Mangaluru: Financial fraud - Chartered accountant accused of duping doctor of lacs, case filed


Daijiworld Media Network - Mangaluru (SHP)

Mangaluru, May 22: In a major financial fraud, Mangaluru-based surgeon Dr Sriram Bhat has filed a complaint with the police as well as with the income tax department and the CA institute against chartered accountant Venkatakrishna M for allegedly defrauding him to the tune of nearly Rs 60 lac.

In a complaint filed with the Institute of Chartered Accountants of India on May 19, Dr Bhat has accused Venkatakrishna of misusing the money for reasons other than meant as fees/remuneration, defalcating the money received in a professional capacity, expressing an opinion on financial statements in which the accused had a substantial interest and contravening the guidelines issued by the Council.

Reportedly, discrepancies were observed during survey proceedings by the assistant commissioner of Income Tax at Dr Bhat's clinic on March 3. As per reports, the CA has allegedly defrauded the surgeon to a tune of Rs 55 lac-Rs 59 lac.

The survey by the tax officials revealed that the tax payments to the government were not made, although Bhat had made advance deposits for the timely payment of the tax. Dr Bhat stated that he had made remittances believing the CA, whom he knew from the past 25 years. Amid all the misappropriation, Bhat reached out to a leading chartered accountant firm, to assist him in handling the survey case and to understand the lapses made by the previous CA Venkatakrishna.

Meanwhile, once the fraud was discovered, Dr Bhat communicated the same to the accused CA. When confronted, CA Venkatakrishna reportedly gave a vague response and blurry clarifications. As per sources, a thorough enquiry by the police and income tax department may reveal if the accused had defrauded any of his other clients and incurred loss to the exchequer.

However, with mediation by well-wishers, the accused CA reportedly admitted misappropriation on his end and has come forward and paid a partial amount.

Dr Bhat said that the CA has remitted Rs 50,15,210 to income tax and Rs 16,19,735 to him after the action taken by the Income Tax Department towards tax and interest as per Income Tax Act. The total reimbursement was calculated at an amount of Rs 66,35,445.

"I was made to believe that the ITRs for financial years 2017-18 and 2018-19 were filed in time and tax due was also collected. But no returns were filed. Entire advance tax paid by me for financial years 2017-18, 2018-19 and 2019-20 were never paid," Dr Bhat said.

The current chartered accountant firm that is hired by Dr Bhat from the professional standpoint asserted that the brunt of this would, unfortunately, fall on the surgeon. As the IT department would hold the taxpayer liable for the non-payment. It would involve in Dr Bhat having to shell out an additional amount (penalties, interest) along with the tax amount. However, it is understood that the disciplinary mechanism of the Institute of Chartered Accountants is very effective and in such cases of frauds the accused members if found guilty by the committee may lose their membership for a certain years and in some case for life time.

With current case registered, the investigations into the matter are underway.

 

 

  

Comment on this article

  • Nagendra, Mangaluru

    Sat, May 23 2020

    This Chartered Accountantwoukd have cheated many middle class tax payers too. But the news will not be given ant importance as only rich and those in limelight are important.

    DisAgree [3] Agree [3] Reply Report Abuse

  • OSWALD VAZ, THOTTAM/ BAHRAIN

    Sat, May 23 2020

    If he has paid in cash which he doesn't have sufficient proof.Then legally there is less chance to get back because he paid in cash. But it depends on the CA that if he is honest he may return the same on humanitarian grounds.

    DisAgree Agree [2] Reply Report Abuse

  • Alwin, Mangalore

    Fri, May 22 2020

    Is it a match fixing

    DisAgree [2] Agree [1] Reply Report Abuse

  • Shekar Moily Padebettu, Udupi/India

    Fri, May 22 2020

    Financial fraud duping doctor in lakhs by one of the chartered accountants is of course is sad episode.However we can not blame entire chartered accountants segments for the fraud committed by one such chartered accountant.In each and every firm,company or any community,there are exceptional cases of miscreants,criminals who creates such nonsense and defame or malign the reputation,respect,name and fame of sincere and honest firms,religion or community earned during their entire life span with their sheer dedication,determination for the sole purpose of culprits personal gain.We cannot blindly trust or believe anyone in this world and always there is a limit.We should not cross that limit.We should always keep second suspicious eye when we are dealing with others.It does not mean that they are not good,they are indeed good enough and however it is better to keep bit of suspicious mind at the corner of your heart.Because our mind is very mischievous and naughty and at any point of time it might play a dirty game.This can be happened even to wise people and it is called greedy and flicking mind.

    DisAgree Agree [4] Reply Report Abuse

  • Godfrey D'Souza, Mumbai

    Fri, May 22 2020

    Feel sad for Dr. Bhat.
    This CA turned out to be a CLEANING ACCOUNTANT rather than a chartered one.
    It's difficult to trust anyone nowadays.

