HYDERABAD: In the third case of its kind to emerge from recent income tax department investigations into questionable foreign remittances, police in Andhra Pradesh have booked a chartered accountant (CA) and operators of seven firms for allegedly facilitating the illegal transfer of Rs 186 crore abroad between 2022-23 and 2026-27 using false Form 15CB certifications and bypassing mandatory tax scrutiny.The latest FIR follows two similar cases registered earlier in Hyderabad central crime station and Cyberabad economic offences wing after coordinated I-T searches in Telangana and Andhra Pradesh uncovered suspected irregularities in outward foreign remittances.The latest case was registered on Aug 22 based on a complaint filed by Subhash Koritepati, assistant director of I-T (investigation), unit-IV(2), Vijayawada. Arundalpet police in Guntur booked CA Chinna Venkata Subramanyam Dama and others under relevant provisions of the Bharatiya Nyaya Sanhita on allegations of cheating, issuing false certificates and using certificates known to be false.The seven entities named in the FIR are Visno Software Creations and Technology, Vijuwal Secure IT Creations and Technology, Unic IT Services and Technologies, Skavenger Shipping and Logistics Private Limited, Pratyagra Shipping and Logistics, Trailokya Solutions, and an entity linked to Sai Kumar Nemala.According to the I-T department, Form 15CB certificates issued by the accused enabled the entities to secure bank clearances for foreign remittances aggregating Rs 186 crore.The case stems from a search conducted by the directorate of investigation, I-T department, Hyderabad, on Aug 18 at Dama’s office in Guntur under section 247 of the I-T Act.According to the complaint, investigators found that Dama had allegedly facilitated outward foreign remittances by issuing Form 15CB certificates to entities that were subsequently found to be non-existent at their registered addresses.Physical verification conducted by the assistant director of I-T (investigation), foreign asset investigation unit-2, Hyderabad, reportedly revealed that the remitting entities had not filed I-returns despite routing substantial sums abroad.Form 15CB is a tax determination certificate issued by a CA certifying the taxability of foreign remittances, the applicable tax deducted at source rate and compliance with provisions of the I-T Act and double taxation avoidance agreements. The certificate is a key requirement for banks to process certain overseas remittances.Under Rule 37BB of the I-T Rules, Form 15CB certification requires a CA to examine agreements, books of account and transaction records, determine the nature of remittances and verify applicable tax withholding requirements before certifying compliance.Investigators alleged that Dama issued certifications without examining the underlying records required under law. The complaint states that, in his recorded statement, the CA admitted to issuing certifications without verifying supporting books of account or agreements.The complaint further alleged that the CA and operators of the entities acted in collusion to bypass statutory due diligence requirements, facilitating the alleged wrongful outflow of foreign exchange and raising concerns over the misuse of compliance mechanisms governing overseas remittances.
