Infosys has clarified that the company has not been named as an accused party in First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in relation to an alleged income tax fraud.
CBI is investigating a “revised tax returns” fraud case involving several unknown employees of Infosys and officials from the income tax department.
The software system for processing IT returns and refunds for the entire country known as Central Processing Centre (CPC) is managed and operated by Infosys.
The IT department recently detected a refund fraud involving 250 private sector employees, and a case was filed by the CBI in relation to 1010 instances of fraudulent claims of tax refunds.
CBI suspects the role of a section of tax officials posted at CPC working in connivance with some Infosys executives at CPC in the refund scam. They allegedly showed an inflated loss on house property in their revised IT returns and claimed refunds totaling Rs 5 crore.
The report says that Nagesh Sastri, a south Bengaluru resident, helped them make these fraudulent claims for assessment years 2014-15, 2015-16 and 2016-17.