Small Shopkeeper in Bulandshahr Hit with Rs. 141 Crore Income Tax Notice in PAN Misuse Scam

A shopkeeper-owner in Bulandshahr, Uttar Pradesh, was amazed when he received an Income Tax Notice worth over Rs 141 crore. The individual is recognised as Sudhir Gupta. During the case investigation, Sudhir asserted that his Permanent Account Number (PAN) was misused to establish fake companies in Delhi. He explained to the tax department that he had no connection with these shell companies and was not even aware of them. The case has been registered in the Khurja Police Station, and an investigation is going on.

Sudhir runs a modest grocery shop and is a resident of Khurja’s Nayaganj locality. According to the reports, this is not the first time he received such a notice; the first time a notice was sent to him was in 2022. This is the second time (July 10) he has received such a notice reporting sales of a total of Rs 1,41,38,47,126, and was sent merely in his name. Sudhir claimed his monthly income averages between five and seven thousand rupees, and he has never seen such a massive amount in his entire life.

The fraud takes place using PAN when someone’s PAN number is misused to open bank accounts, establish shell companies, apply for loans, and escape taxes. Generally, individuals whose PAN is misused are unaware of this fraud until they receive an unexpected tax notice or calls from the tax department.

PAN is the key document used to perform financial transactions in India. Therefore, any misuse of this number could lead to severe implications like penalties, summons, tax notices and many others. Even a person’s credit profile can be affected due to PAN misuse and can result in a tax department probe. Therefore, individuals are always advised to keep their personal details, especially their PAN number, safe from strangers, if you want to avoid unnecessary legal consequences. Regularly monitor your credit reports; this can help you detect unauthorised loans or accounts opened using your PAN. Always make sure your PAN is linked to your Aadhaar Card; this reduces the possibility of fraud and fraudsters misusing your identity. Avoid taking use of your original documents; always try sharing only photocopies of your documents.