- (1.) This is a Reference under Section 21(5) of Chartered Accountants Act, 1949 (hereinafter referred to as the Act, 1949) as it was before its substitution and amendment by Act No. 9 of 2006 which came into force on 17.11.2006, in the matter of Sri Anil Kumar Sangi, Chartered Accountant at NOIDA.
(2.) Brief facts necessary for exercising powers under Section 21(6) of Act, 1949 may be stated as under.
(3.) Smt. Seema Raj, Assistant Commissioner Income Tax, Central Circle IV, New Delhi (hereinafter referred to as the ACIT, New Delhi ) forwarded a complaint dated 19.03.1998 under Section 21(1) of Act, 1949 against Respondent-Anil Kumar Sanghi, alleging that he was Chartered Accountant of one Sri Prakash Chandra Yadav son of Sri Ram Lakhan Singh Yadav, Former Union Minister. In the wake of allegations on Sri Prakash Chandra Yadav regarding receipt of kickbacks of Rs. 433 crores Urea Scam, certain inquiries were conducted by Central Bureau of Investigation (hereinafter referred to as the CBI ) and Central Economic Intelligence Bureau (hereinafter referred to as the CEIB ). On the basis of information received from CEIB, Income Tax Authorities conducted searches at residential premises of Sri Prakash Chandra Yadav and Respondent-Anil Kumar Sanghi, registered offices of companies of Sri Prakash Chandra Yadav and on the bank accounts of such companies and on persons/ related persons. These searches were conducted between June, 1996 to January, 1997 and therein following facts were revealed: (a) Huge cash deposits running into crores of rupees had been made by the Respondent in three bank accounts of his concerns viz. M/s Anil Sanghi and Associates and M/s Ganpati Invtt. Consultants. Details of these bank accounts and the cash deposits in them are as follows: JUDGEMENT_402_LAWS(ALL)9_2016_1.html (b) The money so deposited in these three accounts had then been transferred either directly or after being routed through one or more bank accounts into the following Companies in which Shri Prakash Chandra Yadav and his family members were in the controlling position as Directors/ Authorised Signatories for the bank accounts of the Companies: JUDGEMENT_402_LAWS(ALL)9_2016_2.html;