undefined | Coimbatore financial advisor gets Rs 24.8crore fine and two years jail for tax evasion

A Coimbatore court sentenced financial advisor B Fayaz Ahmed to two years of rigorous imprisonment and imposed a fine of Rs 24.8 crore for wilfully evading tax. The case concerned the 2015‑16 assessment year, where Ahmed had declared a taxable income of about Rs 48 crore but failed to discharge the tax liability. Investigators found that he had falsely claimed Rs 7.5 lakh as tax deducted at source through his firm YFS Finance Limited, even though the amount was never deposited with the government.

Despite repeated notices and multiple opportunities to clear the dues, Ahmed did not comply, leading the Income Tax Department to calculate a total outstanding amount of Rs 24.78 crore, inclusive of interest and penalties. The matter was heard by Chief Judicial Magistrate K Sivakumar, with Special Public Prosecutor K Venkatesh representing the tax department, who argued that the non‑payment was a deliberate attempt to evade tax.

The court found Ahmed guilty under Section 276C(2) of the Income Tax Act for willful tax evasion, confirming the stringent penalty. The ruling underscores the authorities’ resolve to crack down on financial fraud and serves as a warning to others who might attempt similar schemes.

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