That Tax Authorities Based Decision On Such Figures Amounts To Defrauding State In Two Ways: Karnataka HC

The Karnataka High Court stated that inflating contract figures and complaining that tax authorities have premised their decision on such figures, amounts to defrauding state. “Claiming higher contract amount by inflated figures and thereafter complaining that the Tax authorities have premised their decision on such figures, virtually amounts to defrauding the State, in two-ways. The Tax Consultant is and acts as an Agent of the assessee and if he had put forth the inflated figures, that is no ground for granting relief in the appeal. It is also not that the Tax Consultant would have been benefited by the inflated figures stated in the Return; obviously, it was the assessee who was the beneficiary.