The main legal point established is that concrete evidence, including a chain of circumstances and expert opinions, can establish guilt in conspiracy and fraud cases.

JUDGMENT

(Prayer: Criminal Appeal is filed under Section 374 (2) of Cr.P.C., pleased to set aside the judgment dated 18.03.2010 made in C.C.No.18 of 2003 by IX Additional Special Judge for CBI case/IX Additional City Civil Court, Chennai in so far as the accused No.2 is concerned and acquit the appellant from the above case.)

1. G.Moorthy/the appellant herein is the second accused in C.C.No.18 of 2003 tried by the IX Additional City Civil Court, Chennai, for CBI cases, Chennai. The accused/A2 was found guilty of offence under Section 120 B r/w 420 of I.P.C and Section 13(2) r/w 13(1)(d) of P.C Act, 1988 and sentenced to undergo R.I for a period of one year and to pay fine of Rs.2000/- and in default for payment of fine to undergo R.I for period of three months, convicted under Section 420 of I.P.C and sentenced to undergo R.I for period of one year and imposed fine of Rs.2000/- and in default for payment of fine to undergo R.I for period of three months. The period of sentence was ordered to run concurrently and the period of imprisonment already undergone if any ordered to be set off under Section 428 of Cr.P.C.

2. The case of the prosecution in nutshell is that, during the year 1998-99 one Manoharan while serving as Upper Division Clerk in Income Tax Department, Chennai along with the appellant/G.Moorthy, Income Tax Practitioner conspired to cheat the Income Tax Department along with Veerappan Cashier in Sangli Bank, West Mambalam, Chennai along with Gnanasekaran, Clerk in Sangli Bank, West Mambalam, Chennai, by submitting fake income tax returns in the name of fictitious persons viz., S.Arumugam of M/s.Polar Constructions and M/s.Vikram Transport Pvt Limited and the said refund orders were encashed by opening fictitious account with connivance of Veerappan, Cashier and Gnanasekaran, Clerk in Sangli Bank, West Mambalam respectively and thereby, obtained pecuniary gain to tune of Rs.3,58,604/- and corresponding wrongful loss to the Income Tax Department.

3. According to the prosecution, V.Manoharan, U.D.C, Income Tax Department, prepared TDS refund application in the name of S.Arumugam for Rs.63,800/-, showing the assessee address as No.76/2, K.R.Koil Street, West Mambalam, Chennai-33. Along with the application, TDS certificate in Form No.16-A, showing deduction of tax for Rs.59,320/- and Rs.32,680/- by Tamil Nadu Handloom Weavers Co-operative Society Limited was enclosed. To expedite the refund process, medical certificate in the name of Dr.M.S.Rao was enclosed. The application was processed and refund order was issued. The refund order was despatched to S.Arumugam at No.76/2, K.R.Koil Street, West Mambalam, Chennai-33 by registered post. The refund order was encashed through account maintained in Sangli Bank, West Mambalam and the accounts were opened by A2/Moorthy in connivance with A3 (Veerappan) and A4(Gnanasekaran), Cashier and Clerk at Sangli Bank, West Mambalam respectively.

4. Similarly, in the name of M/s.Vikram Transport Pvt. Ltd., refund application prepared by A1 Manoharan and the file was submitted to the higher Officer, who have requested the Head Clerk to check the returns calculated in the working sheet. Accordingly, Manoharan (A1) calculated refund of Rs.1,05,095/- and got the approval of the Deputy Commissioner of Income Tax for refund. Accordingly, refund order dated 26.08.1999 for Rs.1,05,095/- was issued. The refund order was despatched to one Sri.R.V.Shastri, Senior Manager (Finance), Ministry of Surface Transport, at No.501, Transport Bhavan, New Delhi. However, letter returned undelivered with an endorsement “no such person by name Sri.R.V.Shastri in the said address”. The TDS certificate in favour of M/s.Vikram Transport Pvt Limited was non-existing firm is a bogus certificate and using the bogus certificate A1 (Manoharan) managed to get the approval from his higher officials and got the refund order initially despatched to a non-existing address and later on delivered to a person at No.11, G.M. Street,