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Information and evidences, as available on record with the Income Tax Department, showed that Mr. Bharat Bomb, the assessee, had involved in taking fraudulent and fake transactions in the three branches of Syndicate Bank namely Jaipur Malviya Nagar, Jaipur M.I. Road and Udaipur branches, totaling to Rs. 1000.63 crores. The fraud was done over a period of more than four years and it is estimated that 157 accounts were used and defrauded the Bank by resorting to Discount of Fake cheques, discount of fake inland bills and arranging overdraft limits against nonexistent LIC policies. These fraudulent transactions were done deliberately and with dishonest intention to Pradeep Nimwat siphon off the funds of the Bank for illegal personal gains. The amount has been remitted to accounts maintained at Union Bank of India, Sukhadia Circle Branch, Fatehpura Branch and Udaipur Main Branch. Apart from this, remittances have gone to other 29 banks covering various branches to places like Agra, Indore, Kolkata, Mumbai, Bangalore, etc..Records showed that the Total Income declaredby the assessee for the assessment year 2013-14, through return ofincome filed on 26/03/2014, was Rs.8,11,450/-.This does notcommensurate with the huge amount transactions carried out by theassessee. The assessee has not submitted explanation regardingtransactions, deposits and credits in various bank account in the Syndicatebank and, therefore notice u/s 148 was issued to on 13.04.2021. In view ofthe Hon'ble Supreme Court order dated 04/05/2022, in Civil AppealNo.3005/2022 in the case Union of India &Ors. Vs Ashish Agarwal and inview of instruction no 01/2022 dated 11thMay, 2022 issued by CBDT, NewDelhi incompliance to the judgment of the Hon'ble Supreme Court, showcause notice u/s 148A(b) was issued to the assessee on 23/05/2022. Anorder u/s 148A(d) was passed, wherein explaining the facts of the case on30/06/2022. Subsequently, notice u/s 148 was issued on the same date.

3. The assessee, Mr. Bharat Bomb, had involved in taking fraudulent andfake transactions in the three branches of Syndicate Bank namely JaipurMalviya Nagar, Jaipur M.I. Road and Udaipur branches, totaling to Rs.1000.63 crores. The fraud was done over a period of more than four yearsand it is estimated that 157 accounts were used and defrauded the Bankby resorting to Discount of Fake cheques, discount of fake inland bills andarranging overdraft limits against non-existent LIC policies. Thesefraudulent transactions were done deliberately and with dishonest intentionto siphon off the funds of the Bank for illegal personal gains. The amounthas been remitted to accounts maintained at Union Bank of India,Sukhadia Circle Branch, Fatehpura Branch and Udaipur Main Branch.Apart from this, remittances have gone to other 29 banks covering variousbranches to places like Agra, Indore, Kolkata, Mumbai, Bangalore, etc..Records showed that the Total Income declared by the assessee for theassessment year 2013-14, through return of income filed on 26/03/2014,was Rs.8,11,450/-. This does not commensurate with the huge amounttransactions carried out by the assessee. The assessee has not submittedexplanation regarding transactions, deposits and credits in various bankaccount in the Syndicate bank.

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Pradeep Nimwat

5. During initial verification carried out by the Income Tax Department,statements were recorded from the assessee and were placed on record.n perusal of the statement u/s 131 of the I.T. Act, 1961, recorded on13.3.2019, it is noticed that, in question No. 7 the assessee was askedhow assessee and others have done the fraud with Syndicate Bank. In thereply the assessee stated that the assessee and others had defrauded theBank by resorting to Discount of Fake cheques, discount of fake inlandbills and arranging overdraft limits against non-existent LIC policies.Further in question No. 9, the assessee was asked about the bankstatements of the 10 persons and about the transactions in their bankaccounts. In the reply assessee admitted that all the 10 people wererelatives and employees and that the assessee have fraudulently usedtheir documents and account to obtain loan from Syndicate Bank. Further,it was also admitted that from the financial year 2011-12 to the financialyear 2015-16 all the financial transactions were done by the assessee andonly assessee himself is accountable for those transactions and is readyto accept accountability of those transactions. Further, in question No. 11and 12 the assessee was asked about the use of the amount obtained by loan. In the reply the assessee has stated that he had used those amount obtained by fraud loans in settling the old small term loans. The assessee has further stated that there is no loan outstanding against the 10 names asked in question No. 9 and all fraud loans were settled accordingly. It was further noticed that the assessee had filed return of income u/s 139(4) for the assessment year 2013-2014 on 26/03/204, by declaring total income of Rs.8,11,450/-. The income declared comprised income from house property, income from business and income from other sources. Income from house property was declared by the assessee by not disclosing the details or addresses of the properties that were let out, although the return has a provision for entering such details. Business income part of the return has no details of any business transactions, rather Rs.5,57,440/- was shown as gross profit and as net profit. The assessee has accepted that he has done fraud with Syndicate Bank and assessee himself had taken all the accountability and responsibility for the fraud done with Syndicate Bank.

6. As per data available on record, as disseminated and informed by thebank authorities through various avenues showed that the assessee hadindulged in fraudulent transactions by way of discounting fake cheques,discounting fake bills, creating overdrafts against non-

Pradeep Nimwat existent LIC policies etc. during financial years extending from 2011-2 to 2016-17 and the totalof such transactions amounted to Rs.1000,63,24,000/- (approximately Rs1000.63 crores). The year under verification through notice issued u/s 148on 30/06/2022 is for the assessment year 2013-14, representing thefinancial year 2012-13. The data and information available on record havebeen verified and the break-up of details shows that there had beentransactions by way of creating overdrafts against non-existing LIC policiesin the name of customers and generating income through receipts/credits.