    DisAgree [4] Agree [12] Reply Report Abuse

  • Roshan Pereira, Mangaluru

    Fri, May 22 2020

    Don’t trust anyone. No person is wiser than yourself. Take care of your money

    DisAgree [3] Agree [23] Reply Report Abuse

  • AMAR NATHAL, MANGALORE

    Fri, May 22 2020

    Dr Sriram accused CA Venkatakrishna. Even if we have two gods they will accuse each other. So, we shall have only One God that unites us to be one human family, who does not want structures but our love.

    DisAgree [25] Agree [8] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, May 22 2020

    Now CA is also Fake ...

    DisAgree [13] Agree [43] Reply Report Abuse

  • Cynthia, Kirem

    Fri, May 22 2020

    Jossey Sir, ✋ I will look after your financial accounting of three resorts here... ...bharosaa he tho bolo ....mumbai ka nahi hoga muzse... bhaari padegaa yaar 🌂

    DisAgree [7] Agree [21] Reply Report Abuse

  • Anand, Mangalore

    Fri, May 22 2020

    Cynthi.. it is not as easy as typing comments on Daiji.

    You need a qualification and post qualification of experience of not less than 10 years . Qualified hai tho bolo.. file dila doonga :)

    DisAgree [3] Agree [20] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, May 22 2020

    How do I contact you ...

    DisAgree [7] Agree [11] Reply Report Abuse

  • Langoolacharya., Belman / Washington, DC.

    Sat, May 23 2020

    Cynthia.Kirem@yahoo.com .....

    If mail does work...go to Kirem / Dhamarsakatte and as 'Cynthi Bayammana' illu olu ye ????...

    Still don't get...look for 'Bsale Dompa' in Kirem....most probably its Cynthi's house...

    ...Tak...Takk...

    DisAgree Agree [5] Report Abuse

  • Cynthia, Kirem

    Sun, May 24 2020

    Lan... Sir, in damarskatte one or two houses have basale dompa that too if you go still interior places like patte, Aikala bawa etc. If you guide your guru 'J''sir, to enter the compound just seeing basale dompa thinking its cynthis house, bayamma of that house catch him and tie him to the gujje mara......poor fellow your guru...*" JOSSEY SIR, I DONT GROW BASALE IN DAMARSKATTE"*.... .. Please be careful ...dont enter in anyone's compound...

    DisAgree Agree [4] Report Abuse

  • Ganesh, Bangalore

    Fri, May 22 2020

    Every tax payer has to have control over his incometax login details. If the mobile no and email ID of Bhat is correctly recorded in the profile, It is difficult to cheat in this manner. there will continous mails for not furnishing returns to the registered mail ID.

    It is very easy to make payments online these days to ITD. why one has to transfer tax money to a CA?

    DisAgree [10] Agree [26] Reply Report Abuse

  • Nagesh, Mangaluru

    Sat, May 23 2020

    Doctors are ever busy and every second counts for them and that is the reason they delegate accounting job to professionals ie. Chartered Accountants. If he himself has to supervise, why pay unnecessarily to a CA. My full sympathy to the Dr who may not be able to concentrate on his medical profession fully till the matter is fully solved.

    DisAgree [2] Agree [4] Reply Report Abuse

  • MADHAVI, Goa

    Tue, May 26 2020

    Its true that the clients have to place a certain amount of reliance on the CA. However,, the extent of reliance placed by Dr Bhat is HUGE.
    Why only Doctors, even businessmen are busy. But obtaining second opinions from time to time and obtaining signed copies of statements is a must. How many of his patients trust in him fully and go under surgery without second opinions? At least educated patients won't trust blindly.

    As rightly pointed out, the educated doctor should have given his email and mobile for the efiling site and made the payments himself. It is common for doctors to chat among themselves about taxation issues and many of them are avid readers.

    Some clients insist that they don't want to be bothered about tax and accounting at all and want all services at one place (accounting, auditing, return filing, TDS return filing, GST filing, PF/ESI if applicable etc). They keep the digital signature with the CA for life only to be renewed whenever due. The CA can take advantage of that attitude as was done in this case.

    We have to learn from this case and try not to make these mistakes.

    DisAgree Agree Reply Report Abuse

  • Shashikanth, Brahmavar

    Fri, May 22 2020

    MORAL - This is why you have to marry a girl/boy of different profession.

    DisAgree [15] Agree [22] Reply Report Abuse

  • Sudesh pai, MANIPAL

    Fri, May 22 2020

    Venkat Krishna money might have looted lot of people in mangalore lot of believe in CAs for financial problems but till today they take us for a ride have you heard any CA taken to court for misappropriation of finance still a mystery

    DisAgree [5] Agree [27] Reply Report Abuse

  • Sanjay, Hebri

    Fri, May 22 2020

    There is a limit to believe... don't cross it, otherwise there are chances of fraud.

    DisAgree [6] Agree [22] Reply Report Abuse

  • Sahil, Mangaluru

    Fri, May 22 2020

    If our accountants well paid over here they will support a lot to all firms owner and capable to maintain proper financial transaction and timely manner alert about such fraud no need to go abroad. CA not your employee.

    DisAgree [6] Agree [24] Reply Report Abuse


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Title : Mangaluru: Financial fraud - Chartered accountant accused of duping doctor of lacs, case filed


 
 
 
 

 
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