Potter earning Rs 95,000 per year gets I-T notice for Rs 13.55 cr deal

A potter in Rajasthan with an annual income of Rs 95,000 was left utterly dumbfounded after he received two back-to-back income tax notices last month for business transactions worth Rs 13.55 crore in the 2020-21 fiscal.

It was later revealed that Vishnu Kumar Prajapat (32), a resident of Jhaliji Ka Barana in Bundi district, had possibly been a victim of identity theft. A case of cheating was registered by the police on Wednesday, 16 April.

According to police, the potter's PAN and Aadhar details were allegedly misused by a Mumbai-based firm to evade the tax scanner for two business transactions.

Prajapat received the first notice on 11 March through email and speed post, saying no I-T return was filed for the transaction of over Rs 10.61 crore in FY 2020-21. He was directed to file a reply by 19 March.

He immediately rushed to the local police station. From there, he was referred to the cyber police station in Bundi but there, too, nobody listened to his complaint, Prajapat claimed.

The potter then took the help of a chartered accountant who, after making a few enquiries, discovered that his Aadhaar, PAN and other document details were “misused” for GST registration of a Mumbai-based firm owned by an individual. It was also revealed that the firm executed two business deals, one of Rs 10.61 crore and another of Rs 2.83 crore, using the potter's details.

Armed with the information, Prajapat, on 23 March, visited the office of Bundi superintendent of police, where ASP Uma Sharma heard his grievances, took his complaint and sent it to the cyber police station for a probe.

Meanwhile, Prajapat received another I-T notice on 30 March, this time for a financial transaction of Rs 2.83 crore in the same financial year.

“Two police personnel visited my home on Wednesday and assured me that I will not be wronged,” said the potter, an Arts graduate. He told PTI that he earns only around Rs 95,000 each year by selling clay pots, his paternal business.

A case under IPC section 420 (cheating) was registered at the Gendoli police station on Wednesday night and further investigation was underway, said assistant sub-inspector Mukhendrapal Singh.

The police official denied charges of a delay in initiating the probe into the matter, saying the complaint was received just a few days ago and investigation into it disclosed fraud and tax theft.

Prajapat had earlier submitted his documents to a private firm in Bundi, seeking work as a daily wager and it was likely that his personal details were leaked from there, Singh added.