IT Dept Raids Meerut CA for Fake Tax Deductions, Shell Firms

Income Tax Department Raids Meerut CA for Alleged Tax Fraud

On Monday, July 14, 2025, the Income Tax Department launched a major raid on the residence and office of Chartered Accountant Nikhil Gupta in Meerut’s Delhi Chungi area. The operation also targeted his brother, Company Secretary Priyam Gupta, and Priyam’s wife, CA Yashika Gupta.

Early Morning Action by Authorities

The coordinated raid began around 6 AM, with officials arriving in a convoy of eight vehicles from Meerut, Noida, and Ghaziabad. They carried out a detailed search of the premises, examining financial records, computers, laptops, and digital devices.

Fake Deductions Under the Scanner

Authorities suspect that the professionals were involved in filing income tax returns containing fraudulent deductions, including false claims for medical bills, school fees, and political donations. These bogus deductions could have led to large tax refunds for clients, triggering the investigation.

Suspicious Room and Staff Questioning

One room in the premises was found locked and was thoroughly examined by the officials. Staff members were also questioned during the raid to gather more information about the scale and operation of the alleged malpractice.

Allegations of Shell Companies

Initial findings suggest the use of shell companies to manipulate financial statements and route fake transactions. This could point to a deeper web of financial misreporting involving more individuals and entities.

Association Raises Concerns Over Raid Procedure

Following the raids, the Chartered Accountants Association expressed concern over what it called the “harsh” nature of the operation. They alleged harassment and demanded a formal review of how such actions are carried out. The Income Tax Department, however, maintained that all steps were taken in compliance with legal protocols and due process.

Part of a Larger Crackdown

This action is part of a nationwide campaign to curb tax evasion through fake deductions, with similar operations taking place at over 200 locations across India. The department is focusing on professionals and networks that enable such practices under the guise of legal filings.

Ongoing Investigation and Future Action

The investigation is still underway, and the authorities are analyzing seized data to trace the complete extent of the fraud. Further actions, including possible arrests and financial penalties, may follow as more evidence comes to light.

Conclusion

This high-profile raid signals the government’s tough stance on tax fraud and financial misconduct. As professionals are expected to uphold the integrity of the financial system, any breach of trust could lead to serious legal consequences.