Egg vendor gets Rs 50 crore tax notice due to fraudulent use of PAN, Aadhar

A man who sells eggs on the streets of Madhya Pradesh was left shocked when he received an income tax notice demanding transaction details for Rs 50 crore. Reports suggest that fraudsters used his documents to steal his identity and run a company in Delhi. ETV Bharat reported that the man, Prince Suman, lives in Pathariya’s Ward 14 and knew nothing about a company being run in his name.

He got an Income Tax notice under Section 133 (6) of the Income Tax Act, 1961 on March 20. It said that he had carried out financial transactions worth Rs 49.24 crore during FY 2022-23 and should submit his ITR filings, bank statements, and purchase bills. He was told that he owed the government Rs 6 crore as Goods and Services Tax (GST).

The egg vendor panicked to see such a huge transaction carried out in his name and rushed to lawyers and government offices. An income tax lawyer told him that a company named ‘Prince Enterprise’ had been registered in Delhi on December 7, 2022, using his PAN card and Aadhaar details. It dealt with leather, wood and iron trading.

Add WION as a Preferred Source

Also Read: ED raids Noida couple running adult webcam streaming, shooting adult videos for porn sites

"I only sell eggs on a cart. I have never been to Delhi, let alone start a company there," the man said.

The company also got a GST number and carried out transactions worth crores. The fraudsters shut it down later. Prince is now running from pillar to post to get the issue resolved and clear his name in the matter. He has submitted complaints to the Pathariya police station, the Superintendent of Police in Damoh, Cyber Cell, GST Officer, and Income Tax Officers in Damoh and Narsinghpur.

Juice vendor gets Rs 7.5 crore GST notice

In a similar case, a juice vendor in Uttar Pradesh's Aligarh received an I-T notice of over Rs 7.5 crore. Md Rahees was shocked to see the notice and later found out that "bogus" transactions worth crores had been carried out in his name in 2020-21. He was told that he owed the government Rs 7,79,02,457 GST.

He approached the IT authorities who asked him if he had shared his personal details with anyone. Md Rahees told them that he had never given out his details to anyone. A preliminary probe found that Rahees's personal documents used for donating crores of rupees for the 2022 Punjab assembly elections